The Influence of Environmental, Social, and Governance Performance on Dividend Policy Moderated by Industry Type
DOI:
https://doi.org/10.24256/kharaj.v8i3.12419Keywords:
Environmental Social Governance, Dividend Policy, Industry Type, Manufacturing Company, Data Regression PanelAbstract
Objective: This study aims to analyze the influence of Environmental, Social, and Governance (ESG) Performance on dividend policy, with Industry Type (manufacturing and non-manufacturing companies) as the moderation variable, in non-financial companies listed on the Indonesia Stock Exchange for the period 2011–2025. Method: Dividend policy was measured using the Dividend Payout Ratio (DPR), while Environmental, Social, and Governance performance was measured using ESG scores from the Refinitiv Eikon LSEG database. The sample was determined through purposive sampling of 10 non-financial companies (150 company-year observations), with profitability (Return on Assets), firm size, and leverage as control variables. Data were analyzed using panel data regression with a Fixed Effect Model approach and robust standard error. Results: Social Performance had a significant positive effect on dividend policy, and Industry Type was shown to moderate this influence, where the effect was weaker on manufacturing companies than non-manufacturing companies. Governance Performance had a negative but not significant effect on dividend policy, while Environmental Performance and the effect of Industry Type moderation on Environmental and Governance Performance were not found to have a significant effect. Implications: This study makes a theoretical contribution to enriching the literature on the role of industry types as a moderator of ESG relationships and dividend policies, as well as provides practical implications for company management, investors, and regulators in considering ESG performance, especially the social dimension, as one of the indicators of the sustainability of dividend distribution.
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