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Journal : Dinasti International Journal of Economics, Finance

Integrating Green and Inclusive Practices for Financial Performance: Evidence from Indonesia Listed Consumer Firms (2019-2023) Ardiana, Elvetta Zada; Majidah, Majidah
Dinasti International Journal of Economics, Finance & Accounting Vol. 6 No. 5 (2025): Dinasti International Journal of Economics, Finance & Accounting (November - De
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v6i5.5148

Abstract

Financial performance is the work achievement attained by a company within a specific period. Companies that consistently generate profits are companies with good financial performance. However, the financial performance of companies in the primary consumer goods sector in 2019-2023 fluctuated, as seen from the average Return on Capital Employed. Therefore, this study aims to analyze factors that can improve financial performance, including using Green Accounting, Quality Management System, Gender Diversity, and Circular Economy. The object of this study is primary consumer goods companies listed on the IDX in 2019-2023. Using purposive sampling, a sample of 52 companies or 260 observation data was obtained. The research data was analyzed using panel data regression. The results showed that only gender diversity had a negative effect on financial performance.
Sustainable Business Transformation: Impact of ESG, Green Innovation, and Internal Factors on Corporate Financial Performance Amelia, Dahlia; Majidah, Majidah
Dinasti International Journal of Economics, Finance & Accounting Vol. 6 No. 5 (2025): Dinasti International Journal of Economics, Finance & Accounting (November - De
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v6i5.5149

Abstract

The company's goal as a business entity is to generate optimal profits in order to provide value to its stakeholders. Achieving this goal reflects the company's performance. The purpose of this study is to determine the effect of environmental, social, and governance (ESG) disclosure, company size, leverage, green innovation, and human resource slack on the company's financial performance in the energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2024 period. With purposive sampling, a sample of 42 companies or 210 observational data was obtained. The research data were analyzed using panel data regression through Eviews 13. The results showed that environmental, social, and governance (ESG) disclosure had a positive effect on the company's financial performance. The results of this study are also findings for the energy sector on the IDX and the novelty of this study is in measuring financial performance using the burn rate. These results can be considered by investors in making investment decisions in this sector.
The Impact of Corporate Financial Performance on Greenwashing Propensity: An Analysis of Fortune 100 Firms in Indonesia Azzuhdi, Muhammad Alif Farras; Majidah, Majidah
Dinasti International Journal of Economics, Finance & Accounting Vol. 6 No. 5 (2025): Dinasti International Journal of Economics, Finance & Accounting (November - De
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v6i5.5154

Abstract

This study aims at analyzing the influence of corporate financial performance on the tendency to engage in greenwashing among companies listed in the Fortune 100 Indonesia. Greenwashing is corporate practices that misleadingly portray an environmentally friendly image without substantive actions. Such actions are usually reflected in the company's  financial performance, namely: Profit Margin (PM), Return on Assets (ROA), and Debt to Equity Ratio (DER).  The research employs logistic regression analysis using secondary data from financial reports and sustainability reports of 41 Fortune 100 Indonesia companies from 2020 to 2023. The results indicate that increases in Profit Margin and Return on Assets significantly influence the propensity of companies engaging in greenwashing, while inclining in Debt-to-Equity Ratio does not. These findings suggest that companies with improved financial performance are more likely to practice greenwashing to maintain a positive image without allocating sufficient resources tor sustainability efforts. This study contributes to academic literature by strengthening empirical evidence on the relationship between financial performance and greenwashing. Additionally, the findings can serve as a reference for investors, regulators, and the public in identifying greenwashing practices and promoting corporate transparency and accountability in sustainability reporting.