The effect of Environment, Social and Governance (ESG) on Stock Price with the mediation of Deviden and Market Capitalization
Risal Rinofah, Pristin Prima Sari, Salma Salsabilla Iswandari, Wahyuni

Universitas Sarjanawiyata Tamansiswa

Abstract

Environment, social and governance issues will support for sustainable in business operation of firms. Environment, social and governance (ESG) become part of value for firms then ESG will the rise of price stock. ESG also determined by dividend and market capitalization to increase price stock. The purpose of the research is to empirically test the mediation of Devidend and market power between Environment, Social and Governance (ESG) to stock prices. This research method used path analysis using Smartpls 3.0. The information comes from the annual financial reports listed in the Indonesian Stock Exchange for the years 2023. The sample of research are telecommunication, banking, Food and Beverage sectors. The results of the F-test show that ESG have a significant impact on stock prices. At the same time, the t-test shows that ESG have significant impact on market capitalization, ESG have significant impact on devidend, but Devidend does not have significant effect on stock prices and market power does not have significant effect on stock price. Market capitalization and deviden significant mediate ESG on price stock. The beneficial of research are to development of literature about ESG, Market power, Devidend, Price stock.

Keywords: Devidend, ESG, Market power, Price stock, IDX.

Topic: Economics