The Effect of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) on Financial Performance (Case Study on Construction Companies Listed on the Indonesia Stock Exchange (IDX) 2018-2023)

Abstract

The purpose of this research is to find out and analyze the effect of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) on financial performance which was carried out by construction companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2023. This research method uses quantitative methods and multiple regression analysis by testing classical assumptions before getting the best research model. Variables that are used in this research are managerial ownership, audit committee, board of commissioners, and corporate social responsibility as independent variables and financial performance as dependent variables. The sample in this study is a construction company listed on the Indonesian stock exchange in 2018-2023. The data used in this study are secondary data taken from the annual reports of related companies. The results of this study indicate that good corporate governance through the corporate social responsibility board of commissioners had an effect on financial performance, while managerial ownership and the audit committee had no effect on company performance.