PENGARUH FINANCIAL DISTRESS DAN KUALITAS AUDIT TERHADAP PENGUNGKAPAN ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) (STUDI KASUS PERUSAHAAN NON KEUANGAN YANG TERKENA SANKSI OJK VIII.G7 TAHUN 2016-2021

Environmental, Social and Governance (ESG) disclosure is an important indicator of transparency and sustainability commitment, especially for companies facing financial and reputational pressures due to regulatory sanctions. This study aims to analyze the effect of Financial Distress and audit quality on Environmental, Social, and Governance (ESG) disclosure in non- financial companies subject to OJK VIII.G.7 sanctions for the 2016-2021 period. This study uses a descriptive quantitative approach with secondary data collection through annual reports, sustainability reports, and official OJK documents. The research sample consisted of 7 non-financial companies that met the purposive sampling criteria. Data analysis was carried out using panel data regression to test the relationship between Financial Distress, audit quality, and Environmental, Social and Governance (ESG) disclosure. The results showed that Financial Distress had no effect on ESG disclosure, indicating that companies with financial pressure tend to reduce transparency in sustainability reporting. Furthermore, audit quality was shown to have no effect on ESG disclosure. Simultaneously, both independent variables had no effect on ESG disclosure.
Keywords: Financial Distress , audit quality, ESG disclosure, OJK sanctions, non- financial companies