Corporate Governance Mechanisms, CEO Power, And Their Impact On Environmental Performance

Abstract

This study aims to analyze the influence of institutional ownership, managerial ownership, independent commissioners, audit committees, and CEO power on the environmental performance of consumer goods manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2023 period. Environmental performance is measured using the PROPER rating, which reflects the level of corporate compliance with environmental management standards. The population in this study consists of consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. The research data was obtained through the purposive sampling method, with a total of 39 companies observed from annual reports and sustainability reports. Data analysis was conducted using multiple linear regression. The results show that institutional ownership, managerial ownership, and independent commissioners significantly influence environmental performance. However, the audit committee and CEO power do not have a significant effect. This study is expected to provide insights for corporate management to improve environmental performance and support business sustainability through the implementation of good corporate governance.