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

Adi Pratama

Accounting Study Program, Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia.

Bima Cinintya Pratama *

Accounting Study Program, Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia.

Sri Wahyuni

Accounting Study Program, Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia.

Ira Hapsari

Accounting Study Program, Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia.

*Author to whom correspondence should be addressed.


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.

Keywords: ESG scores, intellectual capital, human capital efficiency, structural capital efficiency, capital employed efficiency, firm financial performance

How to Cite

Pratama, Adi, Bima Cinintya Pratama, Sri Wahyuni, and Ira Hapsari. 2024. “Moderating Effect of Intellectual Capital Components on the Relationship Between ESG Scores and Firm Financial Performance”. Asian Journal of Economics, Business and Accounting 24 (6):477-95.


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