Analysis Of The Mediation Effect Between Corporate Governance On Investor Confidence
DOI:
https://doi.org/10.35870/jemsi.v12i5.7037Keywords:
Corporate Governance, Investor Confidence, Going Concern, ESG, Corporate ReportingAbstract
This study examines how Investor Confidence is influenced by Corporate Governance, as well as the mediating roles of Going Concern, ESG initiatives, and Corporate Reporting in the Indonesian banking sector listed on the IDX during the 2023-2024 period. Quantitative method of research with purposive sampling was used. The results indicate that Corporate Governance has role to play in Going Concern and Corporate Reporting with significant negative impact, but significantly positive role in ESG performance and Investor Confidence. Going Concern shows a significant negative relationship with Investor Confidence; however, it positively mediates the connection among Corporate Governance and Investor Confidence. ESG demonstrates a significant positive effect on Investor Confidence and effectively serves as a positive mediator among Corporate Governance and Investor Confidence. Then, Corporate Reporting has no effect on Investor Confidence and doesn’t mediate the relation among Corporate Governance and Investor Confidence. These findings indicate that baking sector investor confidence is more influenced by good governance mechanisms and sustain-ably practices than on only high quality financial reporting. Accordingly. Banks are encouraged to further improve board structure and governance quality, incorporate ESG factors into long-term strategic planning, reinforce risk management and business resilience, and reshape corporate reporting towards more investor-focused disclosures in particular for risk disclosure and forward-looking information.
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