Does Sustainability Risk and Corporate Governance Quality Matter to Investors' Level of Investment?
Does Sustainability Risk and Corporate Governance Quality Matter to Investors' Level of Investment?
Author(s): Rindah Febriana Suryawati, Amaliyah Amaliyah, Arif WIDYATAMA, Abdullah MazniSubject(s): Energy and Environmental Studies, Environmental interactions, Green Transformation
Published by: Transnational Press London
Keywords: Corporate Governance Quality; Investment Judgment Level; Stakeholder Theory; Sustainability Risk;
Summary/Abstract: This research examines sustainability risk (SR) and corporate governance quality (CGQ) on investor investment (CG). The level of SR used uses SR with low and high conditions. Further, the level of CGQ uses good and bad CG implementation quality.This research method uses a website-based experimental approach. This experimental study used 2x2 between subjects, and participants were randomized into different groups.The results of this research show that companies with a low level of sustainability risk will be more attractive to investors when investing compared to companies with a high level of sustainability risk. Apart from the risk aspect, a good company's CG quality will provide investment guarantees for investors compared to a poor CG quality.This research demonstrates how the SR affects the Investment Judgment Level. In addition, SR and CGQ have an impact on the degree of investing judgment. This study supports the stakeholder theory by demonstrating that businesses can achieve long-term stability and profitability by controlling their sustainability risks. contribute to sustainability risk analysis as a critical factor in investment decisions, not just traditional financial factors. Research on the impact of SR and CGQ on investment decisions remains restricted. Previous research has limited the measurement of corporate governance to the governance structure. This research provides specific evidence by experimental method, where the Corporate Governance was treated differently in the experiment material as well as the the Sustainability Risk to check whether those information impact on the level of investment.
Journal: Journal of Ecohumanism
- Issue Year: 4/2025
- Issue No: 2
- Page Range: 445-458
- Page Count: 14
- Language: English
