Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


Firm Strategy, CSR Governance, and Financial Performance: Evidence from Companies Listed on Indonesia Stock Exchange

Author(s): Metta Kusumaningtyas, Anis Chariri and Etna Nur Afri Yuyetta

The purpose of this study is to empirically examine the effect of firm strategy on company financial performance by using CSR governance as a moderating variable. The variable measurement proxies used in this study to measure the firm strategy and financial performance are divided into short-term and long-term. The sample of this research consists of 36 all companies listed on the Indonesia Stock Exchange for 5 years of observation in 2015-2019, with total sample used were 360 data. Moderated Regression Analysis (MRA) is used to test the hypothesis with the results that short term-firm strategy having a positive effect on short termcompany financial performance. CSR governance has been shown strengthen the relationship between short them-firm strategy and short term-company financial performance. In contrast, long term-firm strategy does not affect long term-company financial performance. CSR governance does not strengthen the relationship between long them-firm strategy and long termcompany financial performance.

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