SUSTAINABILITY PERFORMANCE AND FINANCIAL PERFORMANCE ON MARKET CAPITALIZATION WITH GREEN COMPLIANCE AS A MODERATING VARIABLE IN NON-FINANCIAL COMPANIES IN ASEAN COUNTRIES

Abstract

This study attempts to determine the influence of Environmental (E Score), Social (S Score), and Governance (G Score) on company value, which in this study is proxied by Market Capitalization in non-financial companies in the Southeast Asia (ASEAN) region. This study also attempts to determine the role of environmental performance in moderating these variables on Market Capitalization. The sampling technique used purposive sampling with the criteria of companies in ASEAN countries conducting ESG Score rankings. The sample in this study was 235 companies. The analysis used in this study was Moderator Regression Analysis (MRA) to determine the relationship between E Score, S Score, G Score, and Environmental Performance as a moderating variable. The results show that this study found that Social Score and Governance Score have a positive effect on Market Capitalization, while Environmental Score is only significant when moderated by environmental performance. These results emphasize the importance of real sustainability practices, because investors value evidence of ESG implementation more than just formal scores.