Proceedings of the 2nd International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2025)

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Stock Volatility and ESG Factors: A Study on Merah Putih Cabinet’s First Semester of Sustainable Economy

Authors
Daniyal Ulyana1, *, Ferriyanto Ferriyanto1, Reniati Reniati1, Aning Kesuma Putri1
1Faculty of Economics and Business, Universitas Bangka Belitung, Pangkalpinang, Bangka Belitung Province, 33172, Indonesia
*Corresponding author. Email: daniyalulyana.du@gmail.com
Corresponding Author
Daniyal Ulyana
Available Online 25 December 2025.
DOI
10.2991/978-94-6463-974-2_25How to use a DOI?
Keywords
ESG; Stock Volatility; Blue Economy; Green Economy; Governance Risk
Abstract

This study aims to analyze the impact of Environmental, Social, and Governance (ESG) performance on the stock volatility of companies operating in Indonesia’s blue and green economy sectors. Using a quantitative approach, the study employs a Multivariate Regression Model to assess how ESG factors influence stock volatility. Data were analyzed using Ordinary Least Squares (OLS) regression in a Multivariate Regression framework, employing the classical assumption tests (normality, multicollinearity, heteroskedasticity) prior to estimation. The findings reveal that governance risk significantly affects stock volatility, while environmental and social risks do not have a substantial impact. Additionally, the interaction between social and governance risks contributes to increased stock volatility, highlighting the importance of strong governance structures in mitigating market fluctuations. The results suggest that enhancing ESG practices, particularly governance, can improve stock stability in the blue and green economy sectors, contributing to the long-term sustainability of these industries.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
25 December 2025
ISBN
978-94-6463-974-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-974-2_25How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Daniyal Ulyana
AU  - Ferriyanto Ferriyanto
AU  - Reniati Reniati
AU  - Aning Kesuma Putri
PY  - 2025
DA  - 2025/12/25
TI  - Stock Volatility and ESG Factors: A Study on Merah Putih Cabinet’s First Semester of Sustainable Economy
BT  - Proceedings of the 2nd International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2025)
PB  - Atlantis Press
SP  - 171
EP  - 178
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-974-2_25
DO  - 10.2991/978-94-6463-974-2_25
ID  - Ulyana2025
ER  -