The Impact Of Environmental, Social, And Governance on the Market Capitalization of Banking Companies Listed on the Indonesia Stock Exchange During the Period of 2022-2024

Abstract

The purpose of this research is to analyze the impact of Environmental, Social, and Governance (ESG) scores on the market capitalization of banking sector companies listed on the Indonesia Stock Exchange (IDX) from 2022 to 2024. The independent variables in this research were ESG, E, S, G, and the dependent variable was market capitalization, proxied by Tobin Q. The research method used multiple linear regression to test the direct or indirect relationship among variables. The results of the research indicated that ESG had a negative and significant impact on market capitalization. In addition, Environment had a positive and significant impact on market capitalization, while social and governance had a positive but insignificant impact on market capitalization.