Disclosure Of Sustainable Finance In Indonesian Banking From Institutional Theory Perspective
DOI:
https://doi.org/10.32528/issh.v2i3.345Keywords:
Corporate social responsibility, corporate governance, financial performance, institutional theory.Abstract
This study focuses on the objective of revealing the implementation of Corporate Social Responsibility (CSR) and its implications for financial performance strengthened by corporate governance in the Indonesian banking sector from 2017-2021. CSR is measured by social and environmental performance, financial performance is measured by return on assets and CG is measured by the board of directors. The research approach uses a quantitative approach using secondary data, namely annual financial reports, annual reports and published bank sustainability performance. The study population consists of 43 banks listed on the Indonesia Stock Exchange. The analytical tool used is Partial Least Square (PLS). The results show that CSR has a positive effect on bank financial performance and corporate governance strengthens the influence of CSR on financial performance. This study fills the gap in research on CSR disclosure and implementation on financial perfor-mance, especially in the Indonesian banking industry.
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