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September 5, 2025Review of Applied Accounting Research (RAAR)0 citations

Corporate Governance (Cg), Corporate Social Responsibility (Csr) and Financial Performance: Evidence From Manufacturing Companies in Indonesia

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MMMarheni MarheniBSBambang Sutopo

Key Points

  • Financial performance is positively influenced by independent directors, audit committees, and CSR.
  • The study utilized data from 51 manufacturing companies listed on the Indonesia Stock Exchange.
  • A purposive sampling strategy was employed to collect secondary data from annual reports.
  • Enhancing financial performance can lead to improved outcomes for shareholders and business sustainability.

Abstract

This study aim to determine whether there is a correlation between the financial performance of manufacturing companies listed on the IDX and the following factors: CSR, the Audit Committee, the Board of Directors, and the Independent Board of Commissioners. Quantitative research methodology was used in this investigation. Purposive sampling strategies are used in this research to determine the samples. The data used in this research is 51. The yearly reports of businesses listed on the Indonesia Stock Exchange (IDX) provide this kind of secondary data. It was determined that the company's financial performance was positively impacted by the independent directors, audit committee, board of commissioners, and CSR. The findings indicate that enhancing financial performance will lead to a better situation for the owners or shareholders. Corporate social responsibility (CSR) and good corporate governance (CG) are complementary yet equally important for companies to thrive. The implication of this research for companies is that it can be used to evaluate how each business component contributes to the overall process of achieving goals and to determine how much money should be invested to increase the company's production capacity. As a basis for decision making for business sustainability. This research explores the influence of Corporate Governance, Corporate Social Responsibility on Financial Performance and this research is still rare so research needs to be carried out.

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Cite This Study

Marheni et al. (2025) studied this question.

synapsesocial.com/papers/68bb42142b87ece8dc95832ahttps://doi.org/10.30595/raar.v5i1.25929
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