Proceedings of the International Conference on Contemporary Risk Studies (ICONIC-RS 2025)

International Conference on Contemporary Risk Studies (ICONIC-RS 2025)

📍Jakarta, Indonesia🗓️ 8 October 2025
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The Impact of ESG on The Financial, Operational, and Value Performance of Materials Sector Company in Asia Pacific from 2019 to 2023

Authors
Lillianna Ricarda Mettasari1, *, Dewi Hanggraeni2
1Faculty of Economics and Business, Universitas Indonesia, Jakarta, Indonesia
2Faculty of Economics and Business, Universitas Indonesia, Universitas Pertamina, Jakarta, Indonesia
*Corresponding author. Email: Lilliannaricardaa03@gmail.com
Corresponding Author
Lillianna Ricarda Mettasari
Available Online 8 July 2026.
DOI
10.2991/978-2-38476-595-9_3How to use a DOI?
Keywords
ESG disclosure; Operational Performance; Financial Performance; Market Value; Asia Pacific
Abstract

This study analyzes the impact of Environmental, Social, and Governance (ESG) factors on the financial, operational, and market value performance of materials sector companies in the Asia Pacific region during 2019-2023. Using a quantitative approach with panel data from 128 purposively selected firms, a fixed effect model is applied to assess the influence of overall ESG scores and each pillar on Return on Assets (ROA), Return on Equity (ROE), Tobin’s Q, and Price to Earnings (PE) ratio. The results show that overall ESG scores have a significant negative impact on ROA, ROE, and Tobin’s Q, while the effect on PE is positive but not significant. The environmental pillar shows a consistent negative effect, whereas social and governance pillars have no significant influence. These findings suggest a short-term tradeoff between sustainability efforts and firm performance, and indicate that ESG is not yet fully valued by investors in this sector.

Copyright
© 2026 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 International Conference on Contemporary Risk Studies (ICONIC-RS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
8 July 2026
ISBN
978-2-38476-595-9
ISSN
2352-5428
DOI
10.2991/978-2-38476-595-9_3How to use a DOI?
Copyright
© 2026 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  - Lillianna Ricarda Mettasari
AU  - Dewi Hanggraeni
PY  - 2026
DA  - 2026/07/08
TI  - The Impact of ESG on The Financial, Operational, and Value Performance of Materials Sector Company in Asia Pacific from 2019 to 2023
BT  - Proceedings of the  International Conference on Contemporary Risk Studies (ICONIC-RS 2025)
PB  - Atlantis Press
SP  - 24
EP  - 37
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-595-9_3
DO  - 10.2991/978-2-38476-595-9_3
ID  - Mettasari2026
ER  -