EXPLORING THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY, LEVERAGE, AND INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE (EMPIRICAL EVIDENCE FROM BANKING SECTOR COMPANIES PERIOD 2015-2019)
Open Access
- 5 June 2021
- journal article
- Published by Maya Global Education Society in International Journal of Management, Innovation & Entrepreneurial Research
- Vol. 7 (1), 01-11
- https://doi.org/10.18510/ijmier.2021.711
Abstract
Purpose of the Study: This study aims to analyze the effect of independent variables such as corporate social responsibility, leverage, and intellectual capital on dependent variables such as financial performance in banking sector companies indexed on the Indonesia Stock Exchange in 2015-2019. Methodology: This review is adopted the descriptive statistics approach. While the hypothesis test using multiple linear regression analysis and simultaneous significance analysis. Secondary data collected through the purposive sampling method consisted of 85 samples from 17 companies. Main Findings: The results indicate that CSR has a positive effect on FP. While LEV and IC have no effect on FP. Debt withdrawal will not have an impact on the company's sustainability in increasing profits. In addition, the company also has a concern for the disclosure of CSR activities through the GRI, which can increase the company's profit. Implication/Applications: The results of this study can be used for financial practitioners, especially in the banking industry, to determine the effect of corporate social responsibility, leverage, and intellectual capital on financial performance. Therefore, banking companies can make decisions based on the priority scale on the most influential variables. In addition, this research can also be a reference for academics and researchers who are interested in the issue of financial performance. The originality of the study: The results of this study are the latest studies that systematically and comprehensively discuss the financial performance of the banking sector based on several important factors.Keywords
This publication has 33 references indexed in Scilit:
- On the relation between corporate social responsibility and financial performanceStrategic Management Journal, 2020
- The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadershipCorporate Social Responsibility and Environmental Management, 2019
- Intellectual capital efficiency and organisational performanceJournal of Intellectual Capital, 2019
- Does leverage affect the financial performance of Nigerian firms?Journal of Economics and Management, 2019
- ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT MAYORA INDAH TBK TANGERANGJurnal SEKURITAS (Saham, Ekonomi, Keuangan dan Investasi), 2018
- The intellectual capital of business incubatorsJournal of Intellectual Capital, 2014
- Intellectual Capital and Financial Performance in SerbiaKnowledge and Process Management, 2013
- Corporate social responsibility and corporate financial performance in China: an empirical research from Chinese firmsCorporate Governance: The international journal of business in society, 2011
- Is accounting for sustainability actually accounting for sustainability…and how would we know? An exploration of narratives of organisations and the planetAccounting, Organizations and Society, 2010
- Linking intellectual capital and intellectual property to company performanceManagement Decision, 2005