Yenny Wati, Teddy Chandra, Harry Patuan Panjaitan, Suhardjo Suhardjo, Nyoto Nyoto

Unlocking Sustainable Value: Green Governance's Moderating Role on ESG, Green Innovation, R&D, and Financial

Introduction

Unlocking sustainable value: green governance's moderating role on esg, green innovation, r&d, and financial. Explore green governance's moderating role on ESG, green innovation & R&D, significantly boosting firm financial performance. Unlock sustainable value post-pandemic.

Abstract

This study explores the effects of ESG practices, green innovation (product and process), and R&D intensity on financial performance, with green corporate governance serving as a moderating variable. This represents an integrated approach that remains underexplored in post-pandemic sustainability contexts. Driven by the need for firms to balance sustainability and profitability, this research addresses how internal sustainability strategies influence financial outcomes. This study utilizes panel data from IDXESGL-listed firms over 2020–2024, comprising 100 observations. Regression analysis reveals that ESG, green innovation, and R&D intensity each have positive and significant effects on financial performance. Moreover, green corporate governance significantly moderates the relationships among ESG, green innovation, R&D intensity, and financial performance. This research implies that companies should strengthen green governance to maximize the financial benefits of ESG and innovation initiatives; investors can consider these sustainability factors in valuation decisions; and regulators may promote policies that incentivize green corporate practices.

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