Articles

Determinants of Sustainable Bond Yield among IDX-Listed Companies

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This study analyzes the development of sustainable bonds among IDX-listed companies in the post-Covid period of 2022 and identifies the factors influencing sustainable bond yields. The research observes 749 sustainable bonds issued by 93 IDX-listed companies. Multiple regression analysis is employed to explore the relationship between the bond yield as the dependent variable and sustainability factors—Number of Company-Supported SDGs, ESG Risk Ratings, CSR Funds, and GHG Emissions—as independent variables, along with control variables including three bond characteristics (Modified Duration, Issuance Size, Term to Maturity) and eight company characteristics (Board of Commissioners and Directors Diversity, Company Size and Age, ROA, Current Ratio, Industry, State-owned Enterprise status). The findings reveal positive correlations between the Number of Company-Supported SDGs and ESG Risk Ratings with bond yields, while CSR Funds and GHG Emissions show negative correlations with bond yields, indicating complex relationships between sustainability performance and sustainable bond yields. The study results suggest strategic recommendations for companies, investors, policymakers and regulatory bodies, as well as educational institutions to enhance the effectiveness and appeal of sustainable bonds in Indonesia.

Cultural and Natural Heritage Concerns and Cost of Equity: Case of Global Cement and Cement-Related Industries

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In recent business landscape, term of Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) is interesting for many investors who concern on that. By implementing SDGs and ESG, investors and companies are expect to participate in the world sustainable development target. One of the SDG metric is strengthen efforts to protect and safeguard the world’s cultural and natural heritage. With the 75 samples of cement and cement-related company across the world, this thesis delves into the nuanced of relationship between cultural and natural heritage issues and its cost of equity. Recognizing the profound impact of cultural and natural heritage concerns on corporate reputation, social license to operate, as well investor’s perception, this research endeavors to elucidate the intricate interplay between these variables through research approach encompassing quantitative methodologies. The result of this research is showing that cultural and natural heritage issue is negatively correlate to the cost of equity which means the better the cultural and natural heritage score of a company, the lower its cost of equity among its peers. The regression analysis result in P-Value 0.016; coefficient -6.12 for cultural and natural heritage index impact to cost of equity (in market model) and in P-Value 0.033; coefficient -5.30 for cultural and natural heritage index impact to cost of equity (in Bloomberg CAPM), which considered significant. Implication of these finding are that cultural and natural heritage issue can be a threat for the company image as well can influence various aspects of company activities, if it is not well managed.  Therefore, companies should start concern on any cultural and natural heritage since it has significant implication for investor’s decision and perception which can be depicted in its each cost of equity.

Relevance of Inclusive Finance with Sustainable Development Goals (SDGs) Perspective of Maqashid Sharia

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This research aims to find out the right financing scheme so that the implementation of SDGs is more optimal and beneficial for small communities. inclusive financial contributions (zakat, infak and alms) in realizing SDGs and their relevance in realizing SDGs from a sharia maqashid perspective. This study uses a combination of qualitative-quantitative methods and approaches. Quantitative data analysis used is a method of tabulation, composing coding and score of variables. While qualitative data analysis includes the stage of data reduction, presentation and withdrawal of conclusions The results of this study show that the implementation of SDGs is carried out by a joint financing scheme through government and non-government budgets, one of which is through the distribution of zakat. The contribution of zakat in the implementation of SDGs has been carried out by the National Zakat Agency (Baznas) in the form of independence programs, religious education, health and social care. The relevance of zakat in realizing SDGs with Sharia Maqashid is shown in aid programs organized by Baznas such as the Program (1) eliminating poverty, (2) ending hunger, (3) good health and well-being, (4) quality education, and (5) clean water and sanitation relevant to the SDGs Program.