The Role Of CEO Power In Driving ESG Performance Among IDX Infrastructure Companies

Abstract

This study examines whether CEO power shapes Environmental, Social, and Governance (ESG) performance among Indonesian infrastructure issuers. Using a balanced panel of 24 IDX-listed firms (2019–2023; 120 firm-years) compiled from Refinitiv ESG and corporate disclosures, we estimate random-effects regressions with robust errors. ESG scores are modeled on CEO tenure, CEO ownership, and CEO duality, with firm size, leverage, and profitability as controls. Results indicate that CEO tenure is positively and significantly associated with ESG, suggesting that experienced—yet non-entrenched—leadership advances sustainability practices. CEO duality shows a positive but statistically insignificant association, while CEO ownership is negative and insignificant. Overall model fit is modest (R² ≈ 0.20), implying that external pressures and broader governance architecture also drive ESG outcomes. The findings highlight the practical role of stable executive leadership in delivering stakeholder welfare through sustainability, while concentrated personal control does not reliably improve ESG performance. Future work should test nonlinearities and governance interactions to address potential heterogeneity and endogeneity.