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Journal : JDM (Jurnal Dinamika Manajemen)

The Value Relevance of Non-Financial Information to Firm Profitability: an Empirical Study on the Hypercompetitive Industry Usman, Berto; Afandy, Chairil; Kamaludin, Kamaludin
JDM (Jurnal Dinamika Manajemen) Vol 13, No 2 (2022): September 2022
Publisher : Department of Management, Faculty of Economics and Business, Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jdm.v13i2.34473

Abstract

The purpose of this study is to examine the relationship between non-financial information and firm profitability. The data and samples were extracted from publicly listed companies (PLCs) operating in the U.S. hypercompetitive industry. The U.S. (NYSE) setting of the study was chosen due to the efficiency of its capital market. The efficiency of the NYSE can be identified from the rapid adjustment of stock price movement as a consequence of incoming new information. By employing panel data regression analysis of 83 companies spanning from 2011 to 2016 (498 firm-year observations), this study tests the relevance of firms’ non-financial on firm profitability. The findings suggest that non-financial information has shown a positive and relevant association with firm profitability. Thus, the presence of CSR reports (CSR_Rep), and high CSR performance scores (CSR_Perf) as the proxies of non-financial information is positively associated with firms’ profitability (ROA and ROE). In this regard, the company might explore the benefit of gaining a positive reputation and better business legitimacy from society as well as their stakeholders.
Co-Authors . Darmansyah ., H.M. Chiar Agustina Ekaputri, Retno Ahmad Nahrowi Akram Harmoni Wiardi Alesa, Nelly Amelia, Aas Anwar, Miftahul Apriansyah, Syahrud Ariatpi, Fina Arief Rijaluddin Aziza, Nurna Badriyah Badriyah, Badriyah Berto Usman, Berto Burhanudin Burhanudin Chairil Afandy Dantika, Fina Azizah Deri, Rahmi Rismayani Dessy, Dessy Dewi Rahmayanti Dian Dian Dianti, Salma Ratna Divianto Divianto Endang Endang, Endang Evendi, Erpin Fatwanah, Fatwanah Fauzi, Erpan Fauziah, Siti Nur Indah Firdaus, M. Azis Firmansyah, Rendy Rizkyta Fitranita, Vika Fitri Santi Fridian, Sonny Agus Gunawan Gunawan Harisudin, Mohamad Harry Triana Heru Irianto Hijroini, Hijroini Himmah Taulany Hoirunnisa Apriyanti Husaini⁴, Husaini⁴ Indriani, Rini Irianto, Kurniawan Budi Irpan Ilmi Jahudin, Andi Aswad Jata, Anak Agung Gede Darma Joko Sutrisno Julir, Nenan Kankarofi, Rabiu H. Kurnianto, Egi Kurniati Karim Latif, Latif Lenny Marlina, Lenny Lestari, Ikhlazia Indah Linda Ika Mayasari, Linda Ika Listyasari, Winda Dewi Lutfia, Lutfia Syafrudin Marvin, Marvin Masduki Ahmad Midiastuty, Pratana Puspa Muhammad Afif Nabawiyah, Habsatun Nikmah Nikmah Nupusiah, Ulpah Nurhattati Nurlaelatul, Neneng Pardi, Husnial Permana, Maya Raeimona Prasetijo , Joewono Predi Supriadi Putra Hani Pitriyani Putra, Mukti Trio Rahayu, Azi Juliar Rahmi Maulida Rajagukguk, Handyka Oktra Ramadhan, Nabil Auliya Ramanda, Aprilia Robiansyah, Anton Runiasih, Mawar Sahro Wardi Saiful Saiful Sari, Nirwana Nilam Sidiq, Fahmi Siti Zulaikha Situmorang, Marika Slamet . Sri Mulyati Sunarto, Ading Suranta, Eddy Suthia Hayu, Rina Syahrum Agung Takdir, Muh. Taqiyya, Hana Teti Desyani Triana, Harry Tupan Tupan Wahyudi . Yarmunida, Miti Yayat Hidayat Zoraya, Intan