Today's corporate competition is fiercer due to globalization. This causes environmental degradation and societal injustice. Companies aim for maximum profit, but they often use resources and society uncontrollably, which harms the environment and human lives, especially in the places where they operate. Production uses natural resources, therefore consumption and the environment are linked. Thus, resource and waste management must balance human demands and environmental sustainability. Thus, companies must establish strategies and practice corporate ethics that help the environment (Financial Services Authority, 2020). Businesses affect the environment, society, government, and more. Thus, organizations must adapt to their surroundings. Business ethics drives environmental initiatives. Environmental, social, and corporate governance responsibilities benefits society (Lubis & Tarigan, 2002). Companies need CSR to preserve community support and confidence. The Triple Bottom Line—profit, social, and environment—underpins CSR. Law no. 40 of 2007 Article 74 also promotes CSR in Indonesia. Indonesian companies who publish sustainability reports are intended to improve investor relations, consumer loyalty, and company profitability. Sustainability leaders must also meet environmental, social, and financial requirements (R. Haniffa & Hudaib, 2002). An activity or business must make money, be socially acceptable, and safeguard the environment. Companies can include social and economic factors in sustainability reports to demonstrate social and environmental responsibility to stakeholders. Only 9% of Indonesia Stock Exchange companies submit sustainability reports, despite the trend. Sustainability reports should improve investor relations, customer loyalty, and firm performance. Public trust in sustainability report disclosure rose to 51%, with Indonesia having the highest rating at 81% (Sustainability Stock Exchange, 2015). ESG performance can preserve a company's worldwide stock market performance. However, the Indonesia Stock Exchange does not have formal criteria or demand ESG reporting for listing. Sustainable capital market leadership demands methods that meet environmental, social, and financial standards. Environmental harm and climate change are risks of business. Sustainability leadership is business and environmental continuity. Sustainability leadership abilities are needed to define the organization's vision and objective and strategically implement it to achieve competitive advantage with a focus on environmental protection and healthy living. Environmental, Social, and Governance (ESG) information transparency requires systematic education and continuing marketing. (Eccles, 2011). Investors now include ESG (Environmental, Social, and Governance) elements in firm performance. High ESG scores have been linked to higher performance and profitability. ESG/SRI companies have higher and more sustainable returns on investment, and a good environment increases corporate value. Business practices are becoming more environmentally conscious and socially beneficial. However, Indonesia's Islamic ESG measurement and study are still lacking. Barraq Mellina Zahroh and Hersugondo studied the Indonesia Stock Exchange's ESG Performance and Financial Performance with the CEO as the Moderating Variable in Manufacturing Companies in 2019. Social and governance performance improves financial performance, while environmental performance does not. The CEO cannot mitigate the financial impact of environmental and social performance. In 2020, Indarawati Tarmuji, Rohanita Maelah, Habibah, and Tarmuji studied how ESG practices affect Malaysian and Singaporean economies. Results reveal that ESG responsibility is tied to company performance and sustainability. It can foster a socially responsible workplace. Murniati Mukhlisin examined the implementation of Islamic maqasid in Islamic financial reporting requirements in 2020. Norashikin Ismail, Mohamad Azwan Md Isa, Nor Hadaliza Abd. Rahman, and Nurul Farhana Mazlan studied Sustainability Performance with ESG in Malaysian public firms in 2020. Sustainability performance (ESG) weakly and significantly correlates with financial success (ROA). Thus, this study will evaluate how Environmental Social and Governance (ESG) implementation plan, measure, and sustain might improve Indonesia's FSI. Thus, "Moderation of Leaders in the ESG Disclosure Model for Improving Company Financial Performance" was researched. This study introduces new issue statements and objectives for measuring financial performance using Environmental, Social, and Governance (ESG) in an Islamic context. Problem statement: JII corporation financial performance and environmental performance, JII corporation financial performance and social performance, JII corporation financial performance and governance performance, Moderating leaders in Jakarta Islamic Index Indonesia (JII) companies' environmental performance on financial performance, Moderating leaders in Jakarta Islamic Index Indonesia (JII) companies' social performance on financial performance, How governance performance affects financial success by moderating executives in Jakarta Islamic Index Indonesia (JII) enterprises

A quantitative technique was applied in this associative investigation. Theory is placed at the beginning of a research plan (deductive) to examine a theory in this technique. The researcher first defines the theory, then develops a hypothesis containing the variables to be measured and collects data to test the theory. The quantitative approach focuses on the numerical measurement of research variables and data analysis using static processes and systematic modeling to investigate parts, phenomena, and their relationships (Salim and Syahrum, 2012). This quantitative research method is distinct and well-planned from the start to the end (Rahmani, 2016). The data used is panel data type, which consists of time series data and cross section data, which includes several objects and several times. Multiple regression was used to reveal the functional relationship between the independent and dependent variables, and data analysis was performed using Eviews v.10 software. Parameters in the cross section data regression analysis were estimated using the OLS method. Panel data regression test was conducted to identify the relationship between the independent variables, environmental performance, social performance, and governance, with the dependent variable financial performance, which is moderated by the example of the leader.The test used is the Moderated Regression Analysis (MRA) or interaction test, in which the regression equation contains an element of interaction (multiplication of two or more independent variables).

This study uses the MRA test to evaluate the extent of the interaction between environmental performance, social performance, and governance variables on the dependent variable of financial performance through the moderation of the leader's example. A purposive sampling technique was used in this study to select a sample from a population of 30 companies registered on the Jakarta Islamic Index during 2017-2021. The criteria used in selecting the sample included companies having to be registered with the Jakarta Islamic Index for six periods from 2018-2021, using the Rupiah currency, and issuing annual reports for the last three years. For this study, the data used came from campus documentation studies and previous research, such as annual reports of companies listed on the Jakarta Islamic Index for the last four years, as well as journals relevant to the topics discussed. In panel data analysis using the regression model, there are three approach options, the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). In this study, the FEM approach was used which involved the use of dummy variables to capture differences in intercepts between companies that might occur due to differences in work culture, managerial, and intensity. The FEM approach also assumes that the regression coefficients remain stable between firms and over time. To determine the most appropriate model, the Chow Test and Hausman Test can be carried out.

a. Chow Test

Chow test, which is used to determine a more precise model between the Common Effect Model (CEM) or the Fixed Effect Model (FEM). If the F and Chi-Square probability values are greater than alpha (α) = 5%, then the appropriate model is CEM, whereas if the F and Chi-Square probability values are smaller than alpha (α) = 5%, then the appropriate model is FEMs.

b. Hausman Test

The Hausman test is used to choose between FEM or Random Effect Model (REM) which is more appropriate for panel data. If the Hausman statistical value is greater than the Chi-Square critical value, then the right model is FEM, whereas if the Hausman statistical value is less than the Chi-Square critical value, then the right model is REM. The Hausman test is based on the idea that Least Squares Dummy Variables (LSDV) in FEM and Generalized Least Squares (GLS) in REM are efficient while Ordinary Least Squares (OLS) in CEM are not efficient.

c. Classic Assumption Test

Classical assumption test also needs to be done to ensure the validity of the relationship in the regression analysis. This test aims to ensure that the multiple regression model meets the assumptions of normality of the data and is free from classical statistical assumptions such as multicollinearity, autocorrelation and heteroscedasticity. By ensuring that the regression model meets the classical assumptions, it can be ensured that the results of the regression analysis carried out have a high level of confidence. In the regression analysis, there are several basic assumptions that required:

The multicollinearity test aims to test the existence of a correlation between independent variables in the regression model. If there is a correlation between the independent variables, then there is a multicollinearity problem. To detect the existence of multicollinearity in the regression model, it can be done by looking at the Centered Variance Inflation Factor (VIF). Centered VIF values greater than 10 indicate the presence of multicollinearity in the regression model.

The heteroscedasticity test aims to test for differences in the residual variance of observations between one another in the regression model. A good regression model is homoscedasticity. To detect the existence of heteroscedasticity, it can be seen in the probability value of each variable. If the probability value is less than 0.05, there is heteroscedasticity in the regression model.

b. Simultaneous Test (Test F)

The F test is used to test the effect of the independent variables together on the dependent variable. Before starting the test, the value of Ftable must be known by using the formula Ftable = nk, withcertain a (0.05). There are two conditions that must be met in this test. First, if F count is less than F table, then the null hypothesis (H0) is accepted and the alternative hypothesis (Ha) is rejected, which means that the independent variable has no simultaneous effect on the dependent variable. Second, if F count is greater than F table, then H0 is rejected and Ha is accepted, which means that the independent variables simultaneously affect the dependent variable. In addition, the significance of F at the level of α used (usually 5%) can also be analyzed. If the significance value of F is less than 0.05, then the hypothesis is tested and the independent variables simultaneously have a significant effect on the dependent variable. However, if the significance value of F is greater than 0.05,then the untested hypothesis and the independent variables simultaneously have no significant effect on the dependent variable.

c. Coefficient of Determination (R-Square)

The determining coefficient is used to measure how well the model can explain the variation of the dependent variable. If the determinant coefficient value is low, then the model has limitations in explaining the variation of the dependent variable. Conversely, if the value is close to one, then the independent variable can provide almost perfect information to predict the dependent variable.

Hypothesis testing is done through the t test, which aims to test the regression coefficients partially. Before determining the accuracy of the partial hypothesis, it must first know the value of the t table. If the calculated t value is less than the t table value, then the null hypothesis (H0) is accepted and the alternative hypothesis (Ha) is rejected, which means that the independent variable has no significant effect on the dependent variable. However, if the calculated t value is greater than the t table value, then H0 is rejected and Ha is accepted, which means that the independent variable has a significant influence on the dependent variable. In addition, testing can be done by looking at the probability value at the significance level used. If the probability value is less than 0.05,then the hypothesis is tested and the independent variables have a significant effect on the dependent variable, but if the probability value is greater than 0.05, then the hypothesis is not tested and the independent variables have no significant effect on the dependent variable.

After collecting annual report data from 24 companies in the sample using Eviews software and panel data processing techniques from 2018 to 2021, a panel data regression test was performed to test the relationship between the independent variables, Environmental Performance, Social Performance, and Governance Performance, to the dependent variable of Financial Performance with Moderation of the Leader's Example. There are three types of approaches in panel data regression, the common effect model (pooled least squares), fixed effect model, and random effect model, each of which has advantages and disadvantages. In addition, two types of tests, the Chow Test and the Hausman Test, are also used to choose the right approach model.

Based on Table 1, the probability value of the cross section on the Chow Test is 0.0000, which means the probability value is <0.05. In addition, with an F statistic value of 23.93 > F table (2.700), H0 is accepted and H1 is rejected, so the fixed effect model is selected based on the results of the Chow test.

After the Chow test, the Hausman test was carried out to choose between the fixed effect model and the random effect model. The following are the results of the Hausman Test:

The results of the Hausman test in Table 2 show that the probability value of a random cross section is 0.1748, which means the probability value is > 0.05. Therefore, H0 is rejected and H1 is accepted, and the random effect model is selected based on the results of the Hausman test. Thus, it can be concluded that the most appropriate approach model for this study is the random effect model after the Chow Test and Hausman Test were carried out. As for the selection of the approach model, it must meet the correct assumptions and statistical data processing requirements, so that the results can be statistically justified.

In the residual normality test, the Jarque-Bera value was 23.32200 with a p-value of 0.000014. A small p-value indicates that the residuals are not normally distributed, so the alternative hypothesis (H1) is accepted.

Multicollinearity test was conducted to check whether there is a significant correlation between the independent variables in the regression model. The multicollinearity test results in Table 3 show that there is no correlation value that exceeds 0.90 between the independent variables, so it can be concluded that there is no multicollinearity in the regression model.

b. Descriptive Analysis

In the results of the descriptive analysis for the variables Environmental Performance, Social Performance, and Governance Performance, the following information is obtained:

In Table 4, the information obtained from the descriptive analysis for the variables Environmental Performance, Social Performance, and Governance Performance are as follows:

Multiple linear regression analysis was performed to examine the effect of three independent variables, Environmental Performance, Social Performance, and Governance Performance, on the dependent variable Financial Performance as measured using a metric.

c. Regression Model Before Moderation

Table 5 shows the results of this analysis, where the constant coefficient value of Financial Performance is -3.276, indicating that in regression, financial performance has no potential and is very low against the other three variables. The variables of Environmental Performance and Social Performance have a significant positive effect on Financial Performance of 31.11% and 48.76% respectively, while the Governance Performance variable has not had a significant positive effect on Financial Performance of 24.01%.

d. Moderation Models

Table 6. Moderation Results

Furthermore, the panel data analysis in Table 6 shows that“The regression equation for this study is Y = -2.2676 + 0.003804 β1+ 0.006279 β2 - 0.000147 β3 + e, where the probability value (p) for the variables Environmental Performance, Social Performance, and Governance Performance respectively are 0.0914, 0.0067, and 0.8913 respectively. These results indicate that the moderation of the leadership's example in the Governance Performance variable results in the value of governance performance becoming less significant and having a limited effect on financial performance.

e. Hypothesis Test

In this analysis, the null hypothesis (H0) states that there is no effect between the Environmental Performance (X1) of companies listed on the Jakarta Islamic Index and Financial Performance, while the alternative hypothesis (Ha) states that there is a positive and significant The effect between the two.

To test this hypothesis, the t table value obtained through the nk-1 formula is used, where k is the number of independent variables and n is the number of respondents, in this case k = 3 and n = 120, so that a t table value is obtained 1.65810.

The results of the analysis in Table 7 show that the probability value of the X1 variable is 0.0679, which is greater than the alpha level of 0.05. In addition, the calculated t value is 1.842, greater than the t table value of 1.65810. Furthermore, the regression coefficient for the Environmental Performance variable is +3.139, which indicates that every increase of one unit of Environmental Performance can increase Financial Performance by 3.139%. Thus, it can be concluded that H0 is rejected and Ha is accepted, which means that there is a positive and significant The effect between the Environmental Performance variables of companies listed on the Jakarta Islamic Index on Financial Performance.

In this study, H0 stated that there was no effect between the Social Performance (X2) of companies listed on the Jakarta Islamic Index and Financial Performance, while Ha stated that there was a positive and significant The effect between the two variables.

To test this hypothesis, the value of t table is used which is calculated by the formula n - k - 1, where n is the number of respondents and k is the number of independent variables or X. In this case, the number of independent variables is 3 and the number of respondents is 120, so obtained t table value of 1.65810. The results of the analysis show that the calculated t value is 1.086, which is obtained from the comparison between the data in Table 8 and the t table. In addition, the probability value of variable X2 in Table 8 is 0.2797, which is greater than the significance level of 0.05. The regression coefficient for the Social Performance variable is 4.7732, which indicates that every increase of one unit of Social Performance can increase Financial Performance by 4.7732%. Based on the results of this analysis, it can be concluded that H0 is rejected and Ha is accepted,which means there is a significant influence between the Social Performance of companies listed on the Jakarta Islamic Index and Financial Performance.

In testing this hypothesis, it is assumed that there is no effect between the performance of corporate governance listed on the Jakarta Islamic Index (X3) and financial performance (H0), but the alternative hypothesis states that there is a positive and significant effect between the two variables (Ha).

Based on the calculation results, it was found that the calculated t value was 0.8401, while the t table value was 1.65810. The probability of variable X3 is also found to be greater than 0.05, which is equal to 0.4025. Therefore, it can be concluded that the null hypothesis is rejected and the alternative hypothesis is accepted, indicating that there is a positive and significant relationship between corporate governance performance and financial performance. The regression coefficient for variable X3 is +2.2935, meaning that every one unit increase in governance performance can increase financial performance by +2.2935%.

According to the information presented in Table 10, the probability value of the moderating variable Z with respect to the dependent variables x1 to Y is 0.1249, which is more than 0.05. This shows that there is no significant association between the moderating variable and the variable that is being moderated. However, the regression coefficient for the environmental performance variable is equal to +0.0172, which indicates that there is a positive effect of environmental performance on financial performance in companies listed on the Jakarta Islamic Index. This is something that can be explained by the leadership's moderation because environmental performance is positively correlated with financial performance. Therefore, the alternative hypothesis is accepted, which indicates that there is a positive and significant moderating influence of Environmental Performance by Leadership on Financial Performance in firms that are listed on the Jakarta Islamic Index. This conclusion follows from the rejection of the null hypothesis and the acceptance of the alternative hypothesis.

In order to test this hypothesis, it is assumed that H0 does not have a moderating influence between leadership and environmental performance (X1) on financial performance (y) in firms that are listed on the Jakarta Islamic Index, whereas Ha implies that there is a moderating effect. This is done so that we can test whether or not H0 does have a moderating effect. It is possible to draw the conclusion that there is not a significant association between the moderating variable and the dependent variable since the probability value of the moderating variable Z with x1 to Y in Table 10 yields a value of 0.1249, which is bigger than alpha (0.05), as a result of which it is possible to draw that conclusion. The regression coefficient for the variable Environmental Performance is +0.0172, which indicates that there is a positive influence of Environmental Performance on Financial Performance in companies listed on the Jakarta Islamic Index. This can be explained by the moderation of the leadership. However, the correlation between Environmental Performance and Financial Performance is negative. As a result, the null hypothesis, H0, is found to be false, and the alternative hypothesis, Ha, is found to be true. This indicates that there is a positive and significant moderating influence on Environmental Performance by Exemplary Leadership on Financial Performance in companies that are listed on the Jakarta Islamic Index.

After analyzing the data using Eviews software version 10, the following conclusions can be drawn from the research results:

a. The Effect of Environmental Performance on Financial Performance in Companies listed on the Jakarta Islamic Index

The value of the probability variable X1 is shown to be 0.0679, which is more than 0.05 inTable 7. In addition, the difference between the t count and the t table is 1.842, which is greater than 1.661. The environmental performance variable has a regression coefficient of +3.139, which suggests that an increase in environmental performance can lead to an increase in financial performance of 3.139% for every one unit of environmental performance that is improved. As a result, one might draw the conclusion that Hypothesis 0 (H0) is not supported but Hypothesis 1 (Ha) is, which indicates that there is a positive and substantial The correlation between a company's environmental performance and its financial performance, as measured by the Jakarta Islamic Index.

b. The Effect of Social Performance on Financial Performance in Companies listed on the Jakarta Islamic Index

Table 8 shows that the value of the variable X2 has a probability of 0.2797 > 0.05, and that the difference between the t count and the t table is 1.086 1.658. In addition, a boost of one unit in Social Performance is associated with a rise of 4.7732 percentage points in Financial Performance (as measured by the regression coefficient for the Social Performance variable). The effect between Social Performance and Financial Performance in companies included in the Jakarta Islamic Index is thus recognized, while H0 is thus rejected.

c. The Effect of Governance Performance on Financial Performance in Companies Listed on the Jakarta Islamic Index

The effect between governance performance and financial performance is favorable and statistically significant in Jakarta Islamic Index companies.Table 9's X3 probability value is 0.4025 > 0.05, and the regression coefficient of the Governance Performance variable is +2.2935, therefore this is the case. Therefore, it is reasonable to draw the conclusion that corporate governance plays a significant role in the growth of the organization by helping to disseminate the values of equity, responsibility, and openness.

d. The Effect Between Exemplary Leadership Moderation (Z) and Environmental Performance (X1) on Financial Performance (Y) in Companies Listed on the Jakarta Islamic Index

Exemplary leadership, defined as "encouraging work," "providing advice," "motivating capacity building," "approaching work rules and procedures," and "providing important directions in managing the environment," has been shown to improve environmental performance and financial performance in companies included in the Jakarta Islamic Index. The regression coefficient of the Environmental Performance variable is +0.0172, and the probability value of the Moderation variable Z with X1 to Y in Table 10 is 0.1249 > 0.05, therefore these two numbers together indicate that this is the case. This study provides new evidence that a leader's example can be used as a moderating element to significantly boost an organization's environmental and financial performance.Companies' environmental performance is critical to their bottom lines because it boosts their credibility in the eyes of customers and potential investors.

e. The Effect of Leaders' Moderation (Z) and Social Performance (X2) on Financial Performance (Y) in Companies Listed on the Jakarta Islamic Index

Table 11 shows the correlation between leader moderation (Z) and social performance (X2) and financial performance (Y) for Jakarta Islamic Index firms. Statistical analyses, however, reveal that the relationship between Moderating Environmental Performance with Leaders' Leadership and Financial Performance (X1) is not a good one. This demonstrates that a company's financial success cannot be directly attributed to the actions of its top executives. According to the Global Reporting Initiative (GRI), public reporting on a company's social performance can serve as a platform for the organization's legitimacy in the eyes of society because it demonstrates accountability and transparency to stakeholders. Good corporate governance (X3) has been proven in previous research to act as a moderator, mitigating the positive effects of other variables. The correlation between social and economic success. Disclosure of employment, human rights, society, and product accountability are all part of the GRI's "social dimension.".

f. The Effect of Leaders' Moderation (Z) and Governance Performance (X3) on Financial Performance (Y) in Companies Listed on the Jakarta Islamic Index.

Table 12 shows that there is a 0.00220.05 chance that the Moderation variable Z has x3 equal to Y. In this situation, the moderating influence of leadership example and governance performance on financial performance is explained by the Governance Performance variable's +0.0003 regression coefficient. Therefore, we accept the null hypothesis, which states that there is no positive and significant influence of governance performance moderation and Exemplary Leadership on financial performance (X1) in companies included in the Jakarta Islamic Index, and reject the alternative hypothesis, which states that there is such an effect. According to this research, following a leader's example is not particularly effective. These findings are consistent with Rifqi Kurniarsa's prior work examining the moderating role of family control in the relationship between corporate governance and firm success. The research indicated that the audit committee has a positive and substantial effect on ROA but a small negative effect on Tobin's Q, whereas the board of commissioners, which represents corporate governance, has a positive and significant effect on both metrics. One model shows that family control cannot moderate the positive effect of governance on company performance, while seven other models show that family control either weakens or strengthens the positive effect of governance on company performance.

g. The Simultaneous Effect Between Environmental Performance, Social Performance, And Governance Performance With Financial Performance

According to the available data, the probability of the statistical F value is 0.000086 0.05. Comparing the calculated F value to the F table, 7.8054 > 2.68, leads to the conclusion that H0 is rejected and Ha is accepted. Consequently, it can be concluded that there is a concurrent The impact of environmental performance, social performance, and governance performance on the financial performance of an organization. This finding is consistent with previous research, such as that conducted by Barraq Mellina Zahroh and Hersugondo, which demonstrated that environmental performance has no significant effect on financial performance, whereas social performance and governance performance have a positive and statistically significant effect on financial performance. In addition, M. Lubis and R. Rokhim's research indicates that the application of ESG to company performance can provide substantial benefits and have an impact on sustainable economic development in Indonesia based on ISE data for 52 companies from 2015 to 2019. However, the CEO's authority cannot mitigate the impact of environmental and social performance on the company's financial performance.

h. Components of Research Economic Phenomena

Researchers have conducted a study examining the effect of Jakarta Islamic Index-listed companies on Financial Performance. In this study, not only did the researchers conduct a quantitative analysis of the available data, but they also considered Islamic economic phenomena that occurred between 2016 and 2019. The results of quantitative analysis are supported by Islamic economic phenomena, such as the establishment of the National Islamic Economics and Finance Committee in 2016. As an institution established to strengthen the Islamic economic and financial ecosystem, KNEKS has provided significant benefits to companies listed on the Jakarta Islamic Index in terms of systematized synchronization, coordination, and regulation pertaining to Islamic economics and finance. This study provides a more in-depth description of the Islamic economy in Indonesia from 2016 to 2019, focusing on the role of companies listed on the Jakarta Islamic Index in enhancing Indonesia's financial performance. The Jakarta Islamic Index was created to increase investor confidence in investing in sharia-based equities and to provide investors with benefits for implementing Islamic sharia principles in stock exchange investing. This index is also anticipated to promote the transparency and accountability of sharia-based stocks in Indonesia and serve as a guide for investors who wish to invest in accordance with sharia principles, allowing them to do so without concern of their funds becoming entangled with usury funds..

After evaluating the previous chapter's discussion, the findings of this study conclude the following: Environmental performance and financial success are positively and significantly related with companies included on the Jakarta Islamic Index Indonesia (JII). In companies included on the Jakarta Islamic Index Indonesia (JII), there is a positive and significant association between social performance and financial performance. The governance performance of companies listed on the Jakarta Islamic Index Indonesia (JII) has a favorable and significant association with financial performance. Environmental sustainability has a positive and significant impact on financial success, as demonstrated by companies featured on the Jakarta Islamic Index Indonesia (JII). There is no positive and significant impact of social performance on financial performance in companies listed on the Jakarta Islamic Index Indonesia (JII). There is no positive or substantial effect of governance performance on financial performance of companies listed on the Jakarta Islamic Index Indonesia (JII). Several proposals should be considered based on the conclusions above, including: To achieve the intended return, investors must assess the company's financial position as well as the application of environmental, social, and governance policies. To boost supervision and increase stock returns, corporations must align environmental, social, and governance implementation with the company's management model and take into account the characteristics of the board of directors and independent officers. Future research should look at corporate governance factors from a qualitative standpoint and track changes in the application of corporate governance principles, financial performance, and firm stock performance through time.