Email this article Integrated Corporate Governance Moderates Determinants On Economic Performance
Abstract
Objectives: This study aims to examine the effect of corporate social responsibility and competitive advantage on economic performance in addition to using integrated corporate governance as a moderating variable. Thus, this study also aims to determine whether integrated corporate governance strengthens or weakens the relationship.
Methodology: The research method used is moderated regression analysis (MRA). Data used in this research is secondary data from IDX. In addition, this study tested the classical assumptions and tested the accuracy of the model to find out which model was the most appropriate. The number of samples used in this study was 201 samples from the annual year 2020-2022.
Finding: The results show that CSR does not affect economic performance, competitive advantage has a positive effect on economic performance, CG strengthens the influence of CSR on economic performance and CG strengthens the influence of competitive advantage on economic performance.
Conclusion: Governance is an important factor in company performance because it can moderate the relationship between competitive advantage and CSR with performance. This research indicates the importance of competitive advantage to improve company performance. This is supported by the RBV theory which states to make good use of company resources. Also, governance could become quasi-moderation because it could become a moderator variable and could influence an independent variable.
Novelty: This research uses different measurements of integrated corporate governance measurement. ICG measurement in this research is using developed POJK no 2/POJK 05/2014 indicators.
Keywords
Full Text:
PDFReferences
Agustina, L., & Murwaningsari, E. (n.d.). The Influence of Corporate Social Responsibility (CSR) and Cost of Debt on Corporate Financial Performance during the Covid-19 Pandemic with Political Connections as a Moderating Variable. Accounting Research Journal of Sutaatmadja (ACCRUALS, 15–30. https://doi.org/10.35310/accruals.v6i01.903
Agustina, L., & Murwaningsari, E. (2022). The Influence of Corporate Social Responsibility (CSR) and Cost of Debt on Corporate Financial Performance during the Covid-19 Pandemic with Political …. ACCRUALS, 06, 15–30. http://www.ojs.stiesa.ac.id/index.php/accruals/article/view/903%0Ahttp://www.ojs.stiesa.ac.id/index.php/accruals/article/download/903/327
Ahmar, N., & Astuti, T. (2023). COMPETITIVE ADVANTAGE BASED ON GREEN INTELLECTUAL CAPITAL AND GREEN INNOVATION. In Asian Journal of Engineering, Social and Health (Vol. 2, Issue 11). https://ajesh.ph/index.php/gp
Alzate-Gómez, J. D., Cortés, D. L., & Fieldman, P. M. (2020). Corporate Social Responsibility Practices and Economic Performance in Colombia: the Moderating Effect of Family Control. International Journal of Economics and Financial Issues, 10(1), 6–18. https://doi.org/10.32479/ijefi.8856
Amrie Firmansyah, N. D. (2021). Peran Tata Kelola Perusahaan Dalam Kinerja Operasional dan Kinerja Pasar Di Indonesia. Jurnal Ekonomi, 26(2), 196. https://doi.org/10.24912/je.v26i2.746
Andnyani, N. P. S., Endiana, I. D. M., & Arizona, P. E. (2020). Pengaruh Penerapan Good Corporate Governance dan Corporate Social Responsibility terhadap Kinerja Perusahaan. Kharisma, 2(2), 228–249.
Ardi, S., & Murwaningsari, E. (2018). Financial performance determination, earnings quality, intellectual capital, and company value. South East Asia Journal of Contemporary Business, Economics and Law, 15(5), 1–16.
Arief, H., Saratian, E. T. P., Oktaviar, C., Marlapa, E., & Soelton, M. (2024). The Influence of Sales Growth, Profitability, Liquidity and Firm Size Towards Financial Distress. Formosa Journal of Sustainable Research, 3(8), 1923–1934.
Awaysheh, A., Heron, R. A., Perry, T., & Wilson, J. I. (2020). On the relation between corporate social responsibility and financial performance. Strategic Management Journal, 41(6), 965–987. https://doi.org/10.1002/smj.3122
Barney, J., & Clark, D. (2023). Resource-Based Theory: Creating and Sustaining Competitive Advantage. https://doi.org/10.1093/oso/9780199277681.001.0001
Boachie, C. (2023). Corporate governance and financial performance of banks in Ghana: the moderating role of ownership structure. International Journal of Emerging Markets, 18(3), 607–632. https://doi.org/10.1108/IJOEM-09-2020-1146
Butsalee, P. (2021). THE INFLUENCE OF INTELLECTUAL CAPITAL EFFICIENCY AFFECTING CORPORATE GOVERNANCE COMPETITIVE ADVANTAGE AND PERFORMANCE OF THE LISTED COMPANIES OF THE STOCK EXCHANGE OF THAILAND. International Journal of Entrepreneurship, 25(1).
Cek, K., & Eyupoglu, S. (2020). Does environmental, social and governance performance influence economic performance? Journal of Business Economics and Management, 21(4), 1165–1184. https://doi.org/10.3846/jbem.2020.12725
Christian, O. S. (2020). Competitive advantage and organisational performance in selected firms. International Research Journal of Management, IT and …, 7(5), 1–12. https://core.ac.uk/download/pdf/328143507.pdf
Correia, R. J., Dias, J. G., & Teixeira, M. S. (2020). Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance. Journal of Strategy and Management, 14(2), 187–206. https://doi.org/10.1108/JSMA-12-2019-0223
Damayanty, P., & Murwaningsari, E. (2020). The Role Analysis of Accrual Management on Loss-Loan Provision Factor and Fair Value Accounting to Earnings Volatility. Research Journal of Finance and Accounting, 11(2), 155–162.
Eksandy, A., Murtanto, & Regina J. Arsjah. (2021). Green Competitive Advantage Moderate:Environmental Performance, Corporate Image And Corporate Social Performance On Economic Performance. International Journal of Science, Technology & Management, 2(5), 1468–1478. https://doi.org/10.46729/ijstm.v2i5.323
El-Mallah, R. K. E.-D., Aref, A. A. el H., & Sherif, S. (2019). The role of social responsibility in protecting the environment – a case of the petrochemical companies in Alexandria Governorate. Review of Economics and Political Science. https://doi.org/10.1108/reps-04-2019-0052
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93. https://doi.org/10.1016/j.technovation.2018.11.004
Gartner, W. B. (2022). No Title. The Academy of Management Review, 10(4), 873–875. https://doi.org/10.2307/258056
Gionchetti, E. (2021). Accounting and Finance Final Thesis “ Twitter , social corporate responsibility and economic performance : how multinational companies exploit social media ” Supervisor. 863533, 1–127.
Hamid, K. T., & Ibrahim, M. (2020). THE MODERATING EFFECT OF CORPORATE GOVERNANCE ON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL SERVICES COMPANIES IN NIGERIA. International Journal of Accounting and FInance (IJAF), 9(1), 71–91.
Husna, A., & Satria, I. (2019). Effects of return on asset, debt to asset ratio, current ratio, firm size, and dividend payout ratio on firm value. International Journal of Economics and Financial Issues, 9(5), 50–54.
Jeong, S. W., & Chung, J.-E. (2022). Enhancing competitive advantage and financial performance of consumer-goods SMEs in export markets: how do social capital and marketing innovation matter? Asia Pacific Journal of Marketing and Logistics, 34(3). https://doi.org/10.1108/APJML-05-2021-0301
Kamela, H., & Alam, R. S. (2021). THE INFLUENCE OF VOLUNTARY GLOBAL REPORTING INITIATIVE (GRI) ON THE PERFORMANCE OF INDONESIA LISTED COMPANIES. Jurnal Akuntansi, 11(1), 16–22. https://doi.org/10.33369/j.akuntansi.11.1.16-22
Karim, S., Manab, N. A., & Ismail, R. B. (2023). Assessing the Governance Mechanisms, Corporate Social Responsibility and Performance: The Moderating Effect of Board Independence. Global Business Review, 24(3), 550–562. https://doi.org/10.1177/0972150920917773
Kazemian, S., Djajadikerta, H. G., Trireksani, T., Mohd-Sanusi, Z., & Alam, M. M. (2022). Corporate governance and business performance of hotels in Western Australia: analysis of market orientation as a mediator. Business Process Management Journal, 28(3), 585–605. https://doi.org/10.1108/BPMJ-05-2021-0335
Khotimah, K., & Harahap, M. N. (2024). ANALISIS STRUKTUR MODAL DAN RASIO HUTANG TERHADAP KINERJA KEUANGAN DENGAN UKURAN PERUSAHAAN SEBAGAI VARIABEL MODERASI. 18(1). https://doi.org/10.19184/jpe.v18i1.46786
Kijkasiwat, P., & Phuensane, P. (2020). Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance. Journal of Risk and Financial Management, 13(5). https://doi.org/10.3390/jrfm13050097
Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1). https://doi.org/10.1186/s13731-020-00123-7
Krisdamayanti, D. C., & Retnani, E. D. (2020). Pengaruh Csr, Ukuran Perusahaan Dan Leverage Terhadap Kinerja Keuangan Perusahaan. Jurnal Ilmu Dan Riset Akuntansi (JIRA), 9(4).
Laurens, S., & Murwaningsari, E. (n.d.). A new decade for social changes Capital and sustainability on performance: The Mediating Effect of Governance. Www.Techniumscience.Com, 25, 2021. www.techniumscience.com
Lu, J., & Wang, J. (2021). Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective. Journal of International Financial Markets, Institutions and Money, 70. https://doi.org/10.1016/j.intfin.2020.101264
Ludwig, P., & Sassen, R. (2022). Which internal corporate governance mechanisms drive corporate sustainability? Journal of Environmental Management, 301. https://doi.org/10.1016/j.jenvman.2021.113780
Maldonado-Erazo, C. P., Álvarez-García, J., del Río-Rama, M. de la C., & Correa-Quezada, R. (2020). Corporate social responsibility and performance in SMEs: Scientific coverage. Sustainability (Switzerland), 12(6). https://doi.org/10.3390/su12062332
Marpaung, E. I., & Augustine, Y. (n.d.). A new decade for social changes The moderating effect of corporate governance to the relationship of corporate social responsibility and product market competition to company value. Www.Techniumscience.Com, 24, 2021. www.techniumscience.com
Maula, I., & Jaya, T. J. (2022). Effect of Earning Asset Quality, Financial Leverage, and Company Size on Financial Performance of Sharia Commercial Banks. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 7(2).
Mohammad, W. M. W., & Wasiuzzaman, S. (2021). Environmental, Social and Governance (ESG) disclosure, competitive advantage and performance of firms in Malaysia. Cleaner Environmental Systems, 2(January), 100015. https://doi.org/10.1016/j.cesys.2021.100015
Nasrallah, N., & El Khoury, R. (2022). Is corporate governance a good predictor of SMEs financial performance? Evidence from developing countries (the case of Lebanon). Journal of Sustainable Finance and Investment, 12(1), 13–43. https://doi.org/10.1080/20430795.2021.1874213
Ortiz-Martínez, E., Marín-Hernández, S., & Santos-Jaén, J. M. (2023). Sustainability, corporate social responsibility, non-financial reporting and company performance: Relationships and mediating effects in Spanish small and medium sized enterprises. In Sustainable Production and Consumption (Vol. 35, pp. 349–364). Elsevier B.V. https://doi.org/10.1016/j.spc.2022.11.015
Ponto, S., & Santoso, E. B. (2020). THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY AND INTELLECTUALCAPITAL DISCLOSURE ON FINANCIAL PERFORMANCE OF FINANCIAL INDUSTRY COMPANIES IN MALAYSIA AND INDONESIA. Journal of Accounting, Entrepreneurship, and Financial Technology, 01(02).
Qintharah, Y. N., & Bagaskara, D. N. (2021). The Influence of Intelectual Capital and Audit Committee on Financial Performance on Banking Companies. International Humanities and Applied Sciences Journal (IHASJ), 4(02), 81. https://doi.org/10.47312/aar.v3i02.193
Rachmawati, S. (2019). Company Size Moderates the Effect of Real Earning Management and Accrual Earning Management on Value Relevance. ETIKONOMI, 18(1). https://doi.org/10.15408/etk.v18i1.9381
Rifan, D. F., & Qintharah, Y. N. (2021). Pengaruh Kualitas Audit dan BOPO terhadap Profitabilitas Bank Umum Syariah Periode 2012-2018. Jurnal Riset Akuntansi Dan Komputerisasi Akuntanis, 12(2), 55–68.
Shabilah, R., Fauzi, A., & Muliasari, I. (2023). THE INFLUENCE OF ISLAMIC CORPORATE GOVERNANCE (ICG), COMPANY SIZE, AND LEVERAGE (DAR) ON FINANCIAL PERFORMANCE (ROA) IN SHARIA PEOPLE’S FINANCING BANKS IN INDONESIA. CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE, 2(4), 575–589.
Singh, K., & Misra, M. (2021). Linking Corporate Social Responsibility (CSR) and Organizational Performance: the moderating effect of corporate reputation. European Research on Management and Business Economics, 27(1). https://doi.org/10.1016/j.iedeen.2020.100139
Soelton, M., Ramli, Y., Anggraini, D., & Khosasi, D. (2020). Implementing Good Corporate Governance to Engage Corporate Social Rerponsibility in Financial Performance. In European Research Studies Journal: Vol. XXIII (Issue 1).
Summual, T. E. M., Kawulur, A. F., & Kawulur, H. R. (2019). Competitive advantage and culinary business performance: An antecedent of human capital and entrepreneur competence. Int. J. Recent Technol. Eng, 8, 1–8.
Suryati, A., Murwaningsari, E., & Mayangsari, S. (2022). EFFECT OF DISCLOSURE OF INTELLECTUAL CAPITAL AND PROFIT VOLATILITY ON COMPETITIVE ADVANTAGE WITH INTERVENING NET PROFIT MARGIN VARIABLES. 11(01), 72–82.
Tommaso, F. D., & Gulinelli, A. (2019). Corporate Governance and Economic Performance: The Limit of Short Termism. Financial Markets, Institutions and Risks, 3(4), 49–61. https://doi.org/10.21272/fmir.3(4).49-61.2019
Udriyah, Tham, J., & Ferdous Azam, S. M. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile smes. Management Science Letters, 9(9), 1419–1428. https://doi.org/10.5267/j.msl.2019.5.009
Wijaya, B. A., & Nuryatno, M. (2019). Pengaruh Environmental Performance Dan Environmental Disclosure Terhadap Economic Performance. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 9(2), 141. https://doi.org/10.25105/jipak.v9i2.4530
Wu, L., Shao, Z., Yang, C., Ding, T., & Zhang, W. (2020). The impact of CSR and financial distress on financial performance-evidence from chinese listed companies of the manufacturing industry. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176799
/SU12176799
DOI: http://dx.doi.org/10.22441/jurnal_mix.2024.v14i3.009
Refbacks
- There are currently no refbacks.
MIX: Jurnal Ilmiah Manajemen
Journal URL: http://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix
Journal DOI: 10.22441/jurnal_mix
P-ISSN: 2088-1231
E-ISSN: 2460-5328
Editor's Address:
Magister Management Department, Universitas Mercu Buana.
Tedja Buana Building 4th Floor.
Jl. Menteng Raya No. 29, Jakarta 10340.
The Journal is Indexed and Abstracting by:
1.png){kind=logo}