The Effect Of Sustainable Finance On The Performance Of Banking Companies
Keywords:
Sustainability Finance, Corporate Performance, New EraAbstract
ABSTRACT. Banking companies are one of the business sectors that provide services related to finance. In recent years, there has been a change in view of the business environment, where companies wishing to compete must pay more attention to sustainability. Sustainability finance is comprehensive support from the financial services industry for sustainable growth. In the new era, companies must pay attention to the influence of finance on their performance. Such support can help companies gain a good reputation and improve their performance.The banking industry must be able to develop digitization to facilitate all aspects, for example company performance. What is meant by the era of sustainability here is an era in which the company generates profits without compromising the environment and social society. The purpose of this study is to determine the effect of financial sustainability on company performance.This study uses a quantitative approach with the type of data used secondary data. The independent variable in this study is sustainability finance proxied by the Company's Sustainable Finance Disclosure (economic, social, environmental), while the dependent variable is the company's performance proxied by ROA and ROE. The research sample is listing banking companies listed on the Indonesia Stock Exchange for the 2020-2022 period. The samples used were 19 companies with a total of 42 companies. Shows that economic, social and environmental performance affect the performance of banking companies. Based on the results of testing the hypothesis regarding economic performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding economic performance on company performance (ROE) are negative. Based on the results of testing the hypothesis regarding social performance on company performance (ROA) is positive. While the results of testing the hypothesis regarding social performance on company performance (ROE) are negative. Based on the results of testing the hypothesis regarding environmental performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding environmental performance on company performance (ROE) are positive. Based on the results of tests on the economic, social and environmental aspects of ROA and ROE, the economic, social and environmental aspects have a simultaneous effect on company performance. Based on the results of testing the hypothesis regarding social performance on company performance (ROA) is positive. While the results of testing the hypothesis regarding social performance on company performance (ROE) are negative. Based on the results of testing the hypothesis regarding environmental performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding environmental performance on company performance (ROE) are positive. Based on the results of tests on the economic, social and environmental aspects of ROA and ROE, the economic, social and environmental aspects have a simultaneous effect on company performance. Based on the results of testing the hypothesis regarding social performance on company performance (ROA) is positive. While the results of testing the hypothesis regarding social performance on company performance (ROE) are negative. Based on the results of testing the hypothesis regarding environmental performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding environmental performance on company performance (ROE) are positive. Based on the results of tests on the economic, social and environmental aspects of ROA and ROE, the economic, social and environmental aspects have a simultaneous effect on company performance. Based on the results of testing the hypothesis regarding environmental performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding environmental performance on company performance (ROE) are positive. Based on the results of tests on the economic, social and environmental aspects of ROA and ROE, the economic, social and environmental aspects have a simultaneous effect on company performance. Based on the results of testing the hypothesis regarding environmental performance on company performance (ROA) is negative. While the results of testing the hypothesis regarding environmental performance on company performance (ROE) are positive. Based on the results of tests on the economic, social and environmental aspects of ROA and ROE, the economic, social and environmental aspects have a simultaneous effect on company performance.
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