Skip to content
Research Article Open access CC BY 4.0

Moderating Effect of Intellectual Capital Components on the Relationship between ESG Scores and Firm Financial Performance

Adi Pratama, Bima Cinintya Pratama, Sri Wahyuni, Ira Hapsari

Asian Journal of Economics, Business and Accounting · pp. 477–495 · Published 6 Jun 2024

10.9734/ajeba/2024/v24i61375

Abstract

Aims: This study aims to determine the relationship between ESG Scores, Human Capital Efficiency (hereinafter referred to as HCE), Structural Capital Efficiency (hereinafter referred to as SCE), and Capital Employed Efficiency (hereinafter referred to as CEE) with Firm Financial Performance (hereinafter referred to as FFP). The role of HCE, SCE, and CEE as moderation between ESG Scores and FFP is also examined. This study uses Firm Size as a control variable. Study Design: Quantitative, Correlation, Panel data regression on time series data. Place and Duration of Study: Sample: With a purposive sampling approach, a total of 122 consisting of 58 companies listed on the Indonesian Stock Exchange in 2020-2023 and have ESG Scores from Morningstar Sustainalytics. Methodology: This study utilized the Fixed Effect Regression Model based on the preliminary test results for panel data regression. Results: The results of this study indicate that ESG Scores, HCE, and CEE have a positive effect on FFP, SCE doesn’t affect FFP, HCE cannot moderate the relationship between ESG Scores and FFP, SCE weakens the relationship between ESG Scores and FFP, and CEE strengthens the relationship between ESG Scores and FFP. Conclusion: This research concludes that the company's increasing FFP is influenced by several factors, including ESG Scores and Intellectual Capital (hereinafter referred to as IC) Component. The results of this study can be taken into consideration by companies and external parties such as potential investors and can influence stakeholders’ decision-making regarding the FFP which is influenced by ESG reflected by ESG Scores and knowledge-based corporate resources reflected by the IC Component.

ESG scores intellectual capital human capital efficiency structural capital efficiency capital employed efficiency firm financial performance

References (59)

  1. 1 Firm Resources and Sustained Competitive Advantage [DOI]
  2. 2 Strategic management a stakeholder approach
  3. 3 Intellectual capital: an exploratory study that develops measures and models [DOI]
  4. 4 Firms and social responsibility: A review of ESG and CSR research in corporate finance [DOI]
  5. 5 Testing for Serial Correlation in Linear Panel-data Models [DOI]
  6. 6 The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review [DOI]
  7. 7 Intellectual capital and traditional measures of corporate performance [DOI]
  8. 8 Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack [DOI]
  9. 9 The history and current applications of the circular economy concept [DOI]
  10. 10 Does ESG performance have an impact on financial performance? Evidence from Germany [DOI]
  11. 11 Developing intellectual capital at Skandia [DOI]
  12. 12 Resource-based theory in marketing [DOI]
  13. 13 VAIC™ an accounting tool for IC management [DOI]
  14. 14 ESG: Research Progress and Future Prospects [DOI]
  15. 15 Intellectual capital – does it create or destroy value? [DOI]
  16. 16 Board gender diversity and ESG disclosure: evidence from the USA [DOI]
  17. 17 Intellectual capital and performance in causal models [DOI]
  18. 18 Is intellectual capital performance and disclosure practices related? [DOI]
  19. 19 Residual Diagnostics for Cross-section Time Series Regression Models [DOI]
  20. 20 Revisiting the impact of ESG on financial performance of FTSE350 UK firms: Static and dynamic panel data analysis [DOI]
  21. 21 Does Good ESG Lead to Better Financial Performances by Firms? Machine Learning and Logistic Regression Models of Public Enterprises in Europe [DOI]
  22. 22 Environmental, social, and governance ratings and financial performance: Evidence from the European food industry [DOI]
  23. 23 ESG practices and corporate financial performance: Evidence from Borsa Istanbul [DOI]
  24. 24 Investments: Analysis and Management. [DOI]
  25. 25 The impact of voluntary sustainability reporting on firm value: Insights from signaling theory [DOI]
  26. 26 Governance Structure, Innovation and Internationalization: Evidence From India [DOI]
  27. 27 INTELLECTUAL CAPITAL: PERLAKUAN, PENGUKURAN DAN PELAPORAN (SEBUAH LIBRARY RESEARCH) [DOI]
  28. 28 Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan [DOI]
  29. 29 Intellectual Capital Performance of Indonesian Banking Sector: A Modified VAIC (M-VAIC) Perspective [DOI]
  30. 30 What Really Explains ESG Performance? Disentangling the Asymmetrical Drivers of the Triple Bottom Line [DOI]
  31. 31 The future of non‐financial businesses reporting: Learning from the Covid‐19 pandemic [DOI]
  32. 32 The Impact of Human Resource Management on Corporate Social Performance Strengths and Concerns [DOI]
  33. 33 Does intellectual capital efficiency explain corporate social responsibility engagement-firm performance relationship? Evidence from environmental, social and governance performance of US listed firms [DOI]
  34. 34 Environmental performance, environmental disclosure, and firm value: empirical study of non-financial companies at Indonesia Stock Exchange [DOI]
  35. 35 ESG and Firm Performance in Developing Countries: Evidence From ASEAN [DOI]
  36. 36 Intellectual capital performance drivers in the Greek banking sector [DOI]
  37. 37 PENGARUH MODAL INTELEKTUAL TERHADAP KINERJA KEUANGAN [DOI]
  38. 38 PENGARUH INTELLECTUAL CAPITAL DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN PERUSAHAAN [DOI]
  39. 39 The Effect of Intellectual Capital towards Firm Performance and Risk with Board Diversity as a Moderating Variable: Study in ASEAN Banking Firms [DOI]
  40. 40 Environmental, Social, and Governance Information Disclosure and Intellectual Capital Efficiency in Jordanian Listed Firms [DOI]
  41. 41 Pengaruh Environment, Social and Governance Disclosure terhadap Kinerja Perusahaan [DOI]
  42. 42 PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN PERUSAHAAN [DOI]
  43. 43 Financial Derivatives and Firm Performance: Empirical Evidence from Financial and Non-financial Firms [DOI]
  44. 44 Family ownership and Entrenchment Effect on Intellectual Capital Utilization: Study on High-Technology Companies in Indonesia in Facing Asean Economic Community (AEC) , [DOI]
  45. 45 ESG AND INTELLECTUAL CAPITAL EFFICIENCY: EVIDENCE FROM ASEAN EMERGING MARKETS [DOI]
  46. 46 Pengaruh Intellectual Capital Terhadap Kinerja Keuangan Sektor Keuangan di Indonesia [DOI]
  47. 47 Implementation of Corporate Social Responsibility Framework in Mining Companies [DOI]
  48. 48 PENGARUH GOOD CORPORATE GOVERNANCE, STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN [DOI]
  49. 49 ANALISIS PENGARUH MODAL INTELEKTUAL TERHADAP RETURN ON ASSETS (ROA) [DOI]
  50. 50 The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets
  51. 51 Determinants of environmental social and governance (ESG) performance: A systematic literature review [DOI]
  52. 52 ESG controversy as a potential asset-pricing factor [DOI]
  53. 53 Corporate ESG performance and human capital investment efficiency [DOI]
  54. 54 Towards higher sustainability: If you want something done, ask a chairwoman [DOI]
  55. 55 The Impact of ESG Scores on Corporate Financial Performance: Moderating Role of Gender Diversity [DOI]
  56. 56 PENGGUNAAN ENERGI TERBARUKAN, SKOR ESG, BIAYA MODAL DAN BIAYA OPERASIONAL PADA KINERJA KEUANGAN [DOI]
  57. 57 Intellectual Capital: The Role of Green Accounting on Corporate Social Responsibility [DOI]
  58. 58 Cash Flow Management and Firm Performance: Moderating Effect of Corporate Governance Mechanism in the Era of Disruption in Emerging Economy [DOI]
  59. 59 Corporate Governance and Profitability: The Role of Cost of Capital as Mediation [DOI]

Cited by 6

The Influence of Environmental, Social, and Governance (ESG) on Corporate Financial Performance

Andra Tiara Syafira, Hijroh Rokhayati · Jurnal Riset Akuntansi dan Keuangan · 2025

Developing an intellectual capital benchmarking approach of business incubators

Ratapol Wudhikarn, Tanyanuparb Anantana, Tinnakorn Phongthiya · Journal of Intellectual Capital · 2025

Showing 2 of 6 known citations — external sources report more than can currently be individually listed.

Article metrics

Real usage data collected on this platform.

13

Page views

0

PDF downloads

0

Outbound clicks

6

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.