Citation:

Adinda Padella, Syarifah Nurul Alnisa, Irenne Anggraini, Khristina Yunita. "Analysis of Sustainability of Governance of ESG Companies in Tourism in Indonesia Registered on the IDX for the 2017- 2021 Period" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 450-455, 2023.

Abstract:

This study examines the implementation of Sustainable and Responsible Corporate Governance practices (ESG) in the tourism industry in Indonesia. The analysis was conducted from 2017 to 2021 using a quantitative approach and portfolio formation method. The research sample consists of 80 tourism companies listed on the Indonesia Stock Exchange that have implemented ESG practices. The results show that companies in the group with higher levels of ESG practice (Group 3) have better financial performance, with higher average Return on Assets (ROA) and Return on Equity (ROE) compared to other groups. This indicates the efficiency and effectiveness of asset utilization and the company's ability to generate significant profits. However, Group 6 exhibits the lowest performance with the lowest ROA and ROE. This suggests challenges in creating competitive profits compared to the company's assets and equity. Issues in asset management, financial strategies, or operational efficiency may contribute to the low performance in this group.

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Keywords:

Tourism, ESG, Corporate Governance, Financial Performance.