CORPORATE SOCIAL RESPONSIBILITY, ECONOMIC VALUE ADDED, ENTERPRISE RISK MANAGEMENT, AND FINANCIAL PERFORMANCE: INTELLECTUAL CAPITAL MODERATION

Enni Savitri

Abstract


Financial performance is required to evaluate possible economic resource changes and forecast the existing resources’ production potential. This study examines how intellectual capital acts as a buffer between the effects of corporate social responsibility, economic value-added, and pricing risk management on financial performance. The 52 manufacturing enterprises that were listed on the Indonesia Stock Exchange between 2016 and 2020 made up the study’s population. Purposive sampling was utilized during sampling. Manufacturing businesses in the consumer goods sector that consistently disclose an exhaustive annual report meet the sample criteria. Based on these standards, 39 businesses were selected for the sample. The method of data processing employs moderate regression analysis (MRA). The findings demonstrated that enterprise risk management, economic value-added, and corporate social responsibility impacted financial performance. The impact of corporate social responsibility on financial performance is strengthened by intellectual capital. The influence of economic value addition and the impact of enterprise risk management on financial performance is strengthened by intellectual capital. The innovative aspect of this study is the non-monetary IC index, which measures intellectual capital.


Keywords


Corporate Social Responsibility, Economic Value-added, Enterprise Risk Management, Intellectual Capital, Financial Performance

Full Text:

PDF

References


Afroz, L., Rana, T., Akter, M., and Hoque, M. 2018. Impact of Intellectual Capital on Financial Performance: Evidence from the Bangladeshi Textile Sector. Journal of Accounting and Organizational Change, 14(4), pp. 429–454. DOI: https://doi.org/ 10.1108/JAOC-11-2017-0109.

Barauskaite, G. and Streimikiene, D. 2021. Corporate Social Responsibility and Financial Performance of Companies: The Puzzle of Concepts, Definitions, and Assessment Methods. Corporate Social Responsibility and Environmental Management, 28(1), pp. 278–287. DOI: https://doi.org/10.1002/csr.2048.

Chen, L., Feldmann, A., and Tang, O. 2015. The Relationship between Disclosures of Corporate Social Performance and Financial Performance: Evidences from GRI Reports in Manufacturing Industry. International Journal of Production Economics, 170, pp. 445–456. DOI: https://doi.org/10.1016/j.ijpe. 2015.04.004.

Dženopoljac, V., Janosevic, S., and Bontis, N. 2016. Intellectual Capital and Financial Performance in the Serbian ICT Industry. Journal of Intellectual Capital, 17(2), pp. 373–396. DOI: https://doi.org/ 10.1108/ JIC-07-2015-0068.

Elmghaamez, I. K., Jesuleke, I., and Olarewaju. 2022. Corporate Social Responsibility and Financial Performance of Product and Service Based Firms Listed on London Stock Exchange. Corporate Social Responsibility and Environmental Management, 29(5), pp. 1370-1383. DOI: https://doi.org/10.1002/csr.2275.

Florio, C. and Leoni, G. 2017. Enterprise Risk Management and Firm Performance: The Italian Case. British Accounting Review, 49(1), pp. 56-74. DOI: https://doi.org/10.1016/j.bar.2016.08.003.

Fourati, Y. M. and Dammak, M. 2021. Corporate Social Responsibility and Financial Performance: International Evidence of the Mediating Role of Reputation. Corporate Social Responsibility and Environmental Management, 28(6), pp. 1749-1759. DOI: https://doi.org/10.1002/csr.2143.

Galant, A. and Cadez, S. 2017. Corporate Social Responsibility and Financial Performance Relationship: A Review of Measurement Approaches. Economic Research-Ekonomska Istrazivanja. 30(1), pp. 676– 693. DOI: https://doi.org/10.1080/1331677X.2017.1313122.

Gassing, S. 2016. Public Relation. First Edition. Yogyakarta. Andi Offset.

Hasan, A. and Harahap, S. S. 2010. Exploring Corporate Social Responsibility Disclosure: Case of Islamic Banks. International Journal of Islamic and Middle Eastern Finance and Management. 3(3), pp. 203-227.

Hoyt, R. E. and Liebenberg. 2011. The Value of Enterprise Risk Management. Journal of Risk and Insurance, 78(4), pp. 795-822. DOI: https://doi.org/ 10.1111/j.15396975.2011.01413.

Ismail, I. 2011. The Ability of EVA (Economic Value Added) Attributes in Predicting Company Performance. African Journal of Business Management. 5(12), pp. 4993-5000.

Kamatra, N. and Kartikaningdyah, E. 2015. Effect Corporate Social Responsibility on Financial Performance. International Journal of Economics and Financial Issues, 5, pp. 157–64.

Kasmir. 2015. Analisis Laporan Keuangan. Edisi Satu. Jakarta: PT Raja Grafindo Persada.

Kurfi, S. A., Udin, M. N., and Bahamman, S. 2017. The Impact of Intellectual Capital on the Financial Performance of Listed Nigerian Food Products Companies. Journal of Accounting and Taxation, 9(11), pp. 147–60. DOI: https://doi.org/10.5897/jat2017.0246.

Madorran, C. and Garcia, T. 2016. Corporate Social Responsibility and Financial Performance: The Spanish Case. RAE Revista de Administracao de Empresas, 56(1), pp. 20–28. DOI: https://doi.org/ 10.1590/S0034-759020160103.

Mahrani, M. and Soewarno, N. 2018. The Effect of Good Corporate Governance Mechanism and Corporate Social Responsibility on Financial Performance with Earnings Management as Mediating Variable. Asian Journal of Accounting Research, 3(1), pp. 41– 60. DOI: https://doi.org/ 10.1108/AJAR-06-20180008.

Mardiyanto. 2013. Pengantar Manajemen Keuangan. Jakarta: Rajawali Press.

McShane, M. K., Nair, A., and Rustambekov, E. 2011. Does Enterprise Risk Management Increase Firm Value?. Journal of Accounting, Auditing, and Finance, 26(4), pp. 641-658.

Nollet, J., Fillis, G., and Mitrokostas, E. 2016. Corporate Social Responsibility and Financial Performance: A Non-Linear and Disaggregated Approach. Economic Modelling, 52, pp. 400–407. DOI: https:// doi.org/10.1016/j.econmod.2015.09.019.

Opazo, C. A. and González, O. C. 2021. The Impacts of Intellectual Capital on Financial Performance and Value-Added of the Production Evidence from Chile. Journal of Economics, Finance and Administrative Science, 26(51), pp. 1-16. DOI: https://doi.org/ 10.1108/JEFAS-08-2019-0178.

Ping, T. A. and Muthuveloo, R. 2015. The Impact of Enterprise Risk Management on Firm Performance: Evidence from Malaysia. Asian Social Science, 11(22), pp. 149–159.

Rudianto. 2013. Akuntansi Manajemen Informasi untuk Pengambilan Keputusan Strategis. Jakarta: Erlangga.

Sakti, Y. S. 2017. The Effect of CSR Disclosure on the Financial Performance of Mining Sector Companies Listed to Indonesia Stock Exchange Period 2012-2015. Jurnal Akuntansi dan Teknologi Informasi (JATI), 11(1), pp. 1-16. DOI: https://doi.org/10.24123/jati.v11i1.270.

Sardo, F., Serrasqueiro, Z., and Alves, H. 2017. On the Relationship between Intellectual Capital and Financial Performance: A Panel Data Analysis on SME Hotels. International Journal of Hospitality Management, 75, pp. 67–74. DOI: https://doi.org/10.1016/j.ijhm.2018.03.001.

Savitri, E., Gumanti, T. A., and Yulinda, N. 2020. Enterprise Risk-Based Management Disclosures and Firm Value of Indonesian Finance Companies. Problems and Perspectives in Management, 18(4), pp. 414-422. DOI: https://doi.org/10.21511/ppm.18(4).2020.33.

Sawir, A. 2015. Analisis Kinerja Keuangan dan Perencanaan Keuangan Perusahaan. Jakarta: Gramedia Pustaka Utama.

Shad, M. K., Lai, F. W., Fatt, C. L., Klemeš, J. J., and Bokhari, A. 2019. Integrating Sustainability Reporting into Enterprise Risk Management and Its Relationship with Business Performance: A Conceptual Framework. Journal of Cleaner Production, 208, pp. 415–425.

Sorin, G. A. 2018. The Impact of Enterprise Risk Management on Firm Value: Empirical Evidence from Romanian Non-Financial Firms. Inzinerine Ekonomika-EngineeringEconomics, 29(2), pp. 151157. DOI: https://doi.org/10.5755/j01.ee.29.2.16426.

Sunardi, N. 2020. Economic Value Added (EVA) dan Market Value Added (MVA) dengan Time Series Approach pada Industri Semen di Indonesia. Jurnal Ilmiah Manajemen Forkamma 3(2), pp. 184–94. DOI: https://doi.org/10.31092/jpkn.v2i1.999.

Ulum, I., Ghozali, I., and Chariri, A. 2008. Intellectual Capital dan Kinerja Keuangan: Suatu Analisis dengan Pendekatan Partial Least Squares (PLS). Simposium Nasional Akuntansi 11 (SNA 11). Universitas Tanjung Pora Pontianak.

Wu, Y., Marshall, A., Chipulu, M., Li, Q., and Ojiako, U. 2014. Enterprise Risk Management and Firm Value within China’s Insurance Industry. Professional Accountant, 14(1), pp. 1-10.

Xu, J. and Liu, F. 2021. Nexus between Intellectual Capital and Financial Performance: An Investigation of Chinese Manufacturing Industry. Journal of Business Economics and Management, Volume 22, Number 1, pp. 217–235. DOI: https://doi.org/10.3846/ jbem.2020.13888.

Yudho, W. 2019. Ini Penyebab Anjloknya Kinerja Indeks Sektor Manufaktur Sejak Awal Tahun. Minggu, 22 Desember 2019 / 17:46 WIB. Available at https:// in vestasi.kon tan .co.id/news/in i-pen yebabanjloknya-kinerja-indeks-sektor-manufaktur-sejakawal-tahun.




DOI: http://dx.doi.org/10.21776/ub.jam.2022.020.04.10

Refbacks

  • There are currently no refbacks.