Handoyo, So ik; Anas, Syai ul
A icle
The e ec o en i onmen al, social, and go e nance (ESG) on i m
pe o mance: he mode a ing ole o coun y egula o y quali y and
go e nmen e ec i eness in ASEAN
Cogen Business & Managemen
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: Handoyo, So ik; Anas, Syai ul (2024) : The e ec o en i onmen al, social, and
go e nance (ESG) on i m pe o mance: he mode a ing ole o coun y egula o y quali y and
go e nmen e ec i eness in ASEAN, Cogen Business & Managemen , ISSN 2331-1975, Taylo &
F ancis, Abingdon, Vol. 11, Iss. 1, pp. 1-28,
h ps://doi.o g/10.1080/23311975.2024.2371071
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The effec o en i onmen al, social, and
go e nance (ESG) on fi m pe o mance: he
mode a ing ole o coun y egula o y quali y and
go e nmen effec i eness in ASEAN
Sofik Handoyo & Syai ul Anas
To ci e his a icle: Sofik Handoyo & Syai ul Anas (2024) The effec o en i onmen al, social,
and go e nance (ESG) on fi m pe o mance: he mode a ing ole o coun y egula o y quali y
and go e nmen effec i eness in ASEAN, Cogen Business & Managemen , 11:1, 2371071, DOI:
10.1080/23311975.2024.2371071
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Accoun ing, co po A e go e nAnce & Business e hics |
eseA ch A icle
Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2371071
The e ec o en i onmen al, social, and go e nance (ESG) on i m
pe o mance: he mode a ing ole o coun y egula o y quali y and
go e nmen e ec i eness in ASEAN
so ik handoyo and syai ul Anas
Facul y o economics and Business, uni e si as Padjadja an, Bandung, indonesia
ABSTRACT
he esea ch examines how en i onmen al, social, and go e nance (esg) pe o mance
in luences i m pe o mance in he AseAn egion, ocusing on how coun y egula o y
quali y and go e nmen e ec i eness a ec his ela ionship. he s udy uses a
comp ehensi e da ase and inds ha en i onmen al and social pe o mances do no
di ec ly impac i m pe o mance signi ican ly. howe e , go e nance pe o mance has a
no ably posi i e e ec on i m pe o mance, highligh ing he impo ance o sound
go e nance p ac ices. he s udy also iden i ies ha he connec ions be ween
en i onmen al and social pe o mance and i m pe o mance a e no ably a ec ed by
coun y egula o y quali y and go e nmen e ec i eness. his sugges s ha he bene i s
o en i onmen al and social ini ia i es on i m pe o mance depend on he egula o y
and go e nance en i onmen s in which i ms ope a e. simila ly, he link be ween
go e nance pe o mance and i m pe o mance is also in luenced by hese ac o s.
hese indings unde sco e he essen ial ole o suppo i e egula o y s uc u es and
e ec i e go e nmen p ac ices in enhancing he posi i e e ec s o esg ini ia i es on
i m pe o mance. o e all, his s udy enhances ou unde s anding o esg impac s
wi hin he AseAn con ex and emphasizes he need o in eg a e esg e o s wi h
b oade ins i u ional suppo o achie e op imal i m pe o mance.
1. In oduc ion
in ecen yea s, he e has been a signi ican ans o ma ion in he global business landscape, wi h a
g owing emphasis on en i onmen al, social, and go e nance (esg) c i e ia (chop a e al., 2024). his shi
is i al o os e ing sus ainable de elopmen and co po a e accoun abili y, encou aging en e p ises o
make in o med decisions conside ing he consequences o hei ac ions on esg ac o s (Ba a a e al.,
2023). he di e se economies, dynamic g ow h ajec o ies, and moun ing sus ainabili y challenges wi hin
he Associa ion o sou heas Asian na ions (AseAn) egion p esen bo h oppo uni ies and challenges
ha necessi a e a balanced app oach o sus ainable g ow h and de elopmen (su iyankie kaew & nimsai,
2021). his s udy aims o o e heo e ical insigh s and p ac ical implica ions by in es iga ing he ela ion-
ship be ween esg p ac ices and i m pe o mance in he AseAn con ex . he goal is o enhance ou
unde s anding o how esg p ac ices impac i m pe o mance and o iden i y s a egies ha encou age
businesses o adop mo e sus ainable p ac ices.
inco po a ing esg ac o s in o business s a egies is c ucial in oday’s landscape, whe e sus ainabili y
has become a ocal poin o business discussions (F iede e al., 2015). his o ically, companies o en o e -
looked he impo ance o esg aspec s, conside ing hem only in he con ex o philan h opy o e hics.
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT so ik Handoyo so [email protected] Facul y o economics and Business, uni e si as Padjadja an, Dipa i uku 35,
Bandung, 40132, indonesia.
h ps://doi.o g/10.1080/23311975.2024.2371071
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
ecei ed 7 Feb ua y 2024
e ised 17 June 2024
Accep ed 18 June 2024
SUBJECTS
Business, Managemen
and Accoun ing;
co po a e; go e nance;
go e nance; global;
go e nance
KEYWORDS
esg; AseAn; egula o y
quali y; go e nmen
e ec i eness; i m
pe o mance
REVIEWING EDITOR
collins n im, uni e si y o
sou hamp on, uni ed
Kingdom o g ea B i ain
and no he n i eland
JEL CLASSIFICATION
CODES
g34; M14; o16; Q56; K22
2 s. hAnDoYo AnD s. AnAs
howe e , he e has been a no iceable shi as businesses now ecognize he undamen al connec ion
be ween hei esg e o s and po en ial inancial bene i s. While esg esea ch has gained popula i y, i
p edominan ly ocuses on single-coun y analyses, lea ing egional analyses ela i ely neglec ed despi e
he global impo ance o sus ainabili y and e hical p ac ices. his gap in unde s anding, pa icula ly in
eme ging ma ke s like AseAn, may hinde in es o s’ abili y o make in o med decisions ha accoun o
esg isks and oppo uni ies in hese ma ke s.
his s udy aims o in es iga e he ela ionship be ween esg p ac ices and i m pe o mance in AseAn
economies. he esea ch will add ess wo main ques ions: i s , how much esg p ac ices impac he
inancial pe o mance o i ms in he AseAn egion; second, whe he he in luence o esg on i m pe -
o mance is a ec ed by coun y-speci ic ac o s like go e nmen e ec i eness and egula o y quali y. he
goal is o p o ide insigh s in o he connec ion be ween sus ainable business p ac ices and economic
ou comes in AseAn, con ibu ing o he b oade discussion on co po a e sus ainabili y. Addi ionally, he
esea ch aims o o e aluable guidance o policymake s and business leade s who a e wo king o bal-
ance economic g ow h wi h sus ainable de elopmen .
he s udy ocuses on unde s anding he impac o esg p ac ices on company pe o mance, pa icu-
la ly in he con ex o AseAn. While he e is a gene al belie ha s ong esg p ac ices lead o be e
business pe o mance, empi ical da a is inconclusi e, especially in eme ging ma ke s. his esea ch aims
o add ess his gap by examining he speci ic economic landscape o AseAn, which includes a mix o
eme ging ma ke s and a ying deg ees o egula o y ma u i y. he objec i e is o gain a be e unde -
s anding o how esg p ac ices in luence i m pe o mance in his egion and o p o ide guidance o
policymake s conside ing he unique economic cha ac e is ics o AseAn.
his s udy aims o ill signi ican esea ch gaps on he e ec s o esg p ac ices on i m pe o mance
wi hin AseAn coun ies. he esea ch will p o ide an in-dep h analysis o he co ela ion be ween esg
dimensions and i m pe o mance in he di e se economies o AseAn. one no able gap is he lack o
empi ical esea ch on he indi idual and collec i e impac s o esg dimensions on i m pe o mance in
AseAn. gi en he di e si y o AseAn economies, i is likely ha he e ec s o esg p ac ices a y ac oss
he egion. his s udy will explo e he a ying impac s o esg p ac ices on i m pe o mance in di e en
AseAn coun ies. Addi ionally, sus ainabili y s udies ha e been la gely guided by a single heo e ical
pe spec i e. o add ess his limi a ion, his s udy will adop mul iple heo e ical pe spec i es o examine
he complex ela ionship be ween esg pe o mance and i m pe o mance.
his esea ch makes a signi ican con ibu ion o he exis ing li e a u e by examining he in ica e
ela ionship be ween esg p ac ices and i m pe o mance in he AseAn con ex . By aking in o accoun
he mode a ing e ec s o coun y egula o y quali y and go e nmen e ec i eness, he s udy p o ides a
comp ehensi e unde s anding o how hese ins i u ional ac o s in luence he e ec i eness o esg ini ia-
i es. i enhances he heo e ical amewo k by es ablishing a link be ween esg pe o mance and ins i-
u ional quali y and p o ides p ac ical insigh s o policymake s and co po a e leade s in he AseAn
egion. he s udy emphasizes he c i ical impo ance o s ong egula o y en i onmen s and e ec i e
go e nance in maximizing he posi i e impac s o esg p ac ices on i m pe o mance, he eby con ibu -
ing o sus ainable de elopmen and s eng hening economic esilience in he egion.
2. Backg ound
he connec ion be ween esg ac o s and i m pe o mance has a ac ed signi ican a en ion om
academia and he co po a e wo ld. his opic is becoming inc easingly ele an in he AseAn egion
as sus ainabili y is seen as c ucial o long- e m business success. Wi h he di e se economies, de el-
opmen le els, and go e nance p ac ices in AseAn, i is an ideal se ing o s udy how esg ac o s
in luence i m pe o mance. his s udy aims o con ibu e o exis ing li e a u e by examining he eal
e ec s o esg conside a ions on i m pe o mance wi hin AseAn. speci ically, we will in es iga e he
po en ial mode a ing oles o coun y egula o y quali y and go e nmen e ec i eness. By analyzing
hese ac o s, we hope o deepen ou unde s anding o he impo ance o esg in AseAn co po a e
pe o mance. he indings will p o ide aluable insigh s in o he ela ionship be ween esg c i e ia
and i m pe o mance, highligh ing he mode a ing impac o egula o y quali y and go e nmen
e ec i eness.
cogen Business & MAnAgeMen 3
he quali y o public go e nance has a signi ican impac on he ela ionship be ween esg p ac ices
and i m pe o mance in AseAn. wo impo an aspec s o public go e nance a e egula o y quali y and
go e nmen e ec i eness. egula o y quali y e e s o he go e nmen ’s abili y o c ea e and en o ce pol-
icies and egula ions ha p omo e p i a e sec o de elopmen while main aining e hical business p ac-
ices (handoyo, 2023). he way businesses include esg issues in hei s a egies is impac ed by his. Be e
egula o y quali y makes i easie o businesses o in eg a e esg p ac ices in o hei models. go e nmen
e ec i eness, on he o he hand, e e s o he quali y o public se ices, he compe ence o he ci il se -
ice, and i s independence om poli ical p essu es (handoyo, 2023). go e nmen e ec i eness impac s
he en o cemen o esg egula ions and he p o ec ion o s akeholde in e es s. g ea e go e nmen e ec-
i eness leads o be e en o cemen o esg egula ions and enhanced s akeholde p o ec ion.
As businesses inc easingly ecognize he impo ance o sus ainable p ac ices o long- e m iabili y,
he quali y o public go e nance becomes a c i ical ac o ha can ei he aid o impede his p ocess.
public go e nance includes egula o y policies and go e nmen se ices, which signi ican ly impac he
in eg a ion o sus ainabili y in o business models. o unde s and he link be ween esg p ac ices and i m
pe o mance in AseAn, i is essen ial o assess public go e nance quali y comp ehensi ely. his e alua-
ion helps iden i y how public go e nance in luences he e ec i eness o esg p ac ices in p omo ing
business sus ainabili y. insigh s gained om his ela ionship can assis policymake s and s a egis s in
de eloping policies and s a egies o enhance public go e nance in he egion, os e ing a sus ainable
business cul u e. ul ima ely, his con ibu es o a mo e p ospe ous and sus ainable u u e.
AseAn has shown a s ong commi men o p omo ing sus ainabili y h ough ini ia i es aimed a
enhancing egula o y amewo ks and go e nance mechanisms. no able examples o hese egional
e o s include he AseAn co po a e go e nance sco eca d and he AseAn g een Bond s anda ds, bo h
o which aim o encou age sus ainable inance and in es men . hese ini ia i es demons a e a deep
unde s anding o he c ucial ole o go e nance in sus ainable de elopmen and he in eg a ion o esg
c i e ia in o business p ac ices. he AseAn co po a e go e nance sco eca d assesses he co po a e go -
e nance p ac ices o publicly lis ed companies, while he AseAn g een Bond s anda ds p o ide guide-
lines o g een bond issue s o ensu e compliance wi h en i onmen al sus ainabili y s anda ds. By
p omo ing good go e nance p ac ices and encou aging sus ainable in es men s, hese ini ia i es make
signi ican con ibu ions o he egion’s sus ainable de elopmen goals.
he a ying le els o egula o y quali y and go e nmen e ec i eness ac oss AseAn coun ies p o ide
a unique oppo uni y o s udy how hese ac o s in luence he ela ionship be ween esg (en i onmen al,
social, and go e nance) p ac ices and i m pe o mance. in coun ies wi h e ec i e go e nance and high
egula o y quali y, businesses a e likely o ope a e in en i onmen s ha suppo esg ini ia i es, leading
o be e pe o mance. on he o he hand, in coun ies wi h lowe egula o y quali y and go e nmen
e ec i eness, businesses may ace obs acles in adop ing esg p ac ices, which can nega i ely impac hei
pe o mance. his highligh s he impo ance o c ea ing an ecosys em ha suppo s esg p ac ices o
p omo e social and inancial sus ainabili y. he e o e, businesses a e encou aged o adop esg p ac ices
and ope a e in socially esponsible and inancially iable ways.
in ligh o he a ying le els o de elopmen and unique cha ac e is ics in AseAn's public go e nance,
his s udy aims o p o ide a comp ehensi e analysis o he challenges in implemen ing esg p ac ices in
eme ging ma ke s and hei impac on sus ainable business success. he s udy will explo e he mode -
a ing oles o egula o y quali y and go e nmen e ec i eness o gain a ho ough unde s anding o how
esg p ac ices in luence businesses in he egion wi h di e en public go e nance pe o mances.
ul ima ely, he goal is o guide businesses in na iga ing he changing landscape o eme ging ma ke s
using esg s a egies and add essing speci ic ac o s such as go e nmen e ec i eness and egula o y
quali y o achie e sus ainable success.
3.Theo e ical li e a u e e iew
3.1. S akeholde heo y
s akeholde heo y sugges s ha an o ganiza ion’s success depends on how e ec i ely i manages and
balances he in e es s o di e en s akeholde g oups, such as employees, cus ome s, supplie s,
4 s. hAnDoYo AnD s. AnAs
communi ies, and in es o s (F eeman, 1984). An o ganiza ion can c ea e las ing alue ha bene i s e e y-
one by add essing he needs and desi es o all s akeholde s. his heo y challenges he adi ional
sha eholde -cen ic model by ad oca ing o a mo e inclusi e app oach o alue c ea ion and e hical
esponsibili y. i sugges s ha o ganiza ions ha e a du y o make decisions ha bene i no only sha e-
holde s bu all s akeholde s (goswami & Bhadu i, 2023). his inclusi e app oach is i al o achie ing
long- e m sus ainabili y and success, as s akeholde suppo and app o al a e c ucial o main aining
ope a ions and os e ing g ow h.
s akeholde s’ pe cep ions signi ican ly impac a i m’s esg e o s. posi i e pe cep ions can imp o e a
i m’s epu a ion, a ac and e ain cus ome s, and boos in es o con idence, all o which a e c ucial
o inancial pe o mance and compe i i e edge ( azak e al., 2023). con e sely, nega i e pe cep ions
can lead o boyco s, di es men s, and a damaged epu a ion, which can ha e long- e m ad e se e ec s
on he i m’s success ( azak e al., 2023). s akeholde s’ opinions can a ec hei engagemen wi h he
i m, hei loyal y, and hei ad ocacy (Bellucci e al., 2019). he e o e, companies mus ac i ely engage
wi h hei s akeholde s o comp ehend hei expec a ions and p inciples, allowing hem o be e cus-
omize hei esg s a egies.
companies ha p io i ize esg ini ia i es can achie e signi ican bene i s in o e all pe o mance. he
link be ween esg pe o mance and i m pe o mance is media ed by how he company’s esg e o s
in luence s akeholde s’ pe cep ions and beha io s. Fo cus ome s, a company’s esg ini ia i es can esul
in g ea e loyal y and sa is ac ion (pu iwa & ipopsakul, 2023). cus ome s p e e o associa e wi h i ms
whose alues align wi h hei own, leading o inc eased sales and a s onge b and. cus ome s iew esg
ini ia i es as a sign o a company’s commi men o social esponsibili y and sus ainabili y. Fo employees,
a company’s esg commi men can posi i ely impac engagemen and mo ale (Koeswayo e al., 2024).
he belie ha a company is making a posi i e impac on socie y and he en i onmen can lead o mo e
p oduc i e, inno a i e, and commi ed employees. his, in u n, can esul in highe e en ion a es and
c ea e a mo e sus ainable and e icien wo kplace. Fo in es o s, a company’s pe o mance in he a eas
o esg signals i s long- e m iabili y and e hical s anding (Khandelwal e al., 2023). in es o s conside a
company’s esg pe o mance as p oo o i s dedica ion o sus ainabili y and social esponsibili y, impac -
ing in es men choices and po en ially lowe ing capi al expenses
empi ical e idence indica es a posi i e co ela ion be ween esg adhe ence and i m pe o mance.
s akeholde heo y elucida es his ela ionship by unde sco ing he impo ance o building us , loyal y,
and coope a ion among di e se s akeholde s (Minoja, 2012). implemen ing esg can d i e inno a ion,
mi iga e isks, enhance ope a ional e iciencies, and ul ima ely imp o e i m pe o mance (na ula e al.,
2023). s akeholde heo y highligh s he necessi y o add essing all s akeholde s’ in e es s and conce ns
in oday’s global business en i onmen . esg ac o s e lec a company’s social esponsibili y owa d hese
s akeholde s, and s ong esg pe o mance can s eng hen ela ionships wi h hem, leading o imp o ed
inancial pe o mance. Beyond sha eholde s, businesses a e accoun able o a wide a ay o s akeholde s,
including communi ies and he en i onmen . By add essing mul iple s akeholde s’ conce ns, companies
can ga ne g ea e suppo and achie e be e i m pe o mance.
3.2. Ins i u ional heo y
ins i u ional heo y p o ides a s ong basis o s udying he in luence o esg on company pe o mance,
especially in he AseAn egion. his heo y emphasizes how he ins i u ional en i onmen , including
egula o y amewo ks, cul u al no ms, and socie al expec a ions, signi ican ly in luences he beha io s,
s a egies, and o e all pe o mance o i ms (huang & s e nquis , 2007). Acco ding o ins i u ional heo y,
o ganiza ions con o m o ex e nal ules and no ms in o de o gain legi imacy, secu e esou ces, and
ensu e hei su i al (Da id e al., 2019). When i comes o esg, his heo y emphasizes ha companies
a e mo i a ed by bo h in e nal goals and ex e nal p essu es o emb ace sus ainable and socially espon-
sible p ac ices.
s udies on esg and i m pe o mance, iewed h ough he lens o ins i u ional heo y, sugges ha
i ms a e in luenced by ex e nal ins i u ional p essu es in addi ion o in e nal mo i a ions and ma ke
o ces (ia idis & Kesidou, 2018). hese p essu es include o mal egula ions, s anda ds, and policies, as
cogen Business & MAnAgeMen 5
well as in o mal no ms and s akeholde expec a ions. high-quali y egula ion and e ec i e go e nance
a e c ucial elemen s o he ins i u ional en i onmen ha can ei he suppo o hinde he adop ion and
e ec i eness o esg p ac ices. Fi ms ope a ing in en i onmen s wi h s ingen egula o y amewo ks a e
mo e likely o engage in esg ac i i ies due o highe compliance equi emen s and he ele a ed cos s
o non-compliance. Fu he mo e, s ong go e nance mechanisms ensu e anspa ency and accoun abili y,
p omp ing i ms o in eg a e esg conside a ions in o hei s a egic planning.
he heo e ical li e a u e indica es ha in coun ies wi h s ong egula o y amewo ks and e ec i e
go e nance, i ms a e mo e inclined o adop comp ehensi e esg p ac ices due o s ingen compliance
equi emen s and inc eased accoun abili y (singhania & saini, 2022). hese ins i u ional condi ions os e
a suppo i e en i onmen ha unde sco es he impo ance o esg ini ia i es, he eby ampli ying hei
posi i e e ec s on i m pe o mance. e ec i e egula ions and go e nance sys ems mi iga e unce ain ies
and isks associa ed wi h esg in es men s (singhania & saini, 2022), acili a ing i ms’ esou ce alloca ion
owa ds sus ainable p ac ices. Addi ionally, obus ins i u ional amewo ks o en o e incen i es like ax
bene i s, subsidies, o access o g een inancing, which u he mo i a e i ms o pu sue esg goals.
consequen ly, i ms in such en i onmen s can achie e be e ope a ional e iciencies, imp o ed epu a-
ions, and enhanced inancial pe o mance h ough hei esg e o s.
in con as , i ms in coun ies wi h weake egula o y quali y and go e nance may encoun e di icul-
ies in e ec i ely implemen ing esg p ac ices (Mooneeapen e al., 2022), leading o inconsis en impac s
on pe o mance. Weak egula o y en i onmen s may lack p ope en o cemen mechanisms, allowing
i ms o bypass esg p ac ices wi hou acing subs an ial penal ies (Yee e al., 2014). his can c ea e a
compe i i e disad an age o i ms ha olun a ily in es in esg ini ia i es, as hey may incu highe
cos s wi hou co esponding bene i s. Mo eo e , ine ec i e go e nance can lead o issues such as co -
up ion, lack o anspa ency, and inadequa e s akeholde engagemen , unde mining he po en ial posi-
i e impac s o esg p ac ices. in hese con ex s, i ms migh adop supe icial esg measu es mainly o
symbolic pu poses a he han o achie e subs an i e en i onmen al and social ou comes, hus limi ing
he o e all e ec i eness o hei esg s a egies.
ins i u ional heo y also in oduces he concep o ins i u ional isomo phism. his sugges s ha
i ms wi hin he same ins i u ional con ex end o adop simila p ac ices o gain legi imacy and
con o m o socie al expec a ions (pal & ojha, 2017). in AseAn coun ies, whe e egula o y and go -
e nance s uc u es can a y signi ican ly, his s udy’s ocus on hese mode a ing ac o s p o ides alu-
able insigh s in o how di e ences in ins i u ional en i onmen s in luence he ela ionship be ween
esg p ac ices and i m pe o mance. ins i u ional isomo phism can occu h ough coe ci e, mime ic,
o no ma i e mechanisms. coe ci e isomo phism a ises om legal and egula o y p essu es, mime ic
isomo phism esul s om i ms imi a ing success ul pee s, and no ma i e isomo phism s ems om
p o essional s anda ds and no ms (liu e al., 2018). unde s anding hese mechanisms helps explain
why i ms in di e en AseAn coun ies may display a ying le els o esg commi men and pe o -
mance, shaped by hei speci ic ins i u ional con ex s.
ins i u ional heo y p o ides a comp ehensi e amewo k o unde s anding he impo an ole o
ex e nal ins i u ional ac o s in shaping he e ec i eness o esg p ac ices. his s udy adds o he he-
o e ical li e a u e by examining how egula o y quali y and go e nmen e ec i eness mode a e he
in luence o ins i u ional dimensions on he ex en o which esg p ac ices can enhance i m pe o -
mance in he AseAn con ex . his heo e ical pe spec i e unde sco es he impo ance o c ea ing sup-
po i e ins i u ional en i onmen s ha encou age and incen i ize sus ainable business p ac ices.
policymake s and co po a e leade s can use hese insigh s o design and implemen policies and s a -
egies ha p omo e s onge esg engagemen , ul ima ely os e ing sus ainable de elopmen and eco-
nomic g ow h in he AseAn egion.
4. Li e a u e e iew and hypo hesis de elopmen
4.1. En i onmen al pe o mance and i m pe o mance
companies ha emb ace en i onmen ally sus ainable p ac ices ul ill hei e hical and legal obliga ions,
while also imp o ing hei compe i i eness and s akeholde ela ionships. Focusing on en i onmen al
6 s. hAnDoYo AnD s. AnAs
sus ainabili y allows i ms o enhance hei o e all pe o mance and epu a ion, leading o long- e m
success and p o i abili y ( alen ino , 2023). he connec ion be ween en i onmen al p ac ices and pe -
o mance is in ica e and mul i ace ed. in es men s in sus ainabili y can ini ially s ain inancial esou ces,
and no all s akeholde s place equal impo ance on en i onmen al s ewa dship (Ye & Dela, 2023).
ne e heless, mos li e a u e suppo s ha s a egically aligning en i onmen al pe o mance wi h s ake-
holde expec a ions can yield nume ous bene i s. his s a egic app oach can help companies mi iga e
isks, d i e inno a ion, and c ea e alue, ul ima ely p o iding a sus ainable compe i i e edge o e hei
pee s ( an e al., 2022). Mo eo e , en i onmen al pe o mance signi ican ly in luences a i m’s speed o
adjus men (soA) o a ge le e age mo e so han social and go e nance pe o mance (Adeneye e al.,
2023). he e o e, i ms should adop a s akeholde -o ien ed app oach, aligning hei s a egies wi h
s akeholde demands o achie e posi i e en i onmen al and inancial ou comes. his highligh s he
necessi y o conside ing s akeholde s’ needs when designing and implemen ing en i onmen al
ini ia i es.
he en i onmen al aspec o esg ela es o how a company a ec s he na u al wo ld. his in ol es
managing was e, educing ca bon oo p in , conse ing esou ces, and aking ac ion o add ess clima e
change. in ecen yea s, businesses ha e ealized he signi icance o en i onmen al sus ainabili y because
o p essu e om s akeholde s and he unde s anding ha good en i onmen al managemen can esul
in posi i e inancial pe o mance. se e al s udies ha e ound a posi i e connec ion be ween en i onmen-
al and inancial success. Fo ins ance, ha and Ahuja (1996) and amana han (2018) ound ha i ms
wi h p oac i e en i onmen al s a egies o en expe ience be e inancial pe o mance, po en ially due o
was e educ ion and inc eased inno a ion e iciency. simila ly, esea ch by King and lenox (2002) and
nasee e al. (2023) sugges s ha s ong en i onmen al pe o mance can enhance compe i i e ad an-
age and inancial ou comes. good en i onmen al pe o mance can p o ec agains epu a ional isks,
especially in en i onmen ally sensi i e indus ies (pinei o-chousa e al., 2017). Fi ms ha ac i ely manage
and imp o e hei en i onmen al impac can bene i om cos sa ings, inno a ion, and new ma ke
oppo uni ies ( asileiou e al., 2022). Fo example, educing ene gy consump ion can lead o lowe ope -
a ional cos s.
on he o he hand, poo en i onmen al pe o mance can esul in signi ican epu a ional and inan-
cial damage ( en ou i e al., 2023). companies wi h poo en i onmen al eco ds may ace penal ies, ines,
and egula o y ac ions, ad e sely a ec ing hei inancial pe o mance (Ma ozza e al., 2019). Addi ionally,
poo en i onmen al p ac ices can damage a company’s epu a ion, leading o long- e m nega i e e ec s
on sales, p o i abili y, and sha e alue (Kuma , 2018). companies a e inc easingly ecognizing he impo -
ance o sus ainable p ac ices in hei supply chains. implemen ing g een supply chains o en leads o
educed cos s and isks, enhancing inancial pe o mance (Zeng e al., 2022). en i onmen ally esponsible
i ms o en enjoy highe cus ome loyal y, ansla ing in o be e sales and p o i s (gode oi -Winkel e al.,
2022). esea ch by sen and Bha acha ya (2001) indica es ha co po a e social esponsibili y, including
en i onmen al e o s, signi ican ly in luences cus ome eac ions. Addi ionally, in es o s a e inc easingly
conside ing esg ac o s when making in es men decisions (pa k & Jang, 2021).
Hypo hesis 1: En i onmen al pe o mance is posi i ely associa ed wi h i m pe o mance.
4.2. Social pe o mance and i m pe o mance
using he s akeholde heo y amewo k, i ms ha e ec i ely engage wi h hei s akeholde s and in es
in socially esponsible ini ia i es can achie e supe io inancial pe o mance, enhanced epu a ion, and a
compe i i e edge (ped ini & Fe i, 2019). his posi i e ela ionship is due o he social capi al and good-
will gene a ed by e hical and socially esponsible p ac ices, which os e s akeholde us and loyal y,
po en ially educing isks and imp o ing ope a ional e iciencies ( ing e al., 2019). howe e , his associ-
a ion is complex, and i s impac can depend on ac o s such as i m size, indus y, coun y, and speci ic
aspec s o social pe o mance being measu ed (elmghaamez e al., 2023)
he body o empi ical esea ch on he ela ionship be ween social and i m pe o mance e eals a mix
o suppo i e and nuanced indings. s udies like hose by licand o e al. (2024), Kim and li (2021), and
Maqbool and Bak (2019) gene ally indica e a posi i e ela ionship, sugges ing ha highe social
cogen Business & MAnAgeMen 7
pe o mance co ela es wi h be e inancial ou comes, possibly due o enhanced co po a e epu a ion
and s akeholde sa is ac ion. howe e , he s eng h and di ec ion o his ela ionship may a y signi i-
can ly ac oss di e en indus ies and egions. Fo example, A ian e al. (2023) and Zaiane and ellouze
(2023) ound ha he posi i e impac o social pe o mance on i m pe o mance is mo e no iceable in
consume - acing indus ies, whe e consume pe cep ions ha e a di ec e ec on sales and p o i abili y.
con e sely, s udies such as c is ina and i a (2020) and Alshehhi e al. (2018) o e a c i ical pe spec i e,
sugges ing ha he ela ionship may show diminishing e u ns, whe e he cos o social ini ia i es e en-
ually ou weighs he inancial bene i s.
he social aspec o esg concen a es on how a company handles i s in e ac ions wi h employees,
supplie s, cus ome s, and he b oade communi y (Becche i e al., 2022). his includes labo s anda ds,
heal h and sa e y, communi y de elopmen , and cus ome ela ions (Bou ounou e al., 2023). companies
wi h s ong social p ac ices o en see bene i s like inc eased employee mo ale, educed u no e , and
s onge cus ome loyal y (chang e al., 2021). posi i e communi y ela ions can also enhance a company’s
epu a ion, po en ially d i ing sales and p o i abili y (Malik, 2015). con e sely, poo labo p ac ices can
lead o s ikes, lawsui s, and educed p oduc i i y (Dahan e al., 2023). igno ing cus ome and communi y
conce ns can damage a b and’s image, leading o los sales and educed ma ke sha e (We he & chandle ,
2005). socially esponsible business p ac ices can lead o be e ope a ional e iciency, imp o ed s ake-
holde ela ionships, and enhanced epu a ion, which can, in u n, boos inancial ou comes.
some esea che s a gue ha social esponsibili y does no always ansla e in o be e inancial esul s.
McWilliams and siegel (2000) sugges ha i ms migh engage in socially esponsible ac i i ies o ea-
sons o he han inancial e u ns, such as esponding o s akeholde p essu e o complying wi h egula-
ions. Ba ne and salomon (2006) p opose a u-shaped ela ionship, indica ing ha he e migh no be
signi ican inancial gains a mode a e le els o social pe o mance. howe e , as i ms inc ease hei com-
mi men o social pe o mance, hey can achie e be e inancial esul s by de eloping supe io s ake-
holde ela ionships and gaining epu a ional bene i s.
Hypo hesis 2: Social pe o mance is posi i ely associa ed wi h i m pe o mance.
4.3. Go e nance pe o mance and i m pe o mance
co po a e go e nance encompasses a company’s s uc u e and managemen , including he makeup o
he boa d, execu i e compensa ion, and sha eholde igh s. e ec i e co po a e go e nance can esul in
imp o ed decision-making, a dec eased isk o scandals, and enhanced us among sha eholde s and
o he s akeholde s (de illie s & Dimes, 2021). Fi ms wi h s ong go e nance s uc u es o en bene i
om imp o ed access o capi al ma ke s and educed capi al cos s (huo e al., 2021). con e sely, poo
go e nance can esul in mismanagemen , inancial i egula i ies, and a loss o sha eholde us ( el e,
2023). scandals s emming om inadequa e go e nance can ha m sha eholde alue and cause las ing
damage o he o ganiza ion’s epu a ion.
s akeholde -o ien ed go e nance s uc u es and p ac ices, such as implemen ing e hical guidelines,
s akeholde engagemen policies, and anspa ency measu es, can signi ican ly enhance i m pe o mance.
hese p ac ices build us , educe agency cos s, and acili a e e icien esou ce alloca ion (Dao & phan,
2023). Mo eo e , di e se and s a egically composed boa ds can be e add ess s akeholde needs and
expec a ions, he eby posi i ely impac ing i m pe o mance (simionescu e al., 2021). howe e , he ela-
ionship be ween go e nance p ac ices and i m pe o mance is complex and con ex -dependen , a ying
ac oss di e en o ganiza ional, cul u al, and egula o y en i onmen s (handoyo, 2023; handoyo e al., 2023)
empi ical e idence om Alsayegh e al. (2020) suppo s he no ion ha i ms wi h highe go e nance
s anda ds make mo e e icien in es men decisions, achie e be e ope a ional pe o mance and engage
in s a egic ac i i ies aligned wi h long- e m alue c ea ion o s akeholde s. howe e , he li e a u e also
no es ha he go e nance-pe o mance ela ionship a ies ac oss di e en con ex s. Fac o s like i m size,
indus y sec o , and he legal and egula o y en i onmen play media ing oles. Fo example, ghab i
(2022) sugges s ha he impac o go e nance on i m pe o mance is mo e p onounced in en i on-
men s wi h s onge in es o p o ec ions. Addi ionally, s udies by Baa ou and Ben saada (2022) and
Kabi e al. (2023) emphasize he global di e si y in go e nance p ac ices, indica ing ha cul u al and
14 s. hAnDoYo AnD s. AnAs
Fo e u n on Asse s ( oA), en i onmen al ac o s ha e a signi ican nega i e e ec (-0.00209,
p = 0.002). con e sely, social ac o s ha e a signi ican posi i e impac (0.00207, p = 0.005), indica ing ha
be e social p ac ices lead o highe e u ns on asse s. go e nance ac o s ha e a nega i e e ec on
oA, al hough his e ec is no s a is ically signi ican (-0.00045, p = 0.407).
go e nmen e ec i eness has a posi i e and signi ican e ec on oA (0.00171, p = 0.005), highligh -
ing he impo ance o e ec i e go e nance o be e i m pe o mance. he in e ac ion be ween en i-
onmen al ac o s and go e nmen e ec i eness is posi i e and signi ican (0.00002, p = 0.001), sugges ing
ha he nega i e impac o en i onmen al ac o s on oA is lessened in coun ies wi h highe go e n-
men e ec i eness. con e sely, he in e ac ion be ween social ac o s and go e nmen e ec i eness is
nega i e and signi ican (-0.00002, p = 0.011), indica ing ha he posi i e impac o social ac o s on oA
is sligh ly educed in such coun ies. he in e ac ion be ween go e nance ac o s and go e nmen e ec-
i eness is no signi ican (0.0000, p = 0.341).
o e all, able 5 illus a es he complex ela ionships be ween esg ac o s and i m pe o mance, wi h
go e nmen e ec i eness playing a signi ican mode a ing ole in se e al ins ances. e ec i e go e nance
gene ally enhances he posi i e impac s o esg ac o s on i m pe o mance, pa icula ly o go e nance
and social ac o s. howe e , he speci ic e ec s a y ac oss di e en pe o mance me ics, indica ing ha
he in luence o esg ac o s and go e nmen e ec i eness is mul i ace ed and con ex -dependen .
6.3. Endogenei y es
o de e mine i he model is endogenous, we mus examine he esul s o he endogenei y es shown
in able 6. his able includes da a om baseline eg essions and ins umen al a iable (i ) eg essions
wi h di e en endogenei y speci ica ions. he independen a iables a e en i onmen al pe o mance,
social pe o mance, go e nance pe o mance, and i m size, while he dependen a iable is he ne
p o i Ma gin (npM). he ins umen al a iables accoun o he e ec s o coun y, indus y, and yea .
in he baseline eg ession, he coe icien o en i onmen al pe o mance is -0.0014 wi h a p- alue o
0.598, indica ing i is no s a is ically signi ican . simila ly, in he i eg ession, whe e en i onmen al pe -
o mance is ea ed as an endogenous a iable, he coe icien is -0.0079 wi h a p- alue o 0.351, also
showing no s a is ical signi icance. his lack o signi icance in bo h he baseline and i eg essions sug-
ges s ha en i onmen al pe o mance does no signi ican ly impac npM in his model.
When social pe o mance is ea ed as an endogenous a iable, he baseline eg ession shows a coe -
icien o 0.0023 wi h a p- alue o 0.443, indica ing no s a is ical signi icance. in he i eg ession, he
coe icien o social pe o mance is 0.0062 wi h a p- alue o 0.341, which is also no s a is ically signi i-
can . his consis ency be ween he baseline and i eg ession esul s sugges s ha social pe o mance
does no signi ican ly in luence npM, and endogenei y migh no be a majo conce n o his a i-
able ei he .
go e nance pe o mance consis en ly demons a es a signi ican impac . in bo h he s anda d and i
eg essions, he coe icien s a e s a is ically signi ican , wi h p- alues o 0.018, 0.011, and 0.012, indica ing
a no able posi i e in luence on npM. his consis ency in indings sugges s ha go e nance pe o mance
has a obus and eliable e ec on npM ac oss a ious model speci ica ions.
Table 5. Mode a ing e ec o go e nmen e ec i eness.
nPM oPM Roa
en i onmen al pe o mance (eP) −0.02018 (0.082) −0.00980 (0.592) −0.00209 (0.002)
social pe o mance (sP) 0.01674 (0.178) 0.05461 (0.005) 0.00207 (0.005)
go e nance pe o mance (gP) 0.01876 (0.045) −.050361 (0.001) −0.00045 (0.407)
go e nmen e ec i eness 0.02877 (0.006) .020149 (0.218) 0.00171 (0.005)
eP* go e nmen e ec i eness 0.00025 (0.100) .000126 (0.602) 0.00002 (0.001)*
sP* go e nmen e ec i eness −0.00019 (0.241) −0.00062 (0.019)* −0.00002 (0.011)*
gP*go e nmen e ec i eness −0.00019 (0.114) 0.00060 (0.019)* 0.0000 (0.341)
Coun y e ec Yes Yes Yes
indus y e ec Yes Yes Yes
Yea e ec Yes Yes Yes
obse a ions 1755 1755 1755
g oup 360 360 360
R-squa e 0.0214 0.0252 0.0886
cogen Business & MAnAgeMen 15
Based on he esul s in able 6, endogenei y does no appea o be a signi ican issue o en i on-
men al and social pe o mance in hese models. he simila esul s be ween he baseline and i eg es-
sions imply ha he ins umen s (coun y e ec , indus y e ec , yea e ec ) e ec i ely con ol o
po en ial endogenei y. howe e , he low -squa ed alues sugges he need o u he in es iga ion in o
o he ac o s ha migh in luence npM. in conclusion, while go e nance pe o mance shows a consis en
and signi ican impac on npM, en i onmen al and social pe o mance do no appea o be subs an ially
endogenous in his con ex .
6.4. Discussion
6.4.1. The di ec e ec o en i onmen al pe o mance on i m pe o mance
he common belie is ha he e is a posi i e co ela ion be ween a company’s en i onmen al pe o -
mance and i s inancial pe o mance. he s akeholde heo y amewo k sugges s ha in es ing in en i-
onmen al p ac ices can enhance a company’s epu a ion, mee s akeholde demands, and p o ide a
compe i i e ad an age, ul ima ely leading o be e inancial pe o mance. howe e , he nega i e ela-
ionship obse ed be ween en i onmen al pe o mance and inancial i m pe o mance could indica e
ha he e a e unde lying ac o s, such as he ade-o heo y, ha a e no ully unde s ood. he ade-o
heo y posi s ha he cos s associa ed wi h imp o ing en i onmen al pe o mance may ou weigh he
inancial bene i s in he sho e m (co dei o & sa kis, 1997; Deng e al., 2016). he e o e, companies
should conside he long- e m impac o hei en i onmen al p ac ices on hei inancial pe o mance
mo e ca e ully. he ela ionship be ween en i onmen al and inancial pe o mance is mo e complex han
p e iously belie ed.
ex ensi e esea ch has examined he ela ionship be ween en i onmen al pe o mance and inancial
ou comes, bu he indings a e mixed. some s udies sugges ha sus ainable p ac ices can lead o inan-
cial bene i s (Kim & li, 2021; licand o e al., 2024). in con as , o he s, like his s udy, indica e ha imple-
men ing such measu es can in ol e signi ican cos s and in es men s ha may no be o se by e enue
inc eases in he sho e m, esul ing in a nega i e inancial impac (liu & Wu, 2023; Ye & Dela, 2023).
his implies he necessi y o a ho ough analysis ha conside s a ious ac o s such as he speci ic
indus y sec o , geog aphical loca ion, and s a egic o ien a ion (handoyo e al., 2023). such an analysis
is c ucial o ully unde s anding he inancial consequences o en i onmen al e o s.
in examining he AseAn egion, i becomes clea ha apid economic g ow h has led o a su ge in
indus ial ac i i ies, no all o which a e eco- iendly. consequen ly, businesses in he egion may iew
en i onmen ally sus ainable p ac ices as po en ial impedimen s o hei expansion. swi ching o cleane
and mo e sus ainable p ocesses o en equi es signi ican in es men and may esul in sho - e m inan-
cial losses.
he s udy conduc ed in his speci ic con ex p o ides aluable insigh s in o why en i onmen al pe -
o mance may nega i ely impac inancial ou comes. he s udy indica es ha a ious ac o s, such as
egula o y equi emen s, ma ke dynamics, consume p e e ences, and compe i i e p essu es, can all
in luence his ela ionship (i aldo e al., 2011). in egions o sec o s wi h s ic en i onmen al egula ions,
Table 6. endogenei y es .
Base line eg ession
ins umen al a iable (iV) eg ession
endogenous* endogenous**
nPM nPM nPM
en i onmen al pe o mance* −0.0014 (0.598) −0.0079 0.351 0.0021 0.715
social pe o mance** 0.0023 (0.443) 0.0062 0.341 −0.0050 0.595
go e nance pe o mance 0.0049 (0.018) 0.0054 0.011 0.0057 0.012
size 0.04631 (0.781) 0.0770 0.630 0.0781 0.627
Coun y e ec (iV) Yes Yes Yes
indus y e ec (iV) Yes Yes Yes
Yea e ec (iV) Yes Yes Yes
Model Fixed e ec Fixed e ec Fixed e ec
obse a ions 1755 1755 1755
g oup 360 360 360
R-squa e 0.013 0.0013 0.0013
16 s. hAnDoYo AnD s. AnAs
complying wi h hese equi emen s can become a signi ican inancial bu den ha a ec s inancial pe -
o mance (ea nha , 2018). simila ly, in ma ke s wi h minimal demand o en i onmen ally sus ainable
p oduc s, in es ing in en i onmen al sus ainabili y may no yield he expec ed inancial e u ns due o a
lack o ma ke di e en ia ion (hun e al., 2004). A s udy by o azalin e al. (2024) indica es ha i ms may
adop sus ainabili y ini ia i es symbolically o c ea e posi i e imp essions among s akeholde s and p o-
ec hei legi imacy. By unde s anding hese ac o s, businesses can make well-in o med decisions abou
balancing hei en i onmen al and inancial goals.
Findings om his s udy sugges ha i ms p io i izing en i onmen al pe o mance may expe ience a
sligh d op in hei immedia e inancial e u ns. his could be due o he ini ial cos s o implemen ing
eco- iendly p ac ices, which may no be immedia ely o se by inancial gains. howe e , in he long un,
i ms ha p io i ize en i onmen al pe o mance may enjoy g ea e inancial bene i s, such as imp o ed
b and epu a ion, inc eased cus ome loyal y, and educed ope a ing cos s. e en hough his inding is
no consis en wi h he ini ial p edic ion, i aligns wi h p e ious s udies conduc ed by hassel e al. (2005)
and Walke and Wan (2012). elsayed and pa on (2005) also ound ha en i onmen al pe o mance has a
neu al impac on i m pe o mance. his can be a ibu ed o he high up on in es men in imple-
men ing en i onmen ally iendly ini ia i es and echnologies. While some en i onmen al ini ia i es migh
impose sho - e m cos s on businesses, hey could lead o long- e m inancial bene i s by mi iga ing
po en ial en i onmen al isks and apping in o g een ma ke oppo uni ies.
6.4.2. The di ec e ec o social pe o mance on i m pe o mance
he s udy ound no signi ican co ela ion be ween social pe o mance and inancial i m pe o mance,
al hough his was no s a is ically signi ican . his esul con as s wi h he p inciples o s akeholde he-
o y, which posi s ha companies can achie e be e ou comes by e ec i ely managing ela ionships wi h
key s akeholde s. A i m’s social pe o mance, which e lec s i s e hical and esponsible beha io owa d
s akeholde s, can signi ican ly in luence i s o e all success and inancial iabili y. Building s ong ela ion-
ships wi h s akeholde s can lead o bene i s such as inc eased cus ome loyal y, imp o ed employee
mo ale and p oduc i i y, and be e supplie ela ions (B idges & ha ison, 2003; Koeswayo e al., 2024).
Al hough hese bene i s may no be immedia ely quan i iable in inancial e ms, hey con ibu e o he
i m’s long- e m inancial pe o mance. he s udy’s non-signi ican inding sugges s ha while social pe -
o mance may no yield immedia e inancial gains, i has he po en ial o long- e m inancial bene i s by
os e ing s ong s akeholde ela ionships ( u e al., 2001)
he indings indica e ha social pe o mance does no signi ican ly in luence i m pe o mance, which
is su p ising gi en ha nume ous s udies, such as hose by eccles e al. (2014) and shakil e al. (2019),
ha e shown a posi i e co ela ion be ween co po a e social esponsibili y (cs ) and inancial pe o mance.
one plausible explana ion o his inding is ha he AseAn egion has unique sociocul u al dynamics,
making he bene i s o social ini ia i es mo e in angible and long- e m, and hus no immedia ely e lec ed
in oA. howe e , his esul is consis en wi h p e ious s udies by Makni e al. (2009) and Kong e al.
(2020). he cul u al di e si y wi hin AseAn, including a ying e hnici ies, eligions, and socioeconomic
condi ions, may a ec how well social pe o mance ansla es in o inancial pe o mance o i ms. unlike
Wes e n con ex s, whe e social esponsibili y may di ec ly in luence i m ou comes, AseAn companies
ope a e in a mo e complex en i onmen ha equi es a nuanced app oach o social pe o mance.
he e o e, he e u n on in es men ( oi) om social ini ia i es should be measu ed no only inancially
bu also by non- inancial pa ame e s such as communi y us , employee mo ale, o b and epu a ion.
Ano he explana ion o he lack o a signi ican associa ion be ween social pe o mance and i m
pe o mance could be he mo i a ion behind engaging in he social pilla s o esg. compliance wi h he
social pilla s o esg may be d i en by mo al mo i es o ex e nal p essu es McWilliams and siegel (2000).
in such cases, i ms migh engage in socially esponsible ac i i ies due o s akeholde p essu e o egu-
la o y compliance a he han pu ely inancial mo i es. Addi ionally, Ba ne and salomon (2006) p o-
posed a u-shaped ela ionship be ween social pe o mance and inancial gains. hey sugges ha he e
migh be no signi ican inancial gains a mode a e le els o social pe o mance, implying ha i ms
could see inancial bene i s only when hey signi ican ly in es in social ini ia i es. his pe spec i e can
help businesses make in o med decisions ega ding esou ce alloca ion owa d social pe o mance
ini ia i es.
cogen Business & MAnAgeMen 17
empi ical s udies examining he ela ionship be ween social pe o mance and inancial ou comes
epo a wide ange o esul s, highligh ing he complexi y o measu ing he impac o cs ini ia i es.
he mixed esul s in he li e a u e a e due o di e ences in me hodologies, ime ames, and con ex s,
making i challenging o cap u e he nuanced e ec s o social pe o mance on inancial ou comes
(odu o e al., 2022). he success o a company’s social ini ia i es hea ily depends on i s ope a ing en i-
onmen . Fac o s such as indus y no ms, egula o y expec a ions, and socie al alues signi ican ly in lu-
ence how s akeholde s pe cei e a company’s social beha io . hese ac o s shape s akeholde
expec a ions and pe cep ions, de e mining he impo ance hey place on a company’s social pe o -
mance. in con ex s whe e s akeholde s highly alue social pe o mance, companies a e mo e likely o
see signi ican bene i s om hei cs ac i i ies. howe e , in con ex s whe e such expec a ions a e low
o whe e he inancial implica ions o cs a e less di ec , he bene i s may no be immedia ely isible
in inancial me ics.
6.4.3. The di ec e ec o go e nance pe o mance on i m pe o mance
s akeholde heo y emphasizes he impo ance o conside ing he in e es s o all s akeholde s o achie e
o ganiza ional success (F eeman, 1984). he esea ch indings indica e ha e hical and comp ehensi e
go e nance p ac ices signi ican ly con ibu e o be e inancial ou comes. When inancial i ms p io i ize
he well-being o a b oad ange o s akeholde s, including employees, cus ome s, supplie s, and he
communi y, hey can enhance hei epu a ion, manage isks mo e e ec i ely, and ul ima ely achie e
supe io inancial pe o mance. his unde sco es he c i ical need o in eg a ing s akeholde conside -
a ions in o he go e nance amewo ks o inancial ins i u ions, aligning wi h global ends owa ds co -
po a e social esponsibili y and e hical business conduc . p io i izing s akeholde wel a e is essen ial o
inancial i ms o achie e long- e m success while os e ing a posi i e socie al impac .
hese indings align wi h p e ious s udies by A o a and sha ma (2016) and Achim e al. (2015), which
ound ha companies wi h obus go e nance mechanisms gene ally exhibi highe inancial pe o -
mance. empi ically, his s udy adds o he g owing body o li e a u e examining he impac o go e -
nance on i m pe o mance, pa icula ly wi hin inancial ins i u ions. By demons a ing a posi i e and
signi ican ela ionship, he s udy ein o ces he no ion ha e ec i e go e nance is a key d i e o inan-
cial success. his con ibu ion is i al o bo h heo e ical de elopmen and p ac ical applica ion, sugges -
ing a eas o u he esea ch, such as iden i ying speci ic go e nance p ac ices ha a e mos e ec i e in
enhancing i m pe o mance. Mo eo e , i p o ides empi ical suppo o he a gumen ha adop ing
obus go e nance amewo ks can lead o be e inancial ou comes, o e ing a conc e e basis o i ms
o p io i ize go e nance e o ms as pa o hei s a egic planning p ocesses.
he s udy’s indings a e based on he unique and di e se con ex o AseAn, a egion ha encom-
passes a wide ange o economic, poli ical, and cul u al en i onmen s. Despi e he a ying egula o y
amewo ks and co po a e go e nance models wi hin he egion, he s udy clea ly demons a es he
undeniable ad an ages o e ec i e go e nance in d i ing inancial i m success. he s udy’s conclusions
ha e signi ican implica ions o policymake s and egula o s in AseAn, who ace he challenge o ha -
monizing go e nance s anda ds o p omo e economic in eg a ion and enhance he egion’s compe i i e-
ness. By doing so, AseAn can unlock i s ull po en ial, maximize economic g ow h, and pa e he way o
a b igh e and mo e p ospe ous economic u u e.
he implica ions o his s udy’s indings a e signi ican and a - eaching. F om an economic pe spec-
i e, hey highligh he c i ical impo ance o good go e nance in s eng hening i m alue and con ib-
u ing o b oade economic s abili y and g ow h, pa icula ly in he inancial sec o , whe e sound
go e nance can ac as a sa egua d agains inancial c ises. he s udy also en iches academic discou se
on co po a e go e nance, o e ing esh insigh s in o go e nance’s a ied impac s, which could inspi e
u he esea ch in his a ea. he e a e abundan oppo uni ies o esea che s o explo e he e ec s o
go e nance ac oss di e en indus ies and egions and o add ess eme ging go e nance challenges. on
he policy on , he s udy emphasizes he need o policymake s o de elop and en o ce s ingen go -
e nance s anda ds. in he AseAn egion, his p esen s a unique oppo uni y o adop and implemen
go e nance bes p ac ices ha can enhance he egion’s global economic compe i i eness. policymake s
can le e age hese insigh s o push o go e nance e o ms ha no only enhance he anspa ency and
accoun abili y o inancial i ms bu also a ac mo e global in es o s o AseAn ma ke s.
18 s. hAnDoYo AnD s. AnAs
6.4.4. The mode a ing e ec o egula o y quali y
he s eng h o a coun y’s egula o y amewo k signi ican ly impac s he ela ionship be ween en i-
onmen al pe o mance and i m pe o mance. his suppo s he heo y ha ex e nal en i onmen al
ac o s, such as egula o y amewo ks, a e c ucial in de e mining he success o o ganiza ional s a -
egies. i sugges s ha he egula o y en i onmen can ei he enhance o diminish he impac o
en i onmen al pe o mance on i m success, highligh ing he impo ance o aligning i m s a egies
wi h ex e nal condi ions. con e sely, he lack o mode a ing e ec s on social and go e nance pe o -
mance implies ha hese dimensions migh be in luenced by a b oade se o ac o s beyond egu-
la o y quali y, in i ing u he in es iga ion in o he a iables a ec ing hese ela ionships. ou
indings e eal a signi ican mode a ing ole o egula o y quali y in he posi i e ela ionship be ween
en i onmen al and i m pe o mance. his aligns wi h he asse ion by cla k e al. (2015), who ound
ha i ms wi h obus esg p ac ices, especially in s ingen egula o y en i onmen s, end o ou pe -
o m hei coun e pa s in he long un. e ec i e egula o y en i onmen s compel i ms o adop
p oac i e en i onmen al s a egies ha mi iga e isks and c ea e compe i i e ad an ages, leading o
enhanced inancial pe o mance (po e & an de linde, 1995). his s udy highligh s he s ong link
be ween en i onmen al and i m pe o mance, especially when e ec i e egula ion is p esen . his
aligns wi h he global emphasis on sus ainabili y as bo h a mo al and business impe a i e. eccles
e al. (2014) a gued ha i ms embedding obus sus ainabili y p ac ices, pa icula ly in egions wi h
s ong egula o y o e sigh , o en ha e an edge o e hei pee s ega ding long- e m alue c ea ion.
such egula o y en i onmen s a e likely o incen i ize companies in AseAn o adop s a egic en i-
onmen al p ac ices, acili a e isk mi iga ion, and os e inno a i e app oaches ha lead o sus ain-
able g ow h (ha , 1995).
he s udy ound ha coun y egula o y quali y nega i ely mode a es he ela ionship be ween social
pe o mance and i m pe o mance. p e ious s udies ha e highligh ed ha social pe o mance is mul i-
ace ed, and i s impac on i ms a ies based on egional di e ences (Ma golis & Walsh, 2003). When
conside ing egula o y quali y, he ela ionship be ween social and i m pe o mance is complex. social
pe o mance o en in e wines wi h egional sociocul u al nuances (Aguile a e al., 2007). in he AseAn
con ex , alignmen wi h b oade socie al o cul u al impe a i es may impac inancial ou comes mo e
han s ic egula ions. social pe o mance, which includes ac i i ies like en i onmen al s ewa dship and
ai labo p ac ices, ypically aims o enhance a i m’s epu a ion and inancial ou comes. howe e , in
coun ies wi h high egula o y quali y, s ingen egula ions, and highe compliance cos s can o se he
inancial bene i s o social pe o mance. Fi ms in hese en i onmen s may no gain signi ican addi ional
legi imacy om social pe o mance due o exis ing p essu es o con o m o high s anda ds, and esou ces
may be di e ed o manda o y compliance a he han disc e iona y social ini ia i es. his esul s in a
weake posi i e impac o social pe o mance on i m pe o mance.
egula o y quali y deno es he e ec i eness o a coun y’s policies and egula ions in suppo ing
p i a e sec o de elopmen , cha ac e ized by clea , anspa en , and consis en ly en o ced egula ions
ha c ea e a s able business en i onmen . in coun ies wi h high egula o y quali y, s ong co po a e
go e nance p ac ices a e mo e c edible and us wo hy due o anspa en and en o ceable legal
amewo ks, enhancing in es o con idence and leading o inc eased in es men and imp o ed i m
pe o mance. high egula o y quali y ensu es igo ous en o cemen o go e nance s anda ds, educ-
ing agency p oblems and enhancing decision-making and ope a ional e iciency, con ibu ing posi-
i ely o i m pe o mance. Fi ms in coun ies wi h high egula o y quali y and s ong co po a e
go e nance a e o en iewed mo e a o ably by in es o s and inancial ins i u ions, leading o easie
access o capi al a lowe cos s, he eby imp o ing inancial pe o mance. Addi ionally, s ong co po-
a e go e nance in a high egula o y quali y en i onmen helps mi iga e isks associa ed wi h co up-
ion, aud, and mismanagemen , p o ec ing i m asse s and enhancing epu a ion and s abili y.
in es o s and s akeholde s in high egula o y quali y en i onmen s place signi ican alue on s ong
co po a e go e nance, leading o mo e a o able ma ke eac ions and boos ing s ock p ices and
o e all i m alua ion.
Findings in his s udy indica e ha he ela ionship be ween co po a e go e nance and i m pe o -
mance is mode a ed by coun y egula o y quali y. his inding is in line wi h p e ious s udies such as
cogen Business & MAnAgeMen 19
hose by Klappe and lo e (2004) and an and chin akananda (2016), which ound ha i ms in coun-
ies wi h s ong legal en i onmen s exhibi be e inancial pe o mance due o e ec i e go e nance
p ac ices. Addi ionally, he bene i s o good co po a e go e nance a e mo e p onounced in coun ies
wi h s ong egula o y amewo ks. Fi ms should p io i ize obus co po a e go e nance p ac ices in
high- egula o y quali y coun ies o le e age hese enhanced bene i s, in eg a ing s ong go e nance
in o co e s a egies o imp o e inancial pe o mance and in es o con idence. policymake s should con-
inue o s eng hen egula o y amewo ks o ensu e consis en en o cemen o co po a e go e nance
s anda ds, c ea ing a conduci e en i onmen o businesses o h i e and enhancing o e all economic
pe o mance. he mode a ing e ec o coun y egula o y quali y on he ela ionship be ween co po a e
go e nance and inancial pe o mance highligh s he signi ican ole ha a s ong egula o y en i on-
men plays in enhancing he bene i s o good co po a e go e nance, ensu ing ha go e nance p ac ices
a e c edible, educing isks, and imp o ing access o capi al, leading o be e inancial pe o mance.
unde s anding his dynamic is c ucial o i ms aiming o op imize hei go e nance and inancial ou -
comes in a ious egula o y con ex s.
6.4.5. The mode a ing e ec o go e nmen e ec i eness
he s udy’s key inding is ha go e nmen e ec i eness signi ican ly mode a es he ela ionship be ween
en i onmen al pe o mance and i m pe o mance. ou analysis shows ha companies can achie e
g ea e bene i s om sus ainable en i onmen al p ac ices when suppo ed by e ec i e go e nmen ins i-
u ions. his suppo can come om a o able policies, in as uc u e, and acili a ion. ou empi ical e i-
dence indica es a signi ican posi i e co ela ion be ween suppo i e go e nmen mechanisms and
imp o ed i m pe o mance. he e o e, companies mus align hei en i onmen al ini ia i es wi h a o -
able go e nmen policies o achie e he bes possible ou comes. p e ious esea ch by eccles and se a eim
(2013) sugges ed ha p oac i e en i onmen al measu es a e mo e impac ul when complemen ed by
syne gis ic go e nmen al policies and amewo ks. s udies a he na ional le el indica e ha a coun y
wi h e ec i e go e nmen is posi i ely associa ed wi h na ional en i onmen al pe o mance (Bas ija &
handoyo, 2019). in he AseAn con ex , coun ies wi h e ec i e go e nance can c ea e a conduci e en i-
onmen whe e businesses can h i e h ough sus ainable p ac ices.
ou esea ch e eals ha he ela ionship be ween a company’s social pe o mance and ou comes
is mo e complex han ini ially p esumed. We ind a sligh ly nega i e co ela ion be ween he wo
when conside ing he e ec i eness o he go e nmen . his unexpec ed esul necessi a es a mo e
in-dep h in es iga ion o he mul iple ac o s con ibu ing o social engagemen in he AseAn egion.
gi en he di e se social and cul u al backg ounds o AseAn coun ies, expec a ions may be highe in
coun ies wi h mo e e ec i e go e nmen s. consequen ly, balancing p o i -d i en objec i es wi h
socie al con ibu ions becomes mo e challenging and can unexpec edly impac a i m’s pe o mance.
in he unique sociocul u al en i onmen o he AseAn egion, high go e nmen e ec i eness may
lead o g ea e expec a ions o i ms o con ibu e o socie y, c ea ing mo e complica ed and some-
imes coun e in ui i e e ec s on i m pe o mance (chapple & Moon, 2005). his sugges s ha a
deepe , con ex -speci ic app oach is essen ial o unde s anding he in icacies o social pe o mance
wi hin he AseAn con ex .
he ela ionship be ween co po a e go e nance and i m pe o mance is signi ican ly in luenced by
he e ec i eness o he coun y’s go e nmen . obus go e nance mechanisms make i ms mo e capable
o ex ac ing maximum bene i s, hus educing he impac o go e nmen e ec i eness. la po a e al.
(2000) s a ed ha companies wi h obus go e nance amewo ks can maximize alue, o en inde-
penden ly o ex e nal ac o s like go e nmen e ec i eness. in coun ies wi h high go e nmen e ec i e-
ness, obus egula o y amewo ks and s ong en o cemen mechanisms ensu e ha good co po a e
go e nance ansla es in o imp o ed i m pe o mance. con e sely, in coun ies wi h low go e nmen
e ec i eness, weak egula o y amewo ks, and poo en o cemen unde mine co po a e go e nance,
diminishing i s posi i e impac on i m pe o mance. poli ical s abili y and ins i u ional quali y, bo h com-
ponen s o go e nmen e ec i eness, u he in luence his ela ionship. Fi ms in coun ies wi h s ong
ins i u ions and e ec i e go e nmen s bene i mo e om good co po a e go e nance p ac ices, while
hose in weake ins i u ional en i onmen s see less clea pe o mance bene i s.
20 s. hAnDoYo AnD s. AnAs
7. Conclusion
7.1. Summa y o inding
he s udy in es iga ed how en i onmen al, social, and go e nance (esg) pe o mance ela es o i m
pe o mance in he AseAn egion. i ocused on he in luence o coun y egula o y quali y and go e n-
men e ec i eness on his ela ionship. he esul s e ealed ha he di ec impac o en i onmen al and
social pe o mance on i m pe o mance is no signi ican . his indica es ha simply enhancing en i on-
men al and social s anda ds may no be enough o imp o e i m pe o mance in he AseAn egion.
he esea ch e ealed ha he quali y o go e nance signi ican ly boos s a company’s o e all pe o -
mance. his emphasizes he essen ial ole o obus go e nance sys ems, anspa en p ocesses, and clea
accoun abili y in d i ing business success. i highligh s he signi icance o adop ing e ec i e go e nance
p ac ices o imp o e i m pe o mance, s essing he need o companies o gi e p io i y o
go e nance- ela ed elemen s in o de o achie e be e esul s.
Mo eo e , he s udy ound ha he connec ions be ween en i onmen al and social pe o mance and
i m pe o mance a e g ea ly a ec ed by he quali y o egula ions and he e ec i eness o go e nmen
in a gi en coun y. in na ions wi h be e egula o y quali y and mo e e icien go e nmen s, he posi i e
impac o en i onmen al and social pe o mance on i m pe o mance becomes mo e e iden . his
emphasizes he impo ance o suppo i e egula o y amewo ks and e ec i e go e nmen p ac ices in
op imizing he ad an ages o esg (en i onmen al, social, and go e nance) ini ia i es.
Fu he mo e, he s udy indica es ha he connec ion be ween go e nance pe o mance and i m pe -
o mance is in luenced by he quali y o coun y-le el egula ions and he e ec i eness o he go e n-
men . his highligh s he signi icance o he egula o y and go e nance en i onmen in ampli ying he
posi i e impac o s ong go e nance p ac ices on i m pe o mance. companies ope a ing in a eas wi h
obus egula o y quali y and e icien go e nance a e expec ed o expe ience g ea e ad an ages om
hei go e nance e o s.
he indings indica e ha in he AseAn egion, while en i onmen al and social pe o mance may no
di ec ly impac i m pe o mance, hei posi i e e ec s become appa en in suppo i e egula o y and
go e nance en i onmen s. no ably, go e nance pe o mance s ands ou as a key de e minan o i m
success, wi h i s impac being u he s eng hened by he quali y o egula o y amewo ks and go e n-
men e ec i eness. he s udy unde sco es he impo ance o in eg a ing esg conside a ions wi hin
b oade ins i u ional con ex s o achie e op imal i m pe o mance.
7.2. Implica ions
he indings o his s udy ha e signi ican implica ions o a ious s akeholde s in he AseAn egion,
such as in es o s, egula o s, co po a e s a egis s, and businesses hemsel es. he s udy e eals a com-
plex ela ionship be ween esg me ics and i m pe o mance, indica ing he necessi y o a ailo ed
app oach o esg adop ion and epo ing. he s udy ound a nega i e co ela ion be ween en i onmen al
pe o mance and i m pe o mance, sugges ing ha while en i onmen ally sus ainable p ac ices a e c u-
cial, hey may ini ially impose inancial bu dens o equi e in es men s ha a ec sho - e m p o i abili y.
his emphasizes he need o i ms o balance hei en i onmen al ini ia i es wi h s a egic inancial plan-
ning o mi iga e any ad e se e ec s on i m pe o mance.
he lack o a signi ican impac o social pe o mance on i m pe o mance aises impo an ques ions
abou he di ec inancial bene i s o social ini ia i es. howe e , i is c ucial o ecognize ha social pe -
o mance plays a key ole in building long- e m s akeholde ela ionships and enhancing co po a e ep-
u a ion, which can indi ec ly bene i he i m o e ime. he e o e, companies should no o e look he
impo ance o social ini ia i es bu a he align hem mo e closely wi h hei co e business s a egies o
capi alize on po en ial long- e m gains. By doing so, companies can c ea e a posi i e and las ing impac
on socie y and he en i onmen while eaping long- e m inancial ewa ds.
co po a e go e nance encompasses he sys ems, p ocesses, and p ac ices ha a company u ilizes o
manage i s ope a ions and ensu e accoun abili y. esea ch has demons a ed ha he quali y o a i m’s
go e nance mechanisms signi ican ly impac s i s inancial pe o mance, highligh ing he impo ance o
cogen Business & MAnAgeMen 21
es ablishing obus go e nance s uc u es. companies can ealize conside able inancial gains by in es -
ing in enhancing hei go e nance p ac ices. his is especially c ucial o AseAn i ms, as hey should
p io i ize go e nance e o ms and emb ace bes p ac ices o imp o e hei inancial pe o mance and
appeal o mo e in es o s.
he s udy shows a s ong connec ion be ween a company’s en i onmen al pe o mance and i s inan-
cial pe o mance. his link is la gely a ec ed by he quali y o egula ions and he e ec i eness o he
go e nmen a he na ional le el. he esul s sugges ha a suppo i e egula o y amewo k and an
e icien go e nance sys em can help businesses seamlessly inco po a e en i onmen al sus ainabili y in o
hei ope a ions, leading o imp o ed pe o mance and g ow h. his unde sco es he i al ole o policy-
make s and egula o y bodies in c ea ing an en i onmen ha suppo s sus ainable business p ac ices
wi hou comp omising he company’s bo om line. he s udy highligh s he impo ance o businesses
aking esponsibili y o en i onmen al sus ainabili y and emphasizes he need o go e nmen suppo
in p omo ing a business- iendly en i onmen ha encou ages sus ainable p ac ices while also os e ing
g ow h and de elopmen .
he esea ch sugges s ha esg ini ia i es should be app oached in a nuanced and con ex -speci ic
manne , aking in o accoun he unique needs o companies ope a ing in he AseAn egion. he s udy
ecommends an in eg a ed app oach ha conside s he di e se impac s o en i onmen al, social, and
go e nance ac o s on i m pe o mance while also le e aging he suppo i e ole o egula o y ame-
wo ks and go e nmen e ec i eness. he insigh s om his s udy p o ide aluable in o ma ion o in es-
o s, egula o s, and co po a e s a egis s. hey can use his knowledge o make in o med decisions ha
align inancial pe o mance wi h sus ainable business p ac ices, ul ima ely con ibu ing o he long- e m
sus ainabili y and esilience o he AseAn economic landscape.
7.3. Limi a ions and a enues o u u e esea ch
i is impo an o ecognize ha his esea ch has a no able limi a ion ega ding he use o a wide ange
o inancial indica o s as a p oxy o i m pe o mance. he inconsis en indings among di e en inancial
indica o s aise conce ns abou obus ness. his omission may aise conce ns abou he eliabili y and
gene alizabili y o he esul s, especially when applying hem o decision-making p ocesses in a ious
con ex s. o add ess his gap, u u e esea ch could inco po a e a se ies o obus ness checks, such as
using al e na i e esg me ics, applying di e en econome ic models, o es ing he e ec s unde a ious
ma ke condi ions and egula o y en i onmen s. conduc ing such obus ness es s would no only
enhance he c edibili y o he indings bu also p o ide deepe insigh s in o he condi ions unde which
esg ac o s mos signi ican ly impac i m pe o mance.
he s udy e ealed a signi ican nega i e co ela ion be ween he en i onmen al pe o mance o i ms
and hei o e all pe o mance. his inding wa an s u he in es iga ion o unde s and he unde lying
easons o his ela ionship. Fu u e s udies could explo e he empo al aspec s o in es men s in en i-
onmen al sus ainabili y, such as he du a ion and iming o hese in es men s and how hey ansla e
in o posi i e inancial ou comes. conduc ing longi udinal s udies ha ack he pe o mance implica ions
o en i onmen al ini ia i es o e ex ended pe iods could shed ligh on he condi ions unde which he
cos s o implemen ing sus ainable p ac ices a e ou weighed by hei long- e m bene i s, p o iding alu-
able insigh s o businesses looking o in es in sus ainable p ac ices.
Fu u e esea ch should also conside a iables such as he company’s li e cycle s age and boa d com-
pensa ion. s udies ha e shown ha as a company ma u es, he e is an imp o emen in esg p ac ices
(se ia ini e al., 2023). Addi ionally, i is impo an o conside boa d compensa ion in he model analysis.
esea ch indings om he AseAn-5 coun ies sugges ha esg sco es a e posi i ely associa ed wi h
boa d compensa ion (e- ahda i e al., 2022). By inco po a ing he company’s li e cycle s age and boa d
compensa ion, we can gain a mo e comp ehensi e unde s anding o he ela ionship be ween esg pe -
o mance and i m pe o mance.
A ecen s udy has e ealed ha social pe o mance ends o ha e a negligible in luence on business
success. his inding emphasizes he need o u he explo a ion in his a ea. esea che s could del e
deepe in o he a ious ypes o social ini ia i es and analyze how hey align wi h a company’s o e all
s a egy and s akeholde expec a ions. By doing so, hey could iden i y speci ic social p ac ices ha a e
22 s. hAnDoYo AnD s. AnAs
mo e likely o enhance b and alue o cus ome loyal y, which in u n can d i e business pe o mance.
such in es iga ions could ul ima ely con ibu e o a be e unde s anding o how social esponsibili y can
posi i ely impac a company’s success.
exis ing esea ch con i ms ha good go e nance is a key d i e o i m pe o mance in he AseAn
con ex . he e o e, i is c ucial o conduc de ailed and comp ehensi e in es iga ions in o he go e -
nance mechanisms ha ha e he mos signi ican impac on inc easing i m alue. Fu u e s udies can
del e deepe in o he speci ic ole o a ious go e nance a ibu es, such as boa d di e si y, anspa -
ency le els, and sha eholde igh s, in d i ing i m pe o mance and inc easing i s o e all alue. By
examining he indi idual componen s o go e nance, we can be e unde s and how hey in e ac o
shape he pe o mance o i ms in he AseAn egion and de elop mo e e ec i e s a egies o
enhancing hei alue.
Finally, i is c ucial o acknowledge he signi ican ole o egula o y quali y and go e nmen e ec i e-
ness in in luencing he implemen a ion o esg policies. Fu he esea ch is needed o unde s and be e
he dynamic in e play be ween policy en i onmen s and he adop ion o esg p ac ices. his en ails
explo ing how changes in egula o y amewo ks and go e nance s anda ds ac oss he AseAn egion
impac i m beha io and pe o mance ou comes. By doing so, policymake s and business leade s can
gain aluable insigh s in o he e ec s o egula o y amewo ks on co po a e beha io and pe o mance,
which can in o m u u e policy decisions and business s a egies.
Au ho s’ con ibu ions
so ik handoyo: concep ion and design: s udy’s concep ion and design, o mula ing he esea ch ques ions and
ou lining he me hodological app oach o add ess hem. Da a collec ion and analysis: da a collec ion e o s,
de eloped he analy ical amewo k, and pe o med he p ima y analysis o he da a. his in ol ed bo h quan i-
a i e and quali a i e analysis o ensu e a comp ehensi e unde s anding o he da a collec ed. D a ing o he
manusc ip : ansla ed he esea ch indings in o a cohe en na a i e. his included c ea ing he ini ial d a
inco po a ing he s udy’s objec i es, me hodology, esul s, and discussion. syai ul Anas: design con ibu ion:
assis ed in e ining he s udy’s design, p o iding c i ical insigh s ha helped shape he esea ch me hodology
and execu ion. in e p e a ion o da a: in e p e ing he da a collec ed, wo king closely wi h so ik handoyo o
analyze he esul s and unde s and hei implica ions o he s udy’s esea ch ques ions. e ising he manusc ip
c i ically o in ellec ual con en : e ising he manusc ip , o e ing subs an ial imp o emen s o i s a gumen a ion,
cla i y, and in ellec ual igo .
Disclosu e s a emen
no po en ial con lic s o in e es a e epo ed by he au ho s.
Funding
he s udy ecei ed inancial suppo om uni e si as padjadja an Fakul as ekonomi dan Bisnis h ough he FeB
unpAD esea ch g an 2023.
Abou he au ho s
So ik Handoyo is an Associa e p o esso o Managemen Accoun ing a he Depa men o Accoun ing, Facul y o
economics and Business, uni e si as padjadja an in indonesia. he holds a Mas e ’s deg ee in small Business s udies
om he uni e si y o leipzig, ge many, and a Doc o al deg ee om uni e si as padjadja an, indonesia. his esea ch
in e es s e ol e a ound s a egic managemen accoun ing, business, and managemen .
Syai ul Anas is a senio lec u e in Accoun ing a he Depa men o Accoun ing, Facul y o economics and Business,
uni e si as padjadja an in indonesia. he holds a Mas e ’s deg ee in Accoun ing om uni e si as gadjah Mada,
indonesia. his esea ch in e es s co e managemen accoun ing, cos accoun ing, and budge ing.
ORCID
so ik handoyo h p://o cid.o g/0000-0001-5894-116X
cogen Business & MAnAgeMen 23
Da a a ailabili y s a emen
Da a is a ailable upon eques (co esponding Au ho : so ik handoyo).
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