Analysis Of The Influence Of ESG Value And Commodity Prices On Company Stock Prices On ESG Quality 45 IDX Kehati

Abstract

The trend of sustainable investment is the choice of investors because of its environmentally friendly practices and long-term investment. The framework for sustainable investment pays attention to three main aspects called ESG (Environment, Social, and Governance). This indicator is very subjective if used as a benchmark to make decisions on determining the stock price of a company. This study aims to analyze the influence of companies that implement ESG and listed on the ESG Quality 45 IDX Kehati stock index. This research sample consists of 20 companies listed in the ESG Quality 45 Idx Kehati stock index. This study used panel data regression method and applied Feasible General Least Square (FGLS) in its analysis, which serves as a resilience check. The results of this study show that social and governance variables have a significant negative effect on stock prices. Other supporting variables include gold has a significant negative effect on the company's stock price and oil variables have a significant positive effect on the company's stock price. Meanwhile, environmental and geopolitical risk variables do not have a significant effect on changes in the company's stock price.