Examining The Role of Foreign Ownership and Media Exposure in Environmental Performance: Evidence from Indonesia
DOI:
https://doi.org/10.23917/reaksi.v11i2.20482Keywords:
foreign ownership, environmental performance, media exposure, ESG, corporate governanceAbstract
This study aims to examine the effect of foreign ownership on environmental performance and to analyze the role of media exposure as a moderating variable. Foreign ownership is regarded as a governance mechanism capable of promoting corporate transparency and accountability, whereas media exposure is presumed to intensify the legitimacy pressure faced by firms. This study employs a sample of 74 firm-year observations from basic materials sector companies actively listed on the Indonesia Stock Exchange (IDX) during the 2022-2024 period. The sample was selected using a purposive sampling method. Data were analyzed using multiple regression and Moderated Regression Analysis (MRA) with SPSS. The results show that foreign ownership has a positive and significant effect on environmental performance. The moderation test results reveal that media exposure weakens the positive relationship between foreign ownership and environmental performance, indicating a substitutive relationship between the two monitoring mechanisms. These findings provide theoretical contributions to the literature, particularly the ESG and corporate governance literature, as well as practical implications for investors, management, and regulators in formulating strategies to improve corporate environmental performance.
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