Connection Between the Audit Characteristics and Corporate ESG Performance in Indonesia

Abstract

This research delves into the essential connection between audit committee characteristics and the ESG performance of corporations in Indonesia. Existing studies emphasize the pivotal role of audit committees in shaping ESG outcomes, focusing on factors like independence, expertise, and committee size. However, there is a limited comprehensive examination of these dynamics within the context of Indonesian businesses. The study seeks to empirically examine the correlation between audit committee characteristics and corporate ESG performance among listed companies on the Indonesia Stock Exchange, explicitly exploring four key attributes. The results highlight a noteworthy influence of Audit Expertise and Internal Auditor characteristics on corporate ESG performance. These findings provide valuable insights for companies, auditors, and policymakers, offering empirical evidence to enhance comprehension and practices related to corporate governance and ESG performance. Furthermore, the study's implications extend beyond the Indonesian context, contributing to a broader understanding of the global discourse on sustainable business practices.