Corporate Social Responsibility, Corporate Governance, Firm Size and Financial Performance of Companies in Indonesia

Abstract

Financial performance is critical to the company's survival. One of the goals of forming a corporation is to maximize its worth, as evidenced by the performance of its financial accounts. Investors can make decisions about a company's investing activities by measuring financial performance. As a result, investors will expect corporations to provide high-quality financial performance reports. This study sought to investigate the impact of corporate social responsibility, corporate governance, and firm size on financial performance. This study makes use of secondary data from manufacturing firms registered on IDX (Indonesia Stock Exchange) between 2017 and 2022. Purposive sampling was used to select the sample that met particular requirements. In this research, the data was examined using multiple linear regression tests. According to the findings of this research, CSR (corporate social responsibility), CG (corporate governance), and size of the firm are all having significant positive impacts on financial performance. Because of the importance of CSR (Corporate Social Responsibility) and GCG (Good Corporate Governance) in firms for the future, investors should pay attention to components of CSR (Corporate Social Responsibility) and GCG (Good Corporate Governance) in financial reports, which can be utilized as a consideration in investing

CSR, Good Corporate Governance, Corporate Value: Moderation of Financial Performance

“…Financial performance, corporate social responsibility, and good corporate governance are all elements that influence the growth and decrease of a corporate's value. The magnitude of the corporation's financial performance demonstrates its ability to use capital effectively and efficiently [4], [5]. Investors may want to look at how the company handles its own money to generate net income [6].…”

Pengaruh Leverage, Likuiditas, Ukuran Perusahaan, Profitabilitas Dan Agresivitas Pajak Terhadap Pengungkapan Tanggung Jawab Sosial Pada Perusahaan Non Keuangan

“…Hasil penelitian terdahulu menunjukkan bahwa agresivitas pajak berpengaruh signifikan terhadap pengungkapan tanggung jawab sosial (Arfiyanto & Ardiyanto, 2017). Sedangkan penelitian lainnya menyatakan bahwa agresivitas pajak tidak berpengaruh terhadap pengungkapan tanggung jawab social (Fajariati, 2021) (Wati D. N., 2019). Pengungkapan CSR ini merupakan sebuah sinyal positif yang diberikan oleh perusahaan kepada pihak luar perusahaan yang nantinya akan direspon oleh stakeholder dan shareholder melalui perubahan harga saham perusahaan dan perubahan laba perusahaan.…”

“…Aset adalah barang yang memiliki nilai ekonomi, yang dikembangkan dari waktu ke waktu untuk menghasilkan manfaat bagi perusahaan. Ukuran perusahaan menggambarkan besar kecilnya suatu perusahaan yang dapat dinyatakan dengan total aset ataupun penjualan bersih (Wati D. N., 2019). Ukuran perusahaan yang diukur dengan jumlah asset yang dimiliki.…”