The role of CSR and independent commissioner in improving financial performance: does company size matter?

Abstract

Companies are required not only to pursue profits, but also to pay attention to social responsibility and good governance. In this context, Corporate Social Responsibility (CSR) and the role of independent commissioners are important factors in creating long-term value for companies. This study aims to analyze the influence of CSR and the presence of independent commissioners on the financial performance of food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2021–2023. The specific objectives of this study are: (1) to analyze the effect of CSR on company financial performance, (2) to analyze the effect of independent commissioners on company financial performance, and (3) to analyze the simultaneous effect of CSR and independent commissioners on financial performance. This study uses a quantitative approach with multiple linear regression analysis techniques. The sample used consisted of 24 food and beverage manufacturing companies that met the inclusion criteria during the research period. The results showed that CSR had a positive and significant effect on corporate financial performance, indicating that companies active in social responsibility activities tended to have better financial performance. However, different results were found for the independent commissioner variable, which did not show a significant effect on financial performance. These findings indicate that the presence of independent commissioners does not significantly affect corporate financial performance.