Main Article Content
Abstract
Purpose – The company’s investors and lenders increasingly see that ESG is an important aspect to implement and disclose that can determine their investment or lending decision. This decision can impact the firm's capital inflow and financing capability, which can affect the company's financial flexibility. This study aims to show the effect of ESG on financial flexibility and the mediating role of financial constraints.
Design/methodology/approach – This study used companies listed on the Indonesia Stock Exchange from 2015 to 2021 as a sample. The final sample included 233 unbalanced panel data points from 48 listed firms. Path analysis and Sobel test are used to test the mediating role of financial constraint.
Findings – The results revealed a notable positive influence of ESG performance on financial flexibility. However, both the path analysis and Sobel test findings indicated that financing constraints were unsuccessful in mediating the relationship between a company's ESG performance and financial flexibility, as the direct effect remained stronger.
Research limitations/implications – This study only use enterprises from Indonesia as samples. Secondly, this study applied conventional methodologies commonly used in the existing literature to quantify variables. Third, this study relied on Refinitive ESG rating data and did not compare the ESG ratings from multiple institutions.
Practical implications – This research's findings prove to company management that adopting ESG practices in Indonesia can positively influence cash flow and financial flexibility. As a result, it incentivizes companies to be more open to voluntarily disclosing ESG-related information.
Originality/value – Little research has discussed whether ESG affects financial constraints and financial flexibility in Indonesia. This study also studies the differences in the effect of ESG performance on financial flexibility directly and indirectly through financial constraint as a mediator, which has not been covered in previous studies.
Keywords
Article Details
Copyright (c) 2023 Ayudya Shinta Yunica, Rofikoh Rokhim
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Ali, W., Danni, Y., Latif, B., Kouser, R., & Baqader, S. (2021). Corporate social responsibility and customer loyalty in food chains—mediating role of customer satisfaction and corporate reputation. Sustainability (Switzerland), 13(16). https://doi.org/10.3390/su13168681
- Almeida, H., Campello, M., & Weisbach, M. S. (2004). The Cash Flow Sensitivity of Cash. The Journal of Finance, 59(4), 1777–1804. https://doi.org/10.1111/j.1540-6261.2004.00679.x
- Arouri, M., & Pijourlet, G. (2017). CSR Performance and the Value of Cash Holdings: International Evidence. Journal of Business Ethics, 140(2), 263–284. https://doi.org/10.1007/S10551-015-2658-5
- Artiach, T., Lee, D., Nelson, D., & Walker, J. (2010). The determinants of corporate sustainability performance. Accounting & Finance, 50(1), 31–51. https://doi.org/10.1111/j.1467-629X.2009.00315.x
- Atif, M., & Ali, S. (2021). Environmental, social and governance disclosure and default risk. Business Strategy and the Environment, 30(8), 3937–3959. https://doi.org/10.1002/bse.2850
- Baños-Caballero, S., García-Teruel, P. J., & Martínez-Solano, P. (2014). Working capital management, corporate performance, and financial constraints. Journal of Business Research, 67(3), 332–338. https://doi.org/10.1016/j.jbusres.2013.01.016
- Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research. Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
- BÉNABOU, R., & TIROLE, J. (2010). Individual and Corporate Social Responsibility. Economica, 77(305), 1–19. https://doi.org/https://doi.org/10.1111/j.1468-0335.2009.00843.x
- Brown, L. W., Goll, I., Rasheed, A. A., & Crawford, W. S. (2020). Nonmarket Responses to Regulation: A Signaling Theory Approach. Group & Organization Management, 45(6), 865–891. https://doi.org/10.1177/1059601120963693
- Chae, J., Kim, S., & Lee, E. J. (2009). How corporate governance affects payout policy under agency problems and external financing constraints. Journal of Banking and Finance, 33(11), 2093–2101. https://doi.org/10.1016/j.jbankfin.2009.05.003
- Chen, H., Yang, D., Zhang, J. H., & Zhou, H. (2020). Internal controls, risk management, and cash holdings. Journal of Corporate Finance, 64, 101695. https://doi.org/10.1016/J.JCORPFIN.2020.101695
- Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. https://doi.org/10.1002/smj.2131
- Choi, J., & Wang, H. (2009). Stakeholder relations and the persistence of corporate financial performance. Strategic Management Journal, 30(8), 895–907. https://doi.org/10.1002/smj.759
- Choi, S. B., & Kawk, Y. M. (2015). Corporate social responsibility and financial constraints: Evidence from Korean firms. Global Business and Finance Review, 20(2), 15–26. https://doi.org/10.17549/gbfr.2015.20.2.15
- Deangelo, H., Deangelo, L., Fama, E., Hirshleifer, D., Masulis, R., Ritter, J., Sensoy, B., Stulz, R., Sufi, A., & Westerfield, M. (2006). Capital Structure, Payout Policy, and Financial Flexibility.
- Denis, D. J. (2011). Financial flexibility and corporate liquidity. Journal of Corporate Finance, 17(3), 667–674. https://doi.org/10.1016/j.jcorpfin.2011.03.006
- Dhaliwal, D. S., Li, O. Z., Tsang, A., Yang, Y. G., Cao, Y., Gu, Z., Magnan, M., Pincus, M., Radhakrish-Nan, S., & Wong, T. J. (2011). Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting We appreciate the valuable comments from. THE ACCOUNTING REVIEW American Accounting Association, 86(1), 59–100. https://doi.org/10.2308/accr.00000005
- El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388–2406. https://doi.org/10.1016/J.JBANKFIN.2011.02.007
- Engelhardt, N., Ekkenga, J., & Posch, P. (2021). ESG Ratings and Stock Performance during the COVID-19 Crisis. Sustainability, 13(13), 7133. https://doi.org/https://doi.org/10.3390/su13137133
- Fahlenbrach, R., Rageth, K., & Stulz, R. M. (2021). How Valuable Is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis. Review of Financial Studies, 34(11), 5474–5521. https://doi.org/10.1093/rfs/hhaa134
- Farinha, J., Mateus, C., & Soares, N. (2018). Cash holdings and earnings quality: evidence from the Main and Alternative UK markets. International Review of Financial Analysis, 56, 238–252. https://doi.org/10.1016/J.IRFA.2018.01.012
- Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/J.GFJ.2017.03.001
- Ferrando, A., Marchica, M.-T., & Mura, R. (2017). Financial Flexibility and Investment Ability Across the Euro Area and the UK: Financial Flexibility and Investment Ability. European Financial Management : The Journal of the European Financial Management Association, 23(1), 87–126. https://doi.org/10.1111/eufm.12091
- Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
- Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability. Journal of Business Ethics, 0, 3–18. https://doi.org/10.1007/s10551-019-04112-z
- Fridson, M. S., & Alvarez, F. (2022). Financial statement analysis: a practitioner’s guide. John Wiley & Sons.
- Gallego-Álvarez, I., Rodríguez-Domínguez, L., & García-Sánchez, I. M. (2011). Information disclosed online by Spanish universities: Content and explanatory factors. Online Information Review, 35(3), 360–385. https://doi.org/10.1108/14684521111151423/FULL/PDF
- Gamba, A., & Triantis, A. (2008). The Value of Financial Flexibility. In Source: The Journal of Finance (Vol. 63, Issue 5).
- García-Sánchez, I. M., Hussain, N., Martínez-Ferrero, J., & Ruiz-Barbadillo, E. (2019). Impact of disclosure and assurance quality of corporate sustainability reports on access to finance. Corporate Social Responsibility and Environmental Management, 26(4), 832–848. https://doi.org/10.1002/csr.1724
- Golden, W., & Powell, P. (2000). Towards a definition of flexibility: in search of the Holy Grail? Omega (Oxford), 28(4), 373–384. https://doi.org/10.1016/S0305-0483(99)00057-2
- Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47–77. https://doi.org/10.1108/09513579510146996/FULL/PDF
- HAO, Z., ZHANG, X., & WEI, J. (2022). Research on the effect of enterprise financial flexibility on sustainable innovation. Journal of Innovation & Knowledge, 7(2), 100184. https://doi.org/10.1016/J.JIK.2022.100184
- Haslam, C., Tsitsianis, N., Andersson, T., & Gleadle, P. (2015). RVA Consulting, Sweden 4 The Open University Business School. In United Kingdom Journal of Business Models (Vol. 3, Issue 1).
- Hoberg, G., Phillips, G., & Prabhala, N. (2014). Product Market Threats, Payouts, and Financial Flexibility. In Source: The Journal of Finance (Vol. 69, Issue 1).
- Hur, W., Kim, H., & Kim, H. K. (2018). Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment. Corporate Social-Responsibility and Environmental Management, 25(6), 1258–1269. https://doi.org/10.1002/csr.1636
- Islam, R., Haque, Z., & Moutushi, R. H. (2022). Earnings quality and financial flexibility: A moderating role of corporate governance. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2097620
- Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25, 123–135. https://doi.org/10.1016/j.spc.2020.07.019
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
- Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.
- Kaplan, S. N., & Zingales, L. (1997). Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? In Source: The Quarterly Journal of Economics (Vol. 112, Issue 1). https://www.jstor.org/stable/2951280
- Lamont, O., Polk, C., & Saá-Requejo, J. (2001). Financial Constraints and Stock Returns. The Review of Financial Studies, 14(2), 529–554. https://doi.org/10.1093/rfs/14.2.529
- Lee, D. D., & Faff, R. W. (2009). Corporate Sustainability Performance and Idiosyncratic Risk: A Global Perspective. The Financial Review (Buffalo, N.Y.), 44(2), 213–237. https://doi.org/10.1111/j.1540-6288.2009.00216.x
- Li, T. T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021). Esg: Research progress and future prospects. In Sustainability (Switzerland) (Vol. 13, Issue 21). MDPI. https://doi.org/10.3390/su132111663
- Lie, E. (2005). Financial Flexibility, Performance, and the Corporate Payout Choice. The Journal of Business (Chicago, Ill.), 78(6), 2179–2202. https://doi.org/10.1086/497043
- McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: a Theory of the Firm Perspective. Academy of Management Review, 26(1), 117–127. https://doi.org/10.5465/amr.2001.4011987
- Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment (Vol. 48, Issue 3).
- Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
- Nugroho, N. A., & Hersugondo, H. (2022). Analisis Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Keuangan Perusahaan (Vol. 15, Issue 2). http://journal.stekom.ac.id/index.php/E-Bisnis-page233
- Octaviani, F. A., & Utama, C. A. (2022). Impact of Corporate Hedging and ESG on Stock Price Crash Risk: Evidence from Indonesian Energy Firms. Indian Journal of Corporate Governance, 15(2), 149–169. https://doi.org/10.1177/09746862221129341
- Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515.
- Porter, M. E., & Kramer, M. R. (2011). Creating shared value: how to reinvent capitalism - and unleash a wave of innovation and growth. In Harvard business review (Vol. 89, Issues 1–2, p. 62).
- Rizky Bunga Pertiwi, L. (2023). Pengaruh Kinerja Environmental, Social, Governance (ESG) Terhadap Kinerja Perusahaan Dengan Kendala Keuangan Sebagai Variabel Moderasi (Studi pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2016-2020). Diponegoro Journal of Management, 12(1). http://ejournal-s1.undip.ac.id/index.php/dbr
- Sekar Sari, P., Widiatmoko, J., & kunci, K. (2023). Pengaruh Environmental, Social, and Governance (ESG) Disclosure terhadap Kinerja Keuangan dengan Gender Diversity sebagai Variabel Moderasi. Jurnal Ilmiah Akuntansi Dan Keuangan, 5(9). https://journal.ikopin.ac.id/index.php/fairvalue
- Sen, S., & Bhattacharya, C. B. (2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research, 38(2), 225–243. https://doi.org/10.1509/jmkr.38.2.225.18838
- Sun, S. Z., & Hou, Y. L. (2021). Analysis of the Effectiveness of ESG Investment Model Under Different Market Conditions. Credit. Ref, 39, 81–88.
- Sustainalytics. (2022). Getting Started with ESG: What Every Company Needs to Know. Sustainalitycs Publication.
- The Economist. (2022). Why Indonesia matters. The Economist. https://www.economist.com/leaders/2022/11/17/why-indonesia-matters.
- Trisnowati, Y., Achsani, N. A., Sembel, R., & Andati, T. (2022). The Effect of ESG Score, Financial Performance, and Macroeconomics on Stock Returns during the Pandemic Era in Indonesia. International Journal of Energy Economics and Policy, 12(4), 166–172. https://doi.org/10.32479/ijeep.13212
- Wong, W. C., Batten, J. A., Ahmad, A. H., Mohamed-Arshad, S. B., Nordin, S., & Adzis, A. A. (2021). Does ESG certification add firm value? Finance Research Letters, 39, 101593. https://doi.org/10.1016/j.frl.2020.101593
- Xiao, Z. Y., Lin, L., Chen, Z. Y., & Xu, D. B. (2020). Financial Flexibility and Continuous Innovation of Chinese listed firms: Coordinated Innovation Effect and Adaptive Effect. Journal of Statistical Research, 37, 82–93.
- Zeng, A. M., & Wei, Z. H. (2013). Financial Constraints, Financial Flexibility and Investment-cash Flow Sensitivity: Theoretical Analysis and Empirical Evidence from Listed companies in China. Journal of Finance and Economics, 11(39), 48–58.
- Zhang, D., & Liu, L. (2022). Does ESG Performance Enhance Financial Flexibility? Evidence from China. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811324
- Zhang, D., & Lucey, B. M. (2022). Sustainable behaviors and firm performance: The role of financial constraints’ alleviation. Economic Analysis and Policy, 74, 220–233. https://doi.org/10.1016/j.eap.2022.02.003
- Zhao, H., & Zhang, D. Z. (2010). Research on the Original Attributes of Corporate Financial flexibility. Accounting Research, 6, 62–69.
References
Ali, W., Danni, Y., Latif, B., Kouser, R., & Baqader, S. (2021). Corporate social responsibility and customer loyalty in food chains—mediating role of customer satisfaction and corporate reputation. Sustainability (Switzerland), 13(16). https://doi.org/10.3390/su13168681
Almeida, H., Campello, M., & Weisbach, M. S. (2004). The Cash Flow Sensitivity of Cash. The Journal of Finance, 59(4), 1777–1804. https://doi.org/10.1111/j.1540-6261.2004.00679.x
Arouri, M., & Pijourlet, G. (2017). CSR Performance and the Value of Cash Holdings: International Evidence. Journal of Business Ethics, 140(2), 263–284. https://doi.org/10.1007/S10551-015-2658-5
Artiach, T., Lee, D., Nelson, D., & Walker, J. (2010). The determinants of corporate sustainability performance. Accounting & Finance, 50(1), 31–51. https://doi.org/10.1111/j.1467-629X.2009.00315.x
Atif, M., & Ali, S. (2021). Environmental, social and governance disclosure and default risk. Business Strategy and the Environment, 30(8), 3937–3959. https://doi.org/10.1002/bse.2850
Baños-Caballero, S., García-Teruel, P. J., & Martínez-Solano, P. (2014). Working capital management, corporate performance, and financial constraints. Journal of Business Research, 67(3), 332–338. https://doi.org/10.1016/j.jbusres.2013.01.016
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research. Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
BÉNABOU, R., & TIROLE, J. (2010). Individual and Corporate Social Responsibility. Economica, 77(305), 1–19. https://doi.org/https://doi.org/10.1111/j.1468-0335.2009.00843.x
Brown, L. W., Goll, I., Rasheed, A. A., & Crawford, W. S. (2020). Nonmarket Responses to Regulation: A Signaling Theory Approach. Group & Organization Management, 45(6), 865–891. https://doi.org/10.1177/1059601120963693
Chae, J., Kim, S., & Lee, E. J. (2009). How corporate governance affects payout policy under agency problems and external financing constraints. Journal of Banking and Finance, 33(11), 2093–2101. https://doi.org/10.1016/j.jbankfin.2009.05.003
Chen, H., Yang, D., Zhang, J. H., & Zhou, H. (2020). Internal controls, risk management, and cash holdings. Journal of Corporate Finance, 64, 101695. https://doi.org/10.1016/J.JCORPFIN.2020.101695
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. https://doi.org/10.1002/smj.2131
Choi, J., & Wang, H. (2009). Stakeholder relations and the persistence of corporate financial performance. Strategic Management Journal, 30(8), 895–907. https://doi.org/10.1002/smj.759
Choi, S. B., & Kawk, Y. M. (2015). Corporate social responsibility and financial constraints: Evidence from Korean firms. Global Business and Finance Review, 20(2), 15–26. https://doi.org/10.17549/gbfr.2015.20.2.15
Deangelo, H., Deangelo, L., Fama, E., Hirshleifer, D., Masulis, R., Ritter, J., Sensoy, B., Stulz, R., Sufi, A., & Westerfield, M. (2006). Capital Structure, Payout Policy, and Financial Flexibility.
Denis, D. J. (2011). Financial flexibility and corporate liquidity. Journal of Corporate Finance, 17(3), 667–674. https://doi.org/10.1016/j.jcorpfin.2011.03.006
Dhaliwal, D. S., Li, O. Z., Tsang, A., Yang, Y. G., Cao, Y., Gu, Z., Magnan, M., Pincus, M., Radhakrish-Nan, S., & Wong, T. J. (2011). Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting We appreciate the valuable comments from. THE ACCOUNTING REVIEW American Accounting Association, 86(1), 59–100. https://doi.org/10.2308/accr.00000005
El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388–2406. https://doi.org/10.1016/J.JBANKFIN.2011.02.007
Engelhardt, N., Ekkenga, J., & Posch, P. (2021). ESG Ratings and Stock Performance during the COVID-19 Crisis. Sustainability, 13(13), 7133. https://doi.org/https://doi.org/10.3390/su13137133
Fahlenbrach, R., Rageth, K., & Stulz, R. M. (2021). How Valuable Is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis. Review of Financial Studies, 34(11), 5474–5521. https://doi.org/10.1093/rfs/hhaa134
Farinha, J., Mateus, C., & Soares, N. (2018). Cash holdings and earnings quality: evidence from the Main and Alternative UK markets. International Review of Financial Analysis, 56, 238–252. https://doi.org/10.1016/J.IRFA.2018.01.012
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/J.GFJ.2017.03.001
Ferrando, A., Marchica, M.-T., & Mura, R. (2017). Financial Flexibility and Investment Ability Across the Euro Area and the UK: Financial Flexibility and Investment Ability. European Financial Management : The Journal of the European Financial Management Association, 23(1), 87–126. https://doi.org/10.1111/eufm.12091
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability. Journal of Business Ethics, 0, 3–18. https://doi.org/10.1007/s10551-019-04112-z
Fridson, M. S., & Alvarez, F. (2022). Financial statement analysis: a practitioner’s guide. John Wiley & Sons.
Gallego-Álvarez, I., Rodríguez-Domínguez, L., & García-Sánchez, I. M. (2011). Information disclosed online by Spanish universities: Content and explanatory factors. Online Information Review, 35(3), 360–385. https://doi.org/10.1108/14684521111151423/FULL/PDF
Gamba, A., & Triantis, A. (2008). The Value of Financial Flexibility. In Source: The Journal of Finance (Vol. 63, Issue 5).
García-Sánchez, I. M., Hussain, N., Martínez-Ferrero, J., & Ruiz-Barbadillo, E. (2019). Impact of disclosure and assurance quality of corporate sustainability reports on access to finance. Corporate Social Responsibility and Environmental Management, 26(4), 832–848. https://doi.org/10.1002/csr.1724
Golden, W., & Powell, P. (2000). Towards a definition of flexibility: in search of the Holy Grail? Omega (Oxford), 28(4), 373–384. https://doi.org/10.1016/S0305-0483(99)00057-2
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47–77. https://doi.org/10.1108/09513579510146996/FULL/PDF
HAO, Z., ZHANG, X., & WEI, J. (2022). Research on the effect of enterprise financial flexibility on sustainable innovation. Journal of Innovation & Knowledge, 7(2), 100184. https://doi.org/10.1016/J.JIK.2022.100184
Haslam, C., Tsitsianis, N., Andersson, T., & Gleadle, P. (2015). RVA Consulting, Sweden 4 The Open University Business School. In United Kingdom Journal of Business Models (Vol. 3, Issue 1).
Hoberg, G., Phillips, G., & Prabhala, N. (2014). Product Market Threats, Payouts, and Financial Flexibility. In Source: The Journal of Finance (Vol. 69, Issue 1).
Hur, W., Kim, H., & Kim, H. K. (2018). Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment. Corporate Social-Responsibility and Environmental Management, 25(6), 1258–1269. https://doi.org/10.1002/csr.1636
Islam, R., Haque, Z., & Moutushi, R. H. (2022). Earnings quality and financial flexibility: A moderating role of corporate governance. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2097620
Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25, 123–135. https://doi.org/10.1016/j.spc.2020.07.019
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.
Kaplan, S. N., & Zingales, L. (1997). Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? In Source: The Quarterly Journal of Economics (Vol. 112, Issue 1). https://www.jstor.org/stable/2951280
Lamont, O., Polk, C., & Saá-Requejo, J. (2001). Financial Constraints and Stock Returns. The Review of Financial Studies, 14(2), 529–554. https://doi.org/10.1093/rfs/14.2.529
Lee, D. D., & Faff, R. W. (2009). Corporate Sustainability Performance and Idiosyncratic Risk: A Global Perspective. The Financial Review (Buffalo, N.Y.), 44(2), 213–237. https://doi.org/10.1111/j.1540-6288.2009.00216.x
Li, T. T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021). Esg: Research progress and future prospects. In Sustainability (Switzerland) (Vol. 13, Issue 21). MDPI. https://doi.org/10.3390/su132111663
Lie, E. (2005). Financial Flexibility, Performance, and the Corporate Payout Choice. The Journal of Business (Chicago, Ill.), 78(6), 2179–2202. https://doi.org/10.1086/497043
McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: a Theory of the Firm Perspective. Academy of Management Review, 26(1), 117–127. https://doi.org/10.5465/amr.2001.4011987
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment (Vol. 48, Issue 3).
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
Nugroho, N. A., & Hersugondo, H. (2022). Analisis Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Keuangan Perusahaan (Vol. 15, Issue 2). http://journal.stekom.ac.id/index.php/E-Bisnis-page233
Octaviani, F. A., & Utama, C. A. (2022). Impact of Corporate Hedging and ESG on Stock Price Crash Risk: Evidence from Indonesian Energy Firms. Indian Journal of Corporate Governance, 15(2), 149–169. https://doi.org/10.1177/09746862221129341
Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515.
Porter, M. E., & Kramer, M. R. (2011). Creating shared value: how to reinvent capitalism - and unleash a wave of innovation and growth. In Harvard business review (Vol. 89, Issues 1–2, p. 62).
Rizky Bunga Pertiwi, L. (2023). Pengaruh Kinerja Environmental, Social, Governance (ESG) Terhadap Kinerja Perusahaan Dengan Kendala Keuangan Sebagai Variabel Moderasi (Studi pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2016-2020). Diponegoro Journal of Management, 12(1). http://ejournal-s1.undip.ac.id/index.php/dbr
Sekar Sari, P., Widiatmoko, J., & kunci, K. (2023). Pengaruh Environmental, Social, and Governance (ESG) Disclosure terhadap Kinerja Keuangan dengan Gender Diversity sebagai Variabel Moderasi. Jurnal Ilmiah Akuntansi Dan Keuangan, 5(9). https://journal.ikopin.ac.id/index.php/fairvalue
Sen, S., & Bhattacharya, C. B. (2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility. Journal of Marketing Research, 38(2), 225–243. https://doi.org/10.1509/jmkr.38.2.225.18838
Sun, S. Z., & Hou, Y. L. (2021). Analysis of the Effectiveness of ESG Investment Model Under Different Market Conditions. Credit. Ref, 39, 81–88.
Sustainalytics. (2022). Getting Started with ESG: What Every Company Needs to Know. Sustainalitycs Publication.
The Economist. (2022). Why Indonesia matters. The Economist. https://www.economist.com/leaders/2022/11/17/why-indonesia-matters.
Trisnowati, Y., Achsani, N. A., Sembel, R., & Andati, T. (2022). The Effect of ESG Score, Financial Performance, and Macroeconomics on Stock Returns during the Pandemic Era in Indonesia. International Journal of Energy Economics and Policy, 12(4), 166–172. https://doi.org/10.32479/ijeep.13212
Wong, W. C., Batten, J. A., Ahmad, A. H., Mohamed-Arshad, S. B., Nordin, S., & Adzis, A. A. (2021). Does ESG certification add firm value? Finance Research Letters, 39, 101593. https://doi.org/10.1016/j.frl.2020.101593
Xiao, Z. Y., Lin, L., Chen, Z. Y., & Xu, D. B. (2020). Financial Flexibility and Continuous Innovation of Chinese listed firms: Coordinated Innovation Effect and Adaptive Effect. Journal of Statistical Research, 37, 82–93.
Zeng, A. M., & Wei, Z. H. (2013). Financial Constraints, Financial Flexibility and Investment-cash Flow Sensitivity: Theoretical Analysis and Empirical Evidence from Listed companies in China. Journal of Finance and Economics, 11(39), 48–58.
Zhang, D., & Liu, L. (2022). Does ESG Performance Enhance Financial Flexibility? Evidence from China. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811324
Zhang, D., & Lucey, B. M. (2022). Sustainable behaviors and firm performance: The role of financial constraints’ alleviation. Economic Analysis and Policy, 74, 220–233. https://doi.org/10.1016/j.eap.2022.02.003
Zhao, H., & Zhang, D. Z. (2010). Research on the Original Attributes of Corporate Financial flexibility. Accounting Research, 6, 62–69.