ENHANCING FINANCIAL PERFORMANCE THROUGH ESG, CORPORATE GROWTH, AND GREEN INNOVATION: THE MODERATING ROLE OF AUDIT QUALITY

ABSTRACT : This study aims to analyze the effects of Environmental, Social, and Governance (ESG), corporate growth, and green innovation on financial performance, as well as the role of audit quality as a moderating variable. The sample consists of 40 food and beverage companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The data were analyzed using panel data regression. The results show that ESG and corporate growth have positive and significant effects on financial performance. Conversely, green innovation does not have a significant effect because its economic benefits have not yet been directly realized due to high implementation costs, the need for research funding, and regulatory constraints. Audit quality is proven to strengthen the effects of ESG and corporate growth on financial performance, but it does not moderate the effect of green innovation. Thus, audit quality enhances the credibility of ESG- and growth-related information but has not yet been able to overcome the economic barriers associated with the implementation of green innovation.This study is limited to food and beverage companies during the 2021–2024 period and to the use of specific measurement indicators for financial performance and corporate growth. Future research is recommended to use more recent periods, expand the research scope, and include additional variables such as good corporate governance and the Debt-to-Asset Ratio (DAR).

KEYWORDS: ESG, corporate growth, green innovation, financial performance, audit quality.