THE INFLUENCE OF BUSINESS ETHICS, ORGANIZATIONAL
GOVERNANCE, AND CORPORATE SOCIAL RESPONSIBILITY ON THE FINANCIAL PERFORMANCE OF
COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE
Stephanie1,
Werner Ria Murhadi2*
Universitas Surabaya,
Indonesia
Email: s134119005@student.ubaya.ac.id1, werner@staff.ubaya.ac.id2*
Abstract
Sustainability
issue nowadays requires companies in Indonesia to act strategically and not only
focus on financial performance, but also social and environmental aspects.
Corporate social responsibility is seen as an obligate and one way to comply
with the business ethics value as generally required by society. However, the
differences in the company’s stakeholders’ needs could cause variation of
corporate governance system, which sometimes does not follow the ethics value.
This research aims to look over the effect of ethics (generally) to corporate
governance practices and implementation of corporate social responsibility in
Indonesia, also towards the company’s financial performance. The sample of this
research is the companies listed in the IDX80 index of Bursa Efek Indonesia.
The data collection technique used is the purposive sampling method and data
collected will be analyzed using linear regression method. This research proved
that ethics affecting the corporate governance system and corporate social responsibility
practices, but there’s no prove that corporate governance system and corporate
social responsibility affect the corporate financial performance.
Keywords: Sustainability,
business ethics, corporate governance, social responsibility, financial
performance.
INTRODUCTION
As the only member of the G-20 in the Southeast Asian, Indonesia
is predicted to play a more important role in the future (Ridho,
2018). Increasing public perceptions and
expectations of Indonesia's economic development require companies to act
strategically for its sustainability (Menne
et al., 2022). Companies are expected to consider
aspect such as Corporate Governance (GC) and Corporate Social Responsibilities
(CSR) while deciding its strategic decisions in order to sustain in this VUCA world.
(ElGammal,
El-Kassar, & Messarra, 2018) argues that business is considered
ethical if the business has a balance in terms of pursuing profit and also
fulfilling its social responsibilities, even though the morals and standards of
each company can vary because they are influenced by the culture or location. (Mahrani
& Soewarno, 2018) did a research
which aimed to determine the relationship between the independent variables CG
and CSR on the dependent variable FP through the intermediary variable earning
management (EM) or income management which data used comes from secondary data
of 102 companies that have been listed on the Indonesia Stock Exchange during
the 2014 period. The result showed that EM is a full intermediary between CSR
and FP. To see the implementation of CSR and its impact on FP and Non-FP
factors for companies in Indonesia in particular, (Ridho,
2018) in his research in 2014-2015 stated
that the implementation of CSR carried out by companies in Indonesia is still
relatively low. Strategic decisions made by a company that are oriented towards
sustainability issues will make the company more balanced in meeting the needs
and desires of its stakeholders (Liao,
Luo, & Tang, 2015). Many experts believe that the
implementation of good corporate governance and corporate social responsibility
can improve the company's financial performance in the long term (Jizi,
Salama, Dixon, & Stratling, 2014). The ethical style held by the company
is also believed to influence the decisions taken regarding aspects of corporate
governance and corporate social responsibility (Parker,
2014).
RESEARCH METHODS
The research paradigm used is positivism, a paradigm that
believes that true (positive) knowledge is knowledge based on the facts of observation
obtained through scientific investigation/research (Nelson,
2014). This research is basic research
with the objective of causal explanatory study, or in other words research that
examines the causal relationship between certain phenomena between variables
based on pre-existing theory and knowledge. In this study, the ethics variable
acts as an independent variable on the dependent variable corporate governance
and the dependent variable corporate social responsibility. Meanwhile, the
corporate governance and corporate social responsibility variables will each be
tested again as independent variables on the dependent variable financial
performance (Sugiyono,
2017).
Variable: Ethics (E)
The measurement of variable E is carried out by calculating
the number of reference words based on those listed in the Table 1 in the
Company's annual report for 3 years. The more words identified,
it can be said that the related Company has a higher ethical value.
Tabel 1. Reference Words Used for Text Analysis
|
DAFTAR KATA |
|
|
Award / penghargaan |
Moral /
moral |
|
Care / peduli |
Norm / norma |
|
Copyright / hak cipta |
Obligation / kewajiban |
|
Emission / emisi |
Openness / keterbukaan |
|
Emotions / emosi |
Pollution / polusi |
|
Environmental / lingkungan |
Renewable energy
/ energi terbarukan |
|
Ethics / etika |
Respect /
rasa hormat |
|
Ethical / etis |
Rights / hak |
|
Fraud / penggelapan |
Safety / keamanan |
|
Freedom / kebebasan |
Social responsibility
/ tanggung jawab sosial |
|
Religion /
agama |
Social value
/ nilai sosial |
|
Health / kesehatan |
Sustainability / keberlanjutan |
|
Honesty / kejujuran |
Transparency / transparansi |
|
Impartiality / ketidakberpihakkan |
Universality / keuniversalan |
|
Justice / keadilan |
Waste / limbah |
|
Morality / moralitas |
|
Variable: Corporate
Governance (CG)
The CG variable in this study was determined by measuring the
percentage of the number of independent commissioners (IK) from outside the company
compared to the total existing commissioners and the number of audit committees
(denoted by KA) was measured by the total number of audit committees in the
company concerned.
Variable: Corporate
Social Responsibility (CSR)
Citing the results of (Andreas
& Chang, 2021) that media exposure has a positive
impact on disclosure of CSR activities by companies, the CSR variable in this
study will be measured based on media exposure on the google search system
(www.google.com) which is specifically for searching CSR news. The measurement
is based on the number of stories that appear on search engines up to the 5th
search page. The more CSR news that appears on search engines, the higher the level
of CSR execution in the company is said to be. The tally method will be used to
process data which will previously be divided into 5 class categories, which are
denoted by the numbers 1 (one) to 5 (five). The lower the category number means
that the related company has a lower CSR value.
Variable: Financial
Performance (FP)
The financial performance ratio (FP) used in this study is
Return on Equity (ROE) – the company's annual rate of return (net income)
divided by the total value of equity owned by shareholders and written as a
percentage – and Tobin's Q / Q Ratio – Comparison of the proportion of the
total market value of a company with the replacement value of related company
assets.
Data
The data in this study will use secondary data, namely annual
reports of public companies listed on the Indonesia Stock Exchange IDX-80 Index
and also news published in the mass media that are relevant to the discussion
in this study. The type of data collected is in the form of a time series
because it is devoted to a period of 3 years, namely 2019-2021. The types of
data collected are nominal, ordinal, and ratio data. The IDX80 index also
incorporates free float stock adjustments and good fundamentals so that it is
expected to reflect stock price movements more accurately.
Population and Sample
The population studied in this study are public companies
listed on the Indonesia Stock Exchange (IDX), which are based on IDX data in
IDX Announcement No. Peng-00210/BEI.POP/07-2021 dated 26 July 2021. This
research will take a sample of companies listed on the IDX80 index using a
purposive sampling method of data collection, namely a sampling technique that
is limited to predetermined conditions/objectives.
Analysis Tools
The tools used in this research descriptive statistical
analysis are the average value, maximum value and minimum value, according to
the type of data processed in this study (Shahravan,
Ghassemi, & Baneshi, 2013). The relationship between variables
in this study will be tested using the linear regression method, with the test
being carried out between one variable and one other variable separately. Each
test will be carried out based on the hypothesis that was written in Chapter II
of this study, which is divided into 2 parts (Ma,
Shi, & Ji, 2020). Namely, the first part: testing the
effect of the Ethics (E) variable on Corporate Governance (CG) variables and
testing the effect of the Ethics (E) variable on Corporate Social
Responsibility (CSR) variables. Next, the second part: the effect of the
Corporate Governance (CG) variable on the Financial Performance (FP) variable,
and testing the effect of the Corporate Social Responsibility variable on the
Financial Performance (FP) variable.
Statistical Test
Three types of tests were conducted on the data collected in
this study, namely as follows:
1. For the reliability test, the Cronbach's Alpha (α)
method was used, the value will be accepted or in accordance with the
hypothesis if α ≥ 0.6
2. For the linear regression test, with the equation Y =
AX + B, in which the hypothesis will be accepted if the p-value is ≤ 5%.
There are 4 linear regression tests carried out with each variable shown as
follows:
·
Linear
regression test #1: Variable E to CG
Y = dependent variable, namely CG
X = independent variable, namely variable E
Hypothesis H1: Ethics (E) has a positive effect on Corporate
Governance (CG)
·
Linear
regression test #2: Variable E on CSR
Y = dependent variable, namely CSR variable
X = independent variable, namely variable E
Hypothesis H2: Ethics (E) has a positive effect on Corporate
Social Responsibility (CSR)
·
Linear
regression test #3: Variable CG on FP
Y = dependent variable, namely variable FP
X = independent variable, namely variable CG
Hypothesis H3: Corporate Governance (CG) has a positive
effect on Financial
·
Linear
regression test #4: CSR variable on FP
Y = dependent variable, namely FP
X = independent variable, namely CSR variable
Hypothesis H4: Corporate Social Responsibility (CSR) has a
positive effect on Financial Performance (FP)
For the correlation test, to see how the
relationship/influence of each variable to each other (ethics, corporate
governance, corporate social responsibility, financial performance).
RESULTS & DISCUSSION
Variable E data used is the average value of total reference words
identified shown by Table 2. The CG variable data used consists of two indicators,
namely the number of independent commissioners and the number of audit
committee members in a company is presented in Table 3. The number of news reports
used as CSR variable data is shown in Table 4. FP variable data obtained based
on two indicators, namely ROE and Q Ratio which can be seen in Table 5. The
Q-Ratio calculation data based on the annual financial reports published by
each Company shows that there are outstanding values (beyond the
normal value) for 13 (thirteen) issuers, namely: ADRO, BRPT, DOID, HRUM, INCO,
INKP, ITMG, MDKA, MEDC, PGAS, TKIM, TPIA and UNVR. Because there is an
outstanding FP value, the results of the statistical test performed produce an
unreliable output. Therefore, it is necessary to adjust the test data to be
used. This study decided to eliminate issuers with outstanding data. So that
all statistical tests carried out later only used 67 out of 80 issuers that
belonged to the IDX-80.
Table 2. Variable E data
|
NO. |
EMITEN |
YEAR |
AVERAGE |
||
|
2019 |
2020 |
2021 |
|||
|
1 |
AALI |
292 |
315 |
315 |
308 |
|
2 |
ACES |
225 |
325 |
292 |
281 |
|
3 |
ADHI* |
1284 |
1390 |
N/A |
1337 |
|
4 |
ADRO |
678 |
744 |
788 |
737 |
|
5 |
AKRA |
1240 |
1002 |
621 |
955 |
|
6 |
AMRT |
428 |
692 |
1145 |
755 |
|
7 |
ANTM |
1933 |
2215 |
2222 |
2124 |
|
8 |
ASII |
467 |
557 |
556 |
527 |
|
9 |
ASRI |
359 |
350 |
835 |
515 |
|
10 |
ASSA |
842 |
968 |
1026 |
946 |
|
11 |
BBCA |
1745 |
1860 |
2033 |
1880 |
|
12 |
BBNI |
2867 |
2565 |
3156 |
2863 |
|
13 |
BBRI |
2892 |
2979 |
2045 |
2639 |
|
14 |
BBTN |
2211 |
2182 |
3140 |
2511 |
|
15 |
BEST |
393 |
1390 |
396 |
727 |
|
16 |
BFIN |
173 |
212 |
186 |
191 |
|
17 |
BJBR |
1910 |
1573 |
1583 |
1689 |
|
18 |
BJTM |
1244 |
2009 |
1597 |
1617 |
|
19 |
BMRI |
2605 |
2846 |
2431 |
2628 |
|
20 |
BMTR |
436 |
445 |
228 |
370 |
|
21 |
BRIS |
691 |
1004 |
1557 |
1084 |
|
22 |
BRPT |
707 |
705 |
685 |
699 |
|
23 |
BSDE |
609 |
639 |
293 |
514 |
|
24 |
BTPS |
887 |
991 |
1369 |
1083 |
|
25 |
CPIN |
409 |
60 |
322 |
264 |
|
26 |
CTRA |
519 |
588 |
458 |
522 |
|
27 |
DMAS |
214 |
360 |
672 |
416 |
|
28 |
DOID |
569 |
614 |
719 |
634 |
|
29 |
ELSA |
1045 |
1154 |
1207 |
1136 |
|
30 |
ERAA |
375 |
490 |
964 |
610 |
|
31 |
EXCL |
399 |
393 |
307 |
367 |
|
32 |
GGRM |
155 |
197 |
250 |
201 |
|
33 |
HMSP |
691 |
776 |
976 |
815 |
|
34 |
HOKI |
305 |
545 |
357 |
403 |
|
35 |
HRUM |
393 |
424 |
379 |
399 |
|
36 |
ICBP |
454 |
568 |
411 |
478 |
|
37 |
INCO |
588 |
608 |
625 |
607 |
|
38 |
INDF |
512 |
628 |
447 |
529 |
|
39 |
INKP |
423 |
444 |
370 |
413 |
|
40 |
INTP |
1044 |
1229 |
913 |
1062 |
|
41 |
IPTV |
317 |
427 |
535 |
427 |
|
42 |
ISAT |
717 |
720 |
827 |
755 |
|
43 |
ITMG |
833 |
873 |
890 |
866 |
|
44 |
JPFA |
618 |
781 |
525 |
642 |
|
45 |
JSMR |
2135 |
1769 |
1797 |
1901 |
|
46 |
KAEF |
1156 |
1250 |
1592 |
1333 |
|
47 |
KLBF |
839 |
1004 |
864 |
903 |
|
48 |
LINK |
493 |
607 |
469 |
523 |
|
49 |
LPKR |
1183 |
374 |
343 |
634 |
|
50 |
LPPF |
456 |
504 |
975 |
645 |
|
51 |
LSIP |
314 |
351 |
337 |
334 |
|
52 |
MAPI |
221 |
347 |
292 |
287 |
|
53 |
MDKA |
342 |
470 |
640 |
484 |
|
54 |
MEDC* |
418 |
507 |
N/A |
463 |
|
55 |
MIKA |
517 |
812 |
966 |
765 |
|
56 |
MNCN |
436 |
445 |
228 |
370 |
|
57 |
MYOR |
193 |
330 |
567 |
364 |
|
58 |
PGAS |
1501 |
1276 |
1173 |
1317 |
|
59 |
PTBA |
1681 |
1717 |
1421 |
1607 |
|
60 |
PTPP |
1914 |
2176 |
1481 |
1857 |
|
61 |
PWON |
392 |
750 |
812 |
652 |
|
62 |
RALS |
246 |
625 |
603 |
492 |
|
63 |
SCMA |
577 |
652 |
582 |
604 |
|
64 |
SIDO |
742 |
746 |
539 |
676 |
|
65 |
SMBR |
1443 |
2140 |
1225 |
1603 |
|
66 |
SMGR |
740 |
1013 |
1231 |
995 |
|
67 |
SMRA |
397 |
509 |
467 |
458 |
|
68 |
SSIA |
429 |
471 |
500 |
467 |
|
69 |
TBIG |
349 |
415 |
461 |
409 |
|
70 |
TINS |
1484 |
1875 |
1398 |
1586 |
|
71 |
TKIM |
423 |
455 |
377 |
419 |
|
72 |
TLKM |
1226 |
1697 |
1116 |
1347 |
|
73 |
TOWR |
488 |
519 |
641 |
550 |
|
74 |
TPIA |
552 |
801 |
891 |
748 |
|
75 |
UNTR |
673 |
978 |
652 |
768 |
|
76 |
UNVR |
1105 |
1018 |
556 |
893 |
|
77 |
WIIM |
356 |
506 |
328 |
397 |
|
78 |
WIKA |
1297 |
1828 |
1908 |
1678 |
|
79 |
WOOD |
347 |
348 |
414 |
370 |
|
80 |
WSKT |
1812 |
2176 |
1880 |
1956 |
Table 3. Variable CG data
|
EMITEN |
2019 |
2020 |
2021 |
AVERAGE |
||||
|
# KI |
# KA |
# KI |
# KA |
# KI |
# KA |
# KI |
# KA |
|
|
AALI |
50.00% |
3 |
60.00% |
3 |
50.00% |
3 |
53.33% |
3.00 |
|
ACES |
50.00% |
3 |
66.67% |
3 |
50.00% |
3 |
55.56% |
3.00 |
|
ADHI |
50.00% |
3 |
33.33% |
3 |
N/A |
N/A |
41.67% |
3.00 |
|
ADRO |
40.00% |
3 |
40.00% |
3 |
40.00% |
3 |
40.00% |
3.00 |
|
AKRA |
25.00% |
3 |
33.33% |
3 |
33.33% |
3 |
30.56% |
3.00 |
|
AMRT |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
ANTM |
33.33% |
4 |
50.00% |
6 |
50.00% |
4 |
44.44% |
4.67 |
|
ASII |
30.00% |
4 |
30.00% |
4 |
40.00% |
4 |
33.33% |
4.00 |
|
ASRI |
40.00% |
3 |
40.00% |
3 |
40.00% |
3 |
40.00% |
3.00 |
|
ASSA |
50.00% |
2 |
33.33% |
3 |
33.33% |
3 |
38.89% |
2.67 |
|
BBCA |
60.00% |
3 |
60.00% |
3 |
60.00% |
3 |
60.00% |
3.00 |
|
BBNI |
55.56% |
4 |
70.00% |
5 |
70.00% |
5 |
65.19% |
4.67 |
|
BBRI |
54.55% |
7 |
60.00% |
8 |
63.64% |
8 |
59.39% |
7.67 |
|
BBTN |
50.00% |
3 |
50.00% |
4 |
57.14% |
4 |
52.38% |
3.67 |
|
BEST |
60.00% |
3 |
60.00% |
3 |
66.67% |
3 |
62.22% |
3.00 |
|
BFIN |
42.86% |
3 |
42.86% |
3 |
33.33% |
3 |
39.68% |
3.00 |
|
BJBR |
60.00% |
4 |
60.00% |
4 |
66.67% |
3 |
62.22% |
3.67 |
|
BJTM |
50.00% |
3 |
50.00% |
4 |
50.00% |
4 |
50.00% |
3.67 |
|
BMRI |
50.00% |
7 |
50.00% |
7 |
45.45% |
7 |
48.48% |
7.00 |
|
BMTR |
75.00% |
3 |
75.00% |
3 |
75.00% |
3 |
75.00% |
3.00 |
|
BRIS |
50.00% |
5 |
50.00% |
5 |
50.00% |
8 |
50.00% |
6.00 |
|
BRPT |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
BSDE |
25.00% |
3 |
25.00% |
3 |
25.00% |
3 |
25.00% |
3.00 |
|
BTPS |
50.00% |
4 |
50.00% |
5 |
50.00% |
5 |
50.00% |
4.67 |
|
CPIN |
33.33% |
4 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.33 |
|
CTRA |
37.50% |
3 |
42.86% |
3 |
42.86% |
3 |
41.07% |
3.00 |
|
DMAS |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
DOID |
57.14% |
3 |
57.14% |
3 |
60.00% |
3 |
58.10% |
3.00 |
|
ELSA |
40.00% |
3 |
50.00% |
5 |
50.00% |
3 |
46.67% |
3.67 |
|
ERAA |
50.00% |
4 |
33.33% |
3 |
33.33% |
3 |
38.89% |
3.33 |
|
EXCL |
66.67% |
4 |
66.67% |
3 |
37.50% |
4 |
56.94% |
3.67 |
|
GGRM |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
HMSP |
37.50% |
3 |
50.00% |
3 |
50.00% |
3 |
45.83% |
3.00 |
|
HOKI |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
HRUM |
33.33% |
3 |
50.00% |
3 |
33.33% |
3 |
38.89% |
3.00 |
|
ICBP |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
INCO |
20.00% |
3 |
30.00% |
3 |
30.00% |
3 |
26.67% |
3.00 |
|
INDF |
37.50% |
3 |
37.50% |
3 |
37.50% |
3 |
37.50% |
3.00 |
|
INKP |
42.86% |
3 |
42.86% |
3 |
42.86% |
3 |
42.86% |
3.00 |
|
INTP |
33.33% |
4 |
33.33% |
3 |
42.86% |
3 |
36.51% |
3.33 |
|
IPTV |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
ISAT |
33.33% |
3 |
30.00% |
3 |
33.33% |
4 |
32.22% |
3.33 |
|
ITMG |
50.00% |
3 |
42.86% |
3 |
42.86% |
3 |
45.24% |
3.00 |
|
JPFA |
50.00% |
3 |
60.00% |
3 |
33.33% |
3 |
47.78% |
3.00 |
|
JSMR |
33.33% |
5 |
50.00% |
4 |
33.33% |
4 |
38.89% |
4.33 |
|
KAEF |
40.00% |
4 |
40.00% |
4 |
50.00% |
4 |
43.33% |
4.00 |
|
KLBF |
42.86% |
3 |
42.86% |
3 |
42.86% |
3 |
42.86% |
3.00 |
|
LINK |
33.33% |
3 |
50.00% |
3 |
40.00% |
3 |
41.11% |
3.00 |
|
LPKR |
40.00% |
4 |
50.00% |
3 |
33.33% |
4 |
41.11% |
3.67 |
|
LPPF |
40.00% |
3 |
50.00% |
3 |
75.00% |
3 |
55.00% |
3.00 |
|
LSIP |
40.00% |
3 |
40.00% |
3 |
40.00% |
3 |
40.00% |
3.00 |
|
MAPI |
40.00% |
3 |
40.00% |
3 |
40.00% |
3 |
40.00% |
3.00 |
|
MDKA |
40.00% |
3 |
33.33% |
3 |
33.33% |
3 |
35.56% |
3.00 |
|
MEDC |
40.00% |
3 |
50.00% |
3 |
N/A |
N/A |
45.00% |
3.00 |
|
MIKA |
66.67% |
3 |
66.67% |
3 |
66.67% |
3 |
66.67% |
3.00 |
|
MNCN |
33.33% |
4 |
33.33% |
4 |
33.33% |
4 |
33.33% |
4.00 |
|
MYOR |
40.00% |
3 |
40.00% |
3 |
40.00% |
3 |
40.00% |
3.00 |
|
PGAS |
50.00% |
4 |
50.00% |
5 |
50.00% |
5 |
50.00% |
4.67 |
|
PTBA |
33.33% |
4 |
33.33% |
4 |
33.33% |
4 |
33.33% |
4.00 |
|
PTPP |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
PWON |
33.33% |
3 |
33.33% |
3 |
33.33% |
4 |
33.33% |
3.33 |
|
RALS |
20.00% |
3 |
33.33% |
3 |
33.33% |
3 |
28.89% |
3.00 |
|
SCMA |
40.00% |
3 |
50.00% |
3 |
50.00% |
3 |
46.67% |
3.00 |
|
SIDO |
40.00% |
3 |
50.00% |
3 |
50.00% |
3 |
46.67% |
3.00 |
|
SMBR |
40.00% |
3 |
50.00% |
3 |
50.00% |
3 |
46.67% |
3.00 |
|
SMGR |
28.57% |
3 |
28.57% |
3 |
28.57% |
4 |
28.57% |
3.33 |
|
SMRA |
60.00% |
3 |
60.00% |
3 |
60.00% |
3 |
60.00% |
3.00 |
|
SSIA |
33.33% |
3 |
20.00% |
3 |
40.00% |
3 |
31.11% |
3.00 |
|
TBIG |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
TINS |
40.00% |
4 |
40.00% |
4 |
50.00% |
4 |
43.33% |
4.00 |
|
TKIM |
42.86% |
3 |
42.86% |
3 |
42.86% |
3 |
42.86% |
3.00 |
|
TLKM |
66.67% |
5 |
44.44% |
6 |
44.44% |
7 |
51.85% |
6.00 |
|
TOWR |
50.00% |
3 |
50.00% |
3 |
40.00% |
3 |
46.67% |
3.00 |
|
TPIA |
42.86% |
3 |
42.86% |
3 |
35.71% |
3 |
40.48% |
3.00 |
|
UNTR |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
UNVR |
80.00% |
3 |
83.33% |
3 |
83.33% |
4 |
82.22% |
3.33 |
|
WIIM |
33.33% |
3 |
33.33% |
3 |
33.33% |
3 |
33.33% |
3.00 |
|
WIKA |
42.86% |
6 |
42.86% |
4 |
57.14% |
4 |
47.62% |
4.67 |
|
WOOD |
50.00% |
3 |
50.00% |
3 |
50.00% |
3 |
50.00% |
3.00 |
|
WSKT |
42.86% |
4 |
42.86% |
3 |
28.57% |
3 |
38.10% |
3.33 |
Table 4. Variable CSR data
|
NO. |
EMITEN |
NUMBER OF NEWS |
NO. |
EMITEN |
NUMBER OF NEWS |
|
1 |
AALI |
23 |
18 |
BJTM |
13 |
|
2 |
ACES |
4 |
19 |
BMRI |
23 |
|
3 |
ADHI |
7 |
20 |
BMTR |
7 |
|
4 |
ADRO |
18 |
21 |
BRIS |
7 |
|
5 |
AKRA |
11 |
22 |
BRPT |
3 |
|
6 |
AMRT |
30 |
23 |
BSDE |
16 |
|
7 |
ANTM |
7 |
24 |
BTPS |
12 |
|
8 |
ASII |
12 |
25 |
CPIN |
9 |
|
9 |
ASRI |
10 |
26 |
CTRA |
6 |
|
10 |
ASSA |
9 |
27 |
DMAS |
0 |
|
11 |
BBCA |
16 |
28 |
DOID |
7 |
|
12 |
BBNI |
26 |
29 |
ELSA |
8 |
|
13 |
BBRI |
30 |
30 |
ERAA |
6 |
|
14 |
BBTN |
28 |
31 |
EXCL |
7 |
|
15 |
BEST |
14 |
32 |
GGRM |
11 |
|
16 |
BFIN |
5 |
33 |
HMSP |
8 |
|
17 |
BJBR |
19 |
34 |
HOKI |
3 |
|
35 |
HRUM |
1 |
58 |
PGAS |
23 |
|
36 |
ICBP |
7 |
59 |
PTBA |
31 |
|
37 |
INCO |
13 |
60 |
PTPP |
18 |
|
38 |
INDF |
12 |
61 |
PWON |
3 |
|
39 |
INKP |
4 |
62 |
RALS |
9 |
|
40 |
INTP |
2 |
63 |
SCMA |
1 |
|
41 |
IPTV |
4 |
64 |
SIDO |
10 |
|
42 |
ISAT |
30 |
65 |
SMBR |
7 |
|
43 |
ITMG |
7 |
66 |
SMGR |
9 |
|
44 |
JPFA |
8 |
67 |
SMRA |
4 |
|
45 |
JSMR |
4 |
68 |
SSIA |
0 |
|
46 |
KAEF |
9 |
69 |
TBIG |
11 |
|
47 |
KLBF |
6 |
70 |
TINS |
22 |
|
48 |
LINK |
20 |
71 |
TKIM |
8 |
|
49 |
LPKR |
8 |
72 |
TLKM |
7 |
|
50 |
LPPF |
2 |
73 |
TOWR |
3 |
|
51 |
LSIP |
0 |
74 |
TPIA |
17 |
|
52 |
MAPI |
4 |
75 |
UNTR |
6 |
|
53 |
MDKA |
6 |
76 |
UNVR |
10 |
|
54 |
MEDC |
7 |
77 |
WIIM |
2 |
|
55 |
MIKA |
15 |
78 |
WIKA |
18 |
|
56 |
MNCN |
6 |
79 |
WOOD |
2 |
|
57 |
MYOR |
12 |
80 |
WSKT |
12 |
Table 5. Variable FP data
|
EMITEN |
2019 |
2020 |
2021 |
AVERAGE |
||||
|
ROE |
Q Ratio |
ROE |
Q Ratio |
ROE |
Q Ratio |
ROE |
Q Ratio |
|
|
AALI |
1.11% |
1.39 |
4.33% |
1.17 |
9.31% |
0.84 |
4.92% |
1.13 |
|
ACES |
21.72% |
5.10 |
14.04% |
5.37 |
12.78% |
3.89 |
16.18% |
4.78 |
|
ADHI |
9.71% |
0.59 |
0.43% |
0.98 |
0.98% |
0.56 |
3.71% |
0.71 |
|
ADRO |
10.15% |
9677.95 |
3.72% |
9751.65 |
20.94% |
15431.45 |
11.60% |
11620.35 |
|
AKRA |
7.12% |
1.43 |
8.76% |
1.14 |
9.84% |
1.44 |
8.57% |
1.34 |
|
AMRT |
16.16% |
5.08 |
13.90% |
4.26 |
21.70% |
5.55 |
17.25% |
4.97 |
|
ANTM |
1.07% |
0.22 |
6.04% |
2.39 |
8.93% |
2.55 |
5.35% |
1.72 |
|
ASII |
11.62% |
1.38 |
8.27% |
1.19 |
9.37% |
1.04 |
9.75% |
1.20 |
|
ASRI |
9.58% |
0.44 |
-10.95% |
0.51 |
1.53% |
0.33 |
0.05% |
0.43 |
|
ASSA |
8.25% |
2.04 |
6.05% |
1.62 |
8.08% |
6.70 |
7.46% |
3.45 |
|
BBCA |
16.40% |
4.49 |
14.69% |
4.37 |
15.49% |
4.37 |
15.53% |
4.41 |
|
BBNI |
12.31% |
1.11 |
2.91% |
0.99 |
8.61% |
0.98 |
7.94% |
1.03 |
|
BBRI |
16.46% |
2.60 |
9.33% |
2.65 |
10.65% |
2.05 |
12.15% |
2.43 |
|
BBTN |
0.88% |
0.93 |
8.02% |
0.90 |
11.10% |
0.84 |
6.66% |
0.89 |
|
BEST |
8.51% |
0.47 |
-2.64% |
0.40 |
-1.65% |
0.25 |
1.40% |
0.37 |
|
BFIN |
11.70% |
1.36 |
10.62% |
1.30 |
15.23% |
2.50 |
12.52% |
1.72 |
|
BJBR |
12.94% |
0.77 |
14.05% |
1.12 |
15.53% |
0.94 |
14.18% |
0.94 |
|
BJTM |
14.99% |
0.84 |
14.88% |
0.84 |
13.96% |
0.97 |
14.61% |
0.88 |
|
BMRI |
13.15% |
1.51 |
8.83% |
1.41 |
12.62% |
1.41 |
11.53% |
1.44 |
|
BMTR |
8.08% |
0.31 |
4.39% |
0.23 |
5.65% |
0.18 |
6.04% |
0.24 |
|
BRIS |
1.45% |
0.62 |
4.56% |
4.04 |
12.11% |
2.89 |
6.04% |
2.52 |
|
BRPT |
1.60% |
48437.66 |
1.23% |
34570.77 |
2.56% |
18712.16 |
1.80% |
33906.86 |
|
BSDE |
8.32% |
0.72 |
0.82% |
0.75 |
3.76% |
0.60 |
4.30% |
0.69 |
|
BTPS |
25.95% |
5.77 |
14.54% |
4.77 |
20.65% |
3.81 |
20.38% |
4.79 |
|
CPIN |
17.25% |
4.80 |
16.45% |
4.41 |
14.40% |
3.80 |
16.03% |
4.34 |
|
CTRA |
6.52% |
1.06 |
7.57% |
1.04 |
8.95% |
0.93 |
7.68% |
1.01 |
|
DMAS |
20.55% |
1.42 |
24.38% |
1.94 |
13.36% |
1.69 |
19.43% |
1.69 |
|
DOID |
1.88% |
2210.66 |
3.82% |
-5762.73 |
105.60% |
8567.43 |
37.10% |
1671.79 |
|
ELSA |
9.97% |
0.57 |
6.66% |
0.67 |
2.88% |
0.53 |
6.50% |
0.59 |
|
ERAA |
5.93% |
1.07 |
10.76% |
1.15 |
15.67% |
1.41 |
10.78% |
1.21 |
|
EXCL |
3.73% |
1.69 |
1.94% |
1.30 |
6.41% |
1.66 |
4.03% |
1.55 |
|
GGRM |
21.36% |
1.87 |
13.07% |
1.26 |
9.45% |
0.99 |
14.63% |
1.38 |
|
HMSP |
38.46% |
5.70 |
28.38% |
5.13 |
24.45% |
3.61 |
30.43% |
4.81 |
|
HOKI |
16.17% |
3.40 |
5.74% |
3.65 |
1.91% |
2.62 |
7.94% |
3.22 |
|
HRUM |
4.63% |
8797.60 |
12.97% |
17450.33 |
11.39% |
42582.77 |
9.67% |
22943.57 |
|
ICBP |
18.89% |
4.64 |
13.09% |
2.16 |
11.67% |
1.85 |
14.55% |
2.89 |
|
INCO |
2.96% |
18454.42 |
3.62% |
21969.48 |
7.70% |
21584.08 |
4.76% |
20669.33 |
|
INDF |
9.06% |
1.18 |
8.16% |
0.73 |
8.82% |
0.64 |
8.68% |
0.85 |
|
INKP |
6.85% |
10327.55 |
6.92% |
13251.76 |
11.08% |
8938.56 |
8.28% |
10839.29 |
|
INTP |
7.95% |
2.59 |
8.15% |
2.17 |
8.67% |
2.05 |
8.26% |
2.27 |
|
IPTV |
5.51% |
3.14 |
3.15% |
1.82 |
2.44% |
0.87 |
3.70% |
1.94 |
|
ISAT |
11.45% |
1.04 |
-5.55% |
1.91 |
65.52% |
3.27 |
23.81% |
2.07 |
|
ITMG |
14.63% |
11034.55 |
4.66% |
15420.86 |
29.36% |
12729.87 |
16.22% |
13061.76 |
|
JPFA |
15.42% |
1.17 |
8.03% |
1.14 |
15.44% |
1.19 |
12.96% |
1.17 |
|
JSMR |
9.52% |
1.61 |
2.02% |
1.36 |
6.33% |
1.11 |
5.96% |
1.36 |
|
KAEF |
-0.17% |
0.93 |
0.25% |
3.28 |
4.18% |
1.85 |
1.42% |
2.02 |
|
KLBF |
15.01% |
4.29 |
14.96% |
3.64 |
14.97% |
3.48 |
14.98% |
3.80 |
|
LINK |
19.21% |
2.20 |
20.37% |
1.46 |
16.87% |
2.18 |
18.82% |
1.94 |
|
LPKR |
-5.77% |
0.50 |
-37.72% |
0.64 |
-7.13% |
0.44 |
-16.87% |
0.53 |
|
LPPF |
78.26% |
6.10 |
-150.26% |
5.39 |
90.74% |
10.69 |
6.25% |
7.39 |
|
LSIP |
2.99% |
1.15 |
7.50% |
0.99 |
9.74% |
0.79 |
6.74% |
0.98 |
|
MAPI |
12.67% |
2.38 |
-8.52% |
2.02 |
6.19% |
1.66 |
3.44% |
2.02 |
|
MDKA |
13.51% |
45811.48 |
6.42% |
96766.24 |
4.64% |
117178.93 |
8.19% |
86585.55 |
|
MEDC |
-2.02% |
11426.77 |
-15.57% |
12222.32 |
3.82% |
9528.30 |
-4.59% |
11059.13 |
|
MIKA |
15.23% |
7.66 |
15.26% |
6.86 |
20.74% |
5.36 |
17.08% |
6.63 |
|
MNCN |
17.83% |
1.84 |
12.08% |
1.18 |
13.57% |
0.77 |
14.49% |
1.26 |
|
MYOR |
20.08% |
4.41 |
18.28% |
5.19 |
10.45% |
3.97 |
16.27% |
4.53 |
|
PGAS |
2.09% |
13700.95 |
-8.96% |
12623.32 |
9.25% |
9435.73 |
0.79% |
11920.00 |
|
PTBA |
22.02% |
1.19 |
14.09% |
1.58 |
32.61% |
1.10 |
22.91% |
1.29 |
|
PTPP |
5.37% |
0.55 |
0.92% |
0.83 |
1.86% |
0.43 |
2.71% |
0.60 |
|
PWON |
15.03% |
1.50 |
5.28% |
1.38 |
7.21% |
1.15 |
9.17% |
1.35 |
|
RALS |
15.54% |
1.60 |
-3.73% |
1.41 |
4.74% |
1.24 |
5.52% |
1.42 |
|
SCMA |
19.50% |
3.75 |
29.47% |
8.58 |
18.06% |
3.19 |
22.34% |
5.17 |
|
SIDO |
26.35% |
5.61 |
28.99% |
7.00 |
36.32% |
7.30 |
30.56% |
6.64 |
|
SMBR |
0.86% |
1.25 |
0.32% |
3.10 |
1.49% |
1.78 |
0.89% |
2.04 |
|
SMGR |
7.06% |
2.00 |
7.83% |
1.98 |
5.08% |
1.05 |
6.66% |
1.68 |
|
SMRA |
5.45% |
1.58 |
1.98% |
1.28 |
2.88% |
1.23 |
3.44% |
1.36 |
|
SSIA |
2.06% |
0.68 |
-2.07% |
0.64 |
-4.94% |
0.56 |
-1.65% |
0.63 |
|
TBIG |
14.84% |
4.78 |
10.85% |
3.86 |
15.82% |
6.74 |
13.84% |
5.13 |
|
TINS |
-11.62% |
1.13 |
-6.89% |
2.17 |
20.65% |
1.66 |
0.71% |
1.66 |
|
TKIM |
12.02% |
22839.87 |
9.81% |
20129.25 |
14.18% |
13290.09 |
12.00% |
18753.07 |
|
TLKM |
16.27% |
2.93 |
17.47% |
2.50 |
17.14% |
2.66 |
16.96% |
2.70 |
|
TOWR |
26.73% |
4.35 |
27.85% |
4.61 |
28.41% |
4.67 |
27.66% |
4.54 |
|
TPIA |
1.30% |
104115.01 |
2.83% |
88533.58 |
5.20% |
54074.20 |
3.11% |
82240.93 |
|
UNTR |
18.51% |
1.17 |
9.51% |
1.47 |
14.31% |
1.12 |
14.11% |
1.25 |
|
UNVR |
139.97% |
56.36 |
145.09% |
54.06 |
133.25% |
35.67 |
139.44% |
48.69 |
|
WIIM |
2.64% |
0.31 |
14.53% |
0.88 |
13.40% |
0.65 |
10.19% |
0.61 |
|
WIKA |
11.89% |
0.89 |
1.12% |
1.07 |
0.67% |
0.57 |
4.56% |
0.84 |
|
WOOD |
8.04% |
1.59 |
10.38% |
1.16 |
14.73% |
1.47 |
11.05% |
1.41 |
|
WSKT |
3.22% |
0.69 |
-44.51% |
1.18 |
-7.09% |
0.56 |
-16.13% |
0.81 |
Excluded data is highlighted
The
results of Cronbach's Alpha (α) for testing all variables were α ≥
0.6, so that in other words the internal consistency for this study was in the “Acceptable”
category (shown in Figure 1). Correlation test results (Table 2) shows that the
Ethics, Corporate Governance and Corporate Social Responsibility variables have
a strong relationship or influence each other. Then, based on the results of
the correlation test, it can be seen that the Financial Performance variable
does not have a strong relationship or does not influence each other on the
other test variables. Based on the results of the linear regression test
between variables, it was found that variable E significantly affects the CG
variable, the variable E has a significant effect on the CSR variable, the CG
variable has no effect on the FP variable, and the CSR variable has no effect
on the FP variable.
|
Figure 1. Reliability Test Result |
Figure 2. Correlation Test Result |
CONCLUSION
This study succeeded in finding important things in accordance
with the number of hypotheses that have been stated, namely proving that the
variable ethics (E) in business influences the corporate governance (CG)
variable applied by the company concerned, the variable E in business
influences the corporate social responsibility variable (CSR) carried out by
related companies, the CG variable has no effect on the financial performance
(FP) variable achieved by the related companies, and finally the CSR variable
has no effect on the FP variable achieved by the related companies. Each data collected
will be processed to obtain the average value of each issuer for three years
(2019, 2020, 2021) from each research indicator. Which is known, that in 2020
there was an international disaster, the COVID-19 pandemic. Reporting of
secondary data and reporting of CSR activities on the internet mass media may
experience disturbances, especially in 2020. The impact of CG and CSR which is
deemed to be of little benefit to the Company, may lead to the possibility of
the practice of Corporate Governance and/or CSR being a formality or only as a
prerequisite in order to avoid penalties/violations of regulations. In the long
run, this will also have an impact on the formation of business practice trends
that may not consider the importance of implementing transparent and
independent Corporate Governance and the implementation of CSR in Indonesia in
particular. The values of business ethics, good corporate
governance, corporate social responsibility are corporate characteristics consisting
of several aspects. It is hoped that further research will be carried out that
examines these three variables but from a different side/point of view/aspect,
as a complement to this research. Also, follow-up research based on primary
data (observation) can be carried out directly on related companies, in order
to support more accurate research results.
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