Impact of Corporate Hedging and ESG on Stock Price Crash Risk: Evidence from Indonesian Energy Firms

Q3 Business, Management and Accounting

Indian Journal of Corporate Governance Pub Date : 2022-12-01 DOI:10.1177/09746862221129341

Febiriyanti Ayu Octaviani, C. Utama

引用次数: 1

Abstract

Corporate hedging and environmental, social and governance (ESG) affect the transparency of a firm’s information environment because they can reduce information asymmetry and volatility of cash flow. Focus of this research investigates the impact of corporate hedging, as a risk management strategy, and ESG on stock price crash risk in Indonesian energy firms. This study finds that both hedging and ESG do not affect stock crash risk. This may be caused by a natural hedge conducted by the company. Another explanation is, most energy companies in Indonesia that use hedging do not report the proportion of the amount of hedging on the company’s financial statements. Further, this study fails to find the effect of ESG on stock crash risk. This finding corroborates Silva (2022), who states that the benefit of ESG is less effective in developing countries like Indonesia, which are characterised by weak investor protection and regulation enforcement.

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企业套期保值和ESG对股价暴跌风险的影响——来自印尼能源公司的证据

企业套期保值和环境、社会和治理（ESG）会影响企业信息环境的透明度，因为它们可以减少信息不对称和现金流的波动。本研究的重点是调查企业对冲作为一种风险管理策略和ESG对印尼能源公司股价暴跌风险的影响。本研究发现，套期保值和ESG都不会影响股票崩盘风险。这可能是由公司进行的自然对冲造成的。另一种解释是，印尼大多数使用套期保值的能源公司没有在公司财务报表中报告套期保值金额的比例。此外，本研究未能发现ESG对股票崩盘风险的影响。这一发现证实了Silva（2022）的观点，他指出，ESG的好处在印度尼西亚等发展中国家效果较差，这些国家的特点是投资者保护和监管执行不力。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Indian Journal of Corporate Governance Business, Management and Accounting-Business and International Management

CiteScore

2.00

自引率

0.00%

发文量

期刊介绍： Indian Journal of Corporate Governance is a bi-annual refereed journal that provides a forum for discussions and exchanging views on a wide range of corporate governance issues ranging from board practices, independent directors, whistle blower policies and shareholder activism on one hand to media’s role in corporate governance, corporate social responsibility and sustainability reporting on the other. It comprises of research articles, concept papers, case studies and reports providing a blend of theory and practices of corporate governance globally to cater to the interests of practitioners, academics, researchers and policy makers.