The Effect of Good Corporate Governance and Financial Characteristics on Company Performance with Sustainability Reporting as a Moderator for Public Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.61492/g08jf926Keywords:
Good Corporate Governance, Financial Characteristics, Corporate Performance, Stakeholder Theory, Sustainability ReportingAbstract
This study aims to analyze the influence of Good Corporate Governance (GCG) and financial characteristics on the performance of public companies in Indonesia, as well as to test the role of sustainability reporting as a moderating variable. Using an explanatory research approach, this study sampled 65 companies listed on the Indonesia Stock Exchange (IDX) during the 2018–2020 period, resulting in a total of 195 panel data observations. Data analysis was conducted using Partial Least Squares (PLS) based Structural Equation Modeling (SEM). The results indicate that GCG and financial characteristics proxied by liquidity and firm size have a positive and significant impact on firm performance. Sustainability reporting was also found to have a significant influence on performance and was proven to moderate the relationship between GCG and firm performance by strengthening transparency and accountability. However, the research results indicate that sustainability reporting does not moderate the relationship between financial characteristics and firm performance, suggesting that the strength of a firm’s economic conditions exerts a more dominant direct impact. These findings contribute theoretically to Stakeholder Theory by integrating non-financial aspects into performance evaluation models. Practically, the integration of strong governance and sustainability disclosures is key to maintaining reputation and investor confidence in the Indonesian capital market.
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Copyright (c) 2026 Christina Verawaty Situmorang, Sukrisno Agoes (Author)
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