PENGARUH MANAJEMEN RISIKO DAN ESG DISCLOSURE TERHADAP KINERJA KEUANGAN PERBANKAN DI INDONESIA

Abstract

Objective: This study aims to determine the effect of Risk Management and ESG Disclosure on the financial performance of banking in Indonesia. Research methodology: This study is quantitative. The type of data used in this study is secondary data. In this study, the data collection method was obtained and obtained using the documentation method, namely data collection by collecting, recording, and reviewing company documents or archives, data from 17 company financial reports in the 2020-2022 period. The data analysis method in this study uses Panel Data Regression analysis. Results: The results of this study indicate that Operating Costs (BOPO) have a negative effect on the financial performance of banking companies, while Non-Performing Loans (NPL), Net Interest Margin (NIM), and ESG Disclosure do not affect the financial performance of banking companies. Limitations: This study is limited to banking companies registered in Indonesia, so the results may not be generalizable to other industries or companies outside Indonesia. In addition, some data regarding ESG (Environmental, Social, and Governance) disclosure is not available completely or consistently between one company and another. Contribution: The results of this study can be a reference for policymakers, regulators, and financial authorities in Indonesia in encouraging banks to strengthen risk management practices and improve ESG disclosure as part of good governance.