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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
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    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)

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    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

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