The Participant Capacity Function Moderates the Disclosure of Financial Performance through Corporate Social Responsibility

Abstract

Researchers in this project are examining the relationship between corporate social responsibility (CSR) disclosure and financial performance. They are also exploring the potential impact of stakeholders on this relationship. The study utilized 487 observations from non-financial companies listed on the Indonesia Stock Exchange between 2018 and 2022. The findings indicate that companies that communicate information about their CSR initiatives more frequently tend to experience improved financial performance. Additionally, the study reveals a strong positive correlation between investor and customer satisfaction and the efficiency of a business's financial operations. However, there is only a weak correlation between creditor support and financial performance. Furthermore, the study has not yet proven that stakeholder influence strengthens the link between CSR disclosure and financial performance. The findings of this research are expected to contribute to the existing knowledge on stakeholder impact, financial performance, and CSR disclosure. This study can be used as a guide by practitioners to identify variables that can enhance economic performance, particularly through CSR initiatives.