MEKANISME KONTROL DAN PENGUNGKAPAN ENVIRONMENTAL, SOCIAL, GOVERNANCE TERHADAP KINERJA KEUANGAN BANK DI INDONESIA

Authors

Ika Wulandari Universitas Mercu Buana Yogyakarta
Abdul Halik Universitas 17 Agustus 1945
Siti Mujanah Universitas 17 Agustus 1945

DOI:

Keywords:

Control Mechanisms; Financial Performance; Audit Committee; Public Ownership.

Abstract

This study aims to determine the effect of control mechanisms, proxied by public ownership, audit committees, and ESG disclosure, on the financial performance of banks in Indonesia, both partially and simultaneously. The study population was banks listed on the Indonesia Stock Exchange between 2018 and 2023. The sample was taken using purposive sampling, selecting 12 banks that met the criteria. Data analysis utilized SmartPLS regression version 4. The results indicate that public ownership has a significant impact on bank financial performance. Meanwhile, audit committees and ESG disclosure do not. Simultaneously, ESG disclosure, audit committees, and public ownership influence bank financial performance. The implications of this study suggest that public ownership plays a significant role in enhancing bank financial performance, as it fosters transparency and improves management efficiency. Meanwhile, the effectiveness of audit committees and ESG disclosure needs to be strengthened to provide tangible added value to bank performance. These results suggest the need for enhanced governance and improved quality of sustainability reporting, enabling non-ownership control mechanisms to operate more effectively.

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