The Influence of Corporate Governance, Intellectual Capital and Corporate Social Responsibility on The Financial Performance of Pharmaceutical Companies on The Indonesia Stock Exchange
##plugins.themes.EpsilonTheme.article.main##
Yuniep Mujati Suaidah*
This study aims to test and prove the effect of corporate governance, intellectual capital, and Corporate Social Responsibility on the financial performance of the pharmaceutical sector. This research is descriptive and quantitative. Secondary data sources were used with documentation data collection techniques. The sampling technique was purposive sampling, with criteria including pharmaceutical sector companies that published complete financial reports from 2010 to 2023, resulting in a sample of 135 financial reports. The results indicate that corporate governance does not affect financial performance, implying that pharmaceutical companies are less able to build governance to improve financial performance. Intellectual capital affects financial performance, indicating that pharmaceutical sector companies can utilize resources to improve financial performance. Corporate Social Responsibility affects financial performance, meaning that the responsibilities carried out by companies in terms of economic, social, and environmental aspects can improve financial performance.
Ahamed, W. S. W., Almsafir, M. K., & Al-Smadi, A. W. (2014). Does corporate social responsibility lead to improve in firm financial performance? Evidence from Malaysia. International Journal of Economics and Finance, 6(3), 126–138.
Anghel, I., Siminică, M., Cristea, M., Sichigea, M., & Noja, G. G. (2018). Intellectual capital and financial performance of biotech companies in the pharmaceutical industry. Amfiteatru Economic, 20(49), 631–646.
Bontis, N., Ciambotti, M., Palazzi, F., & Sgro, F. (2018). Intellectual capital and financial performance in social cooperative enterprises. Journal of Intellectual Capital, 19(4), 712–731.
Brown, L. D., & Caylor, M. L. (2004). Corporate governance and firm performance. Available at SSRN 586423.
El-Chaarani, H., Abraham, R., & Skaf, Y. (2022). The impact of corporate governance on the financial performance of the banking sector in the MENA (Middle Eastern and North African) region: An immunity test of banks for COVID-19. Journal of Risk and Financial Management, 15(2), 82.
Fatihudin, D. (2018). How measuring financial performance. International Journal of Civil Engineering and Technology (IJCIET), 9(6), 553–557.
Ge, F., & Xu, J. (2021). Does intellectual capital investment enhance firm performance? Evidence from pharmaceutical sector in China. Technology Analysis & Strategic Management, 33(9), 1006–1021.
Ghelli, C., & Schrøder, P. (2013). Corporate Social Responsibility An Empirical Evidence. Master of Economics and Business Administration). Cophehagen Business School, Danmark.
Guest, P. M. (2009). The impact of board size on firm performance: evidence from the UK. The European Journal of Finance, 15(4), 385–404.
Handriani, E., & Robiyanto, R. (2019). Institutional ownership, independent board, the board size, and firm performance: Evidence from Indonesia. Contaduría y Administración, 64(3).
Ibrahim, M. I. M., & Wertheimer, A. I. (2018). Introduction: Discovering Issues and Challenges in Low-and Middle-Income Countries. Social and Administrative Aspects of Pharmacy in Low-and Middle-Income Countries, 1–11.
Kyere, M., & Ausloos, M. (2021). Corporate governance and firms financial performance in the United Kingdom. International Journal of Finance & Economics, 26(2), 1871–1885.
Mahrani, M., & 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), 41–60.
Malik, M. S., & Kanwal, L. (2018). Impact of corporate social responsibility disclosure on financial performance: case study of listed pharmaceutical firms of Pakistan. Journal of Business Ethics, 150, 69–78.
Nawaz, T., & Haniffa, R. (2017). Determinants of financial performance of Islamic banks: an intellectual capital perspective. Journal of Islamic Accounting and Business Research, 8(2), 130–142.
Olarewaju, O. M., & Msomi, T. S. (2021). Intellectual capital and financial performance of South African development community’s general insurance companies. Heliyon, 7(4).
Palmer, H. J. (2012). Corporate social responsibility and financial performance: does it pay to be good?
Pratiwi, P., Ekawati, E., Kurniawan, M., & Restianita, O. (2021). Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Terhadap Kinerja Keuangan Perusahaan Dalam Perspektif Ekonomi Islam. Al-Mal: Jurnal Akuntansi Dan Keuangan Islam, 2(2), 249–272.
Rahman, M., Chowdhury, S., & Rasid, S. Z. A. (2020). Corporate social responsibility and firm financial performance: Bangladeshi listed pharmaceutical companies. International Journal of Emerging Technologies and Innovative Research (JETIR), 7(1), 213–222.
Said, A. L. (2018). Corporate Social Responsibility dalam perspektif governance. Deepublish.
Saidat, Z., Silva, M., & Seaman, C. (2019). The relationship between corporate governance and financial performance: Evidence from Jordanian family and nonfamily firms. Journal of Family Business Management, 9(1), 54–78.
Saleh, M., Zulkifli, N., & Muhamad, R. (2011). Looking for evidence of the relationship between corporate social responsibility and corporate financial performance in an emerging market. Asia-Pacific Journal of Business Administration, 3(2), 165–190.
Sardo, F., Serrasqueiro, Z., & Alves, H. (2018). On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels. International Journal of Hospitality Management, 75. https://doi.org/10.1016/j.ijhm.2018.03.001
Siregar, M., & Azzahra, K. (2022). The Effect Of Corporate Social Responsibility, Company Size And Capital Intensity On Tax Avoidance. MARGINAL : Journal Of Management, Accountıng, General Fınance And Internatıonal Economıc Issues, 1(4). https://doi.org/10.55047/marginal.v1i4.309
Susanti, N., Widajatun, V. W., Aji, M. B., & Nugraha, N. M. (2020). Implications of intellectual capital financial performance and corporate values. International Journal of Psychosocial Rehabilitation, 24(07), 6588–6599.
Tyagı, M. (2021). A Study On Impact Of Csr On Fınancıal Performance Of Companıes In Indıa Wıth Respect To FMCG And Pharmaceutıcal Sector.
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2021). Intellectual capital and firm performance: the mediating role of innovation speed and quality. The International Journal of Human Resource Management, 32(6), 1222–1250.
Weqar, F., Khan, A. M., Raushan, M. A., & Haque, S. M. I. (2021). Measuring the impact of intellectual capital on the financial performance of the finance sector of India. Journal of the Knowledge Economy, 12(3), 1134–1151.
