IDEAS home Printed from https://ideas.repec.org/a/tec/sustai/v1y2021i2p34-44.html
   My bibliography  Save this article

The Implementation of CSR and GCG in Improving Financial Performance

Author

Listed:
  • Yeni Ariesa

    (Fakultas Ekonomi Universitas Prima Indonesia Medan, Indonesia)

  • Johnny Fernando

    (Fakultas Ekonomi Universitas Prima Indonesia Medan, Indonesia)

  • Melvira Melvira

    (Fakultas Ekonomi Universitas Prima Indonesia Medan, Indonesia)

  • Frandika Putra Lie

    (Fakultas Ekonomi Universitas Prima Indonesia Medan, Indonesia)

  • Lusiana Sembiring

    (Fakultas Ekonomi Universitas Prima Indonesia Medan, Indonesia)

Abstract

The aim of this research is to examine the implementation of CSR and GCG in improving financial performance in the consumer goods industry sector in 2015-2019. The research method approach uses deductive, quantitative types and descriptive properties. The number of consumer goods industrial sector companies listed on the Indonesia Stock Exchange (IDX) are 53 companies and the sample that meets the criteria according to purposive sampling is 12 companies. Data analysis used SEM with PLS approach model. PLS analysis was carried out with SmartPLS 3.0 software. The conclusion from the results indicate (CSR) has a negative effect while (GCG) shows a positive direction and have a significant impact on (ROE). The magnitude of this factor is 14%, through the adjusted R2 value, while the 86% could be explained as from other unexamined variables.

Suggested Citation

  • Yeni Ariesa & Johnny Fernando & Melvira Melvira & Frandika Putra Lie & Lusiana Sembiring, 2021. "The Implementation of CSR and GCG in Improving Financial Performance," Technium Sustainability, Technium Science, vol. 1(2), pages 34-44, July.
    • Handle: RePEc:tec:sustai:v:1:y:2021:i:2:p:34-44
    as

    Download full text from publisher

    File URL: https://techniumscience.com/index.php/sustainability/article/view/5221/1814
    Download Restriction: no
    File URL: https://techniumscience.com/index.php/sustainability/article/view/5221
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oh, Frederick Dongchuhl & Shin, Sean Seunghun, 2020. "Does product market competition affect corporate governance? Evidence from corporate takeovers," Journal of Empirical Finance, Elsevier, vol. 59(C), pages 68-87.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abbas, Jaffar & Balsalobre-Lorente, Daniel & Amjid, Muhammad Asif & Al-Sulaiti, Khalid & Al-Sulaiti, Ibrahim & Aldereai, Osama, 2024. "Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance," Innovation and Green Development, Elsevier, vol. 3(1).
    2. Lee, Kyounghun & Oh, Frederick Dongchuhl, 2022. "Mandatory disclosure, investment, and private benefits of control," Economics Letters, Elsevier, vol. 216(C).
    3. Chen Chun-Hung & Chen Kuan-Wei & Chen Yu-Fan & Lin Chia-Yin, 2024. "The New Form Agency Problem: Cooperation and Circular Agency," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 97-116, January.
    4. Long Miao & Yue Zhuo & Haojun Wang & Bei Lyu, 2022. "Non-Financial Enterprise Financialization, Product Market Competition, and Total Factor Productivity of Enterprises," SAGE Open, , vol. 12(2), pages 21582440221, May.

    More about this item

    Keywords

    Corporate Social Responsibility; Good Corporate Governance; Return on Equity.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tec:sustai:v:1:y:2021:i:2:p:34-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tasente Tanase (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.