The Impact of ESG on Debt to Financial with TATO as Mediating

Penulis

  • Dea Tiara Monalisa Butar-Butar University International Batam
  • Penni Natalia University International Batam
  • Mariska Ramadana University International Batam

DOI:

https://doi.org/10.31000/rjp6t839

Kata Kunci:

ESG, TATO, financial risk, financial perfomance

Abstrak

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) performance on corporate debt structure, with Total Asset Turnover (TATO) serving as a mediating variable. ESG has become an important consideration in investors’ and creditors’ decision-making processes, making it crucial to understand its impact on companies’ financial conditions. This study employs panel data from 88 publicly listed companies over a five-year period and applies an ESG path analysis approach. The results indicate that ESG performance has a significant negative effect on corporate debt levels, suggesting that firms with strong ESG practices tend to rely less on external financing. Furthermore, TATO is found to partially mediate this relationship, implying that asset utilization efficiency strengthens the influence of ESG on reducing debt dependence. These findings contribute to the sustainable finance literature and provide insights for corporate management in aligning sustainability objectives with financial strategies.

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Unduhan

Diterbitkan

2026-06-06

Terbitan

Vol 10 No 1 (2026): June

Bagian

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Lisensi

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