scholarly journals Leadership Style, Intellectual Capital and Corporate Social Responsibility on Performance, a Comparison Model of Listed Companies in Indonesia

Author(s):  
Rilla Gantino ◽  
Endang Ruswanti ◽  
Taufiqur Rachman

Objective – This paper aims to examine the influence of Leadership Style, Intellectual Capital, and Corporate Social Responsibility on Performance in companies in the sub-sectors of Mining, Pharmacy and Consumption and Household, Basic Industry, Chemical and Infrastructure, Utility and Telecommunication listed on Indonesia Stock Exchange (IDX) 2012-2018. Methodology/Technique – In this research, leadership style is measured transformationally and transactionally. Meanwhile, Intellectual Capital is measured using VAICTM. Furthermore, Corporate Social Responsibility is measured using GRI G4, and Financial Performance is proxied by ROA, ROE, and sales growth. The method used is a saturated sample. The sample in this research was 50 companies in the Basic and Chemical Industry sub-sector, 28 companies in the infrastructure, utilities, and telecommunications sub-sectors, 38 mining sub-sector companies, and 17 companies in the consumer goods sub-sector listed on the Indonesia Stock Exchange (IDX). This research used secondary data taken from financial and annual reports and primary data obtained through questionnaires for leadership style. The analysis method used is simple regression analysis. Findings & Novelty –The results show that the influence of leadership style, intellectual capital, and corporate social responsibility in the four sectors varies with a positive or negative relationship direction. Intellectual capital has a positive significant influence on ROA, ROE and SG in four sectors. Previous research has focused on only one sector. This study compares the influence of leadership style, intellectual capital, and corporate social responsibility in four sectors Type of Paper: Empirical. JEL Classification: M41, M49. Keywords: Comparison; Leadership Style; Intellectual Capital; CSR; Performance Reference to this paper should be made as follows: Gantino, R; Ruswanti, E; Rachman, T. 2020. Leadership Style, Intellectual Capital and Corporate Social Responsibility on Performance, a Comparison Model of Listed Companies in Indonesia., Acc. Fin. Review, 5 (3): 110 – 120. https://doi.org/10.35609/afr.2020.5.3(3)

Author(s):  
Rilla Gantino ◽  
Endang Ruswanti ◽  
Taufiqurrahman

Currently, the level of business competition is high that companies need to continuously innovate by utilizing knowledge base. High level of competition is driven by the economic policies of some countries. Singapore (since 2001) and Malaysia (since 2004), countries of southeast Asian region closest to Indonesia, talked about economic reform from labor-based to knowledge-based economy. To create competitive advantages, companies reduce the use of human resources by utilizing technology and information technology in the production to conduct their business activities. This encourages companies in Indonesia to transform so as not to lose out in competition. The company's sustainability will also depend on the loyalty of its consumers or customers. The company will do its utmost to strengthen consumer loyalty including efforts to get their positive value. Consumers who are satisfied with the product quality and CSR disclosure will increase the value of the company and they will be loyal to the company. Furthermore, the next issue is about management in achieving its goal of carrying out management functions at various levels. Leaders at different levels will empower their employees by implementing certain leadership styles. A leader is someone responsible for the work of others in achieving goals. The way leaders impress their subordinates to be cooperative and productive is called leadership style. Through leadership style a leader seeks to mobilize his subordinates to act according to the plan of achieving the company's goals. Leaders should be able to motivate employees to continuously innovate, and to improve employee competency in order to achieve the company's goals. Some researchers have conducted studies on the Influence of Leadership Style, Intellectual Capital, and Corporate Social Responsibility on Performance, and the results are mixed. The objective of this research is analyzing the comparative model of the influence of Leadership Style, Intellectual Capital, and Corporate Social Responsibility on Performance in companies in the sub-sectors of Mining, Pharmacy and Consumption and Household, Basic Industry, Chemical and Infrastructure, Utility and Telecommunication listed in Indonesia Stock Exchange (IDX) 2012-2018. Keywords: Comparability, Leadership Style, Intellectual Capital, CSR, Performance


2021 ◽  
Vol 7 (2) ◽  
pp. 1
Author(s):  
Vusumuzi Sibanda ◽  
Imelda Sekai Shoko ◽  
Ruramayi Tadu

Corporate Social Responsibility (CSR) has remained topical and contentious as various schools of thought are put forward on its relationship to cost versus profitability for businesses. This study explored the relevance of CSR and its effect on the survival of businesses during an economic meltdown in Zimbabwe. The study purposively sampled 31 companies that are listed on the Zimbabwe Stock Exchange and have sound CSR programmes. A total of 93 questionnaires were administered and a Chi-square was conducted to test and establish the relationship between CSR strategies and business survival. The study concluded that companies with CSR strategies had a higher chance of surviving during turbulent times. Following the findings of the study, it is recommended that government comes up with CSR policies for different industries and that organisations continue investing in CSR especially in times of economic challenges.


2019 ◽  
Vol 4 (1) ◽  
pp. 14
Author(s):  
Novia Eka Sariantono ◽  
Luh Putu Mahyuni

Do Good Corporate Governance and Corporate Social Responsibility Influence Profitability of LQ45 Listed Companies. This study aims to examine the influence of good corporate governance and corporate social responsibility on profitability of LQ45 listed companies in Indonesia Stock Exchange. The data analyzed were secondary data in the form of annual reports and sustainability report. The data were analyzed using multiple linear regression. The results of this research indicate: (1) Good corporate governance (GCG) has a significant effect on profitability of LQ45 listed companies; (2) Corporate social responsibility (CSR) does not have a significant effect on profitability of LQ45 listed companies. This research provides empirical evidence that implementation of GCG could influence profitability, while the implementation of CSR does not influence profitability. Keywords: Good corporate governance, corporate social responsibility, independent commissioner board, corporate social responsibility, disclosure index, return on equity


2019 ◽  
pp. 1365
Author(s):  
Made Cahyani Prastuti ◽  
I G.A.N. Budiasih

The aim of this research is to know the influence of corporate social responsibility and intellectual capital on financial performance. Theories used are stakeholder, legitimacy, and resource-based theory. This research conducted on trading companies listed on the Indonesia Stock Exchange in 2015-2017. The samples taken were 26 companies, by non-probability sampling method with purposive sampling technique. Data collected through non-participant observation. The analysis techniques used are descriptive statistical analysis, classical assumptions, and multiple linear analysis. Based on the analysis found that corporate social responsibility has no effect on financial performance. This indicates that the high and low disclosure of CSR will not affect the financial performance of the trade sector. The second hypothesis states that intellectual capital has a positive effect on financial performance. This indicates that the higher the intellectual capital, the higher the financial performance of the company. Combination of intellectual capital can enhance competitive advantage for companies. Keywords: Financial performance, corporate social responsibility, intellectual capital


2019 ◽  
pp. 510
Author(s):  
Kadek Novia Suastyani ◽  
I Gede Ary Wirajaya

 This study purpose to determine the effect of intellectual capital, corporate social responsibility disclosure on market performance. This research was conducted on banking companies listed on the Indonesia Stock Exchange in 2014-2016, namely as many as 43 companies. Samples were taken using non-probability sampling techniques with purposive sampling method. Obtained 23 companies with 69 total observations. The data analysis technique used is multiple linear regression analysis. The results of the analysis prove that companies that are able to process value added well will affect market performance. This study also found that the more items disclosure of CSR disclosure disclosed by the company will improve market performance. Keywords: intellectual capital, corporate social responsibility disclosure, market performance


2019 ◽  
Vol 28 (2) ◽  
pp. 1405
Author(s):  
Putu Nesy Swendriani ◽  
Luh Gede Krisna Dewi

This study aims to obtain empirical evidence of the effect of BOPO ratio, intellectual capital, and corporate social responsibility (CSR) disclosure on profitability of banking companies. Research conducted on banking companies on the Indonesia Stock Exchange (IDX) for the 2013-2017 period. The sample is determined through non probability sampling method with purposive sampling technique. The number of samples used in this study were 60 observation samples. The data analysis technique used is the analysis of multiple linear regression analysis. The results of this study indicate that BOPO ratio show a negative effect on profitability of banking companies. The results also show that intellectual capital and CSR disclosure doesn’t affect the probability of banking companies. The research implications theoretically prove stakeholder theory, legitimacy theory, and resource-based theory in explaining the operational efficiency of banking companies. Keywords: BOPO; intellectual capital; CSR; profitability.


2017 ◽  
Vol 2 (02) ◽  
Author(s):  
Rachmat Harisianto ◽  
Dewi Sutjahyani

ABSTRACTThis research was conducted to analyze the effect of Corporate Social Responsibility performance indicators Economic, Environmental, and Social on financial performance. This study was made to determine how the implementation of Corporate Social Responsibility Financial Performance. The method used in this research is quantitative method and the population is a company mining and agricultural sectors listed in Indonesia Stock Exchange in 2012-2014, using data analysis SEM (Structural Equation Modelling) by the application program PLS (Partial Least Square) version 3.2. 1. Results obtained indicate that Corporate Social Responsibility (CSR) of the three indicators Economic Performance (KE), Environmental Performance (KL), Social Performance (KS) to the company's financial performance and Agriculture Mining sector not significant coefficient -0317 parameter Corporate social yangberarti responsibility (CSR) to the financial performance had a negative relationship which means no direction opposite relationship. Keywords: Influence of Corporate Social Responsibility of the three indicators Economic Performance, Environmental, and Social the Financial Performance.


2016 ◽  
Vol 13 (2) ◽  
pp. 413-418
Author(s):  
Peter H. Makovere ◽  
Hlanganipai Ngirande

The study investigated the impact of Corporate Social Responsibility on Corporate Competitive Advantage on Zimbabwean listed companies. A stratified sample of 10 participants from 10 companies listed on Zimbabwe Stock Exchange was utilised to examine the influence of corporate social responsibility on competitive advantage during a period from 1 July 2012 to 30 June 2013. The study utilised a mixed method approach and data was analysed in the form of descriptive statistics. The results show a significant influence of corporate social responsibility on competitive edge on Zimbabwe stock exchange listed companies. Results also reveal that the degree to which social responsibility is emphasized can impact a firm’s credibility, ultimately influencing the ability to raise capital, retain effective and productive staff, bid for quality raw materials from reputable suppliers and even manage to secure relatively lucrative growth opportunities. All these collectively help entities build and sustain strong competitive edges against their fellow competitors


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