How Ownership Structure Shapes the Influence Between Esg Disclosure and Financial Performance? The Case of Nickel Industry

Abstract

This research investigates the impact of ESG disclosures on financial performance, with ownership structure as a moderating factor, in nickel companies. Adopting a quantitative method, the study compares annual and sustainability reports from the last ten years, providing 303 samples from 34 companies in ten countries—Indonesia, China, Japan, Russia, Canada, Norway, Australia, France, Brazil, and Finland—that together account for the world's biggest nickel producers and play a significant role in shaping the global nickel business. ESG performance is measured using 58 indicators from three conventional frameworks—the Global Reporting Initiative (GRI), the Initiative for Responsible Mining Assurance (IRMA), and the International Council on Mining and Metals (ICMM)—with the addition of two other indicators: Chromium Management and Life Cycle Assessment. The unbalanced panel data method is adopted, with content analysis combined with multiple regression analysis using EViews. The results show that governance has influenced ROA, whereas environmental and social aspects have no such effect. Ownership structure has neither direct influence on ROA nor moderating effects on the ESG–ROA relationship. This study suggests an inclusive ESG framework for the nickel industry, offering stakeholders practical recommendations to align operations, regulations, and investments with emerging ESG imperatives, and hence foster regulatory compliance, responsible investment, and sustainable value creation throughout the global nickel value chain.