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Journal : Interdisciplinary Social Studies

The Impact of Operational Efficiency, Dividend Policy, and Corporate Sustainability On Financial Performance Juergen Klinsman Daniel Simanjuntak; Rolyana Ferinia; Judith Tagal Gallena Sinaga
Interdisciplinary Social Studies Vol. 4 No. 3 (2025): Regular Issue: April-June 2025
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/iss.v4i3.822

Abstract

In contemporary business practice, companies have become increasingly aware of the need to enhance financial performance to provide optimal dividends to investors while simultaneously managing operational costs and demonstrating environmental responsibility through corporate sustainability reports. This study aims to examine the extent to which operational efficiency, dividend policy, and corporate sustainability influence the financial performance of firms. Employing a quantitative research design with a correlational approach, data were analysed using SPSS. Secondary data were collected from 63 companies listed on the Indonesia Stock Exchange (IDX) that report Environmental, Social, and Governance (ESG) scores, alongside their annual reports for the year 2023. The findings indicate that: 1) Operational efficiency does not have a significant effect on financial performance; 2) Dividend policy exerts a positive and significant impact on financial performance; 3) Corporate sustainability does not significantly influence financial performance; and 4) Collectively, operational efficiency, dividend policy, and corporate sustainability significantly affect financial performance. This research focuses on publicly listed companies in Indonesia with ESG scores, highlighting their commitment to environmental, social, and governance factors while concurrently pursuing profitability.
Co-Authors A. Hendriks Aby Gayel Adhi Prasetio Adila, Adila Albert Christiawan Alfrits Reky Sambur Alvyn Hendriks Andre Alan Df Napitu Aneska Caesar Simbolon Angela Sabatini Lappra Anggi Sinta Dermawan Arif Indrianta Arif Partono Prasetio Ayuhelfia Maylinda B. D. Nainggolan B.D Nainggolan Barutu, Parsaoran Bernard Maruli Hutabarat Celine Winona Duha Dadan Wahyu Daniel Ataupah Daniel Siswanto Devon Shawa Situmorang Dwi Andrianta Ebenezer, Esmeraldo Ediman Jonson Manurung Edwin Gorat Esmeraldo Ebenezer Feri Dolf Djami Hae Grace Orlyn Sitompul Hanna Hutapea Hasibuan, Remista Hesky A. Wauran Hesky Wauran Hutabarat, Bernard Maruli Hutagalung, Stimpson HUTAGAOL, ALEXS SUDIBYO Jamot Yusevender Bin Manganji Peter Janes Sinaga Janes Sinaga Janes Sinaga Jean Jr., C.Venus Lurekke Jhon Rinendy Jhoni Lagun Siang Jimmy Allen Sakul Judith Tagal Gallena Sinaga Juergen Klinsman Daniel Simanjuntak Juita Lusiana Sinambela Juita Lusiana Sinambela Kingston Pandiangan Laverin Imelda Girsang Lenita Waty Lorina Siregar Sudjiman Marge Ardiangres Beis Marthinus Ismail matthew woran ramlen Max Lucky Tinenti Maxlucky Tinenti Meidy Lieke Karundeng Meidy Tatengkeng Melpin Sihotang Molsen Siburian Monica Presillia Gultom Nainggolan, Bartolomeus Diaz Napitupulu, Tri Yohana Nelly Grasella Simanjuntak Novika Frialestari Harianja Nubatonis, Thimotius Orlando Yudistira Polman sinaga Putri Paulina N Parhusip Raden Deddy Kurniawan Raden Deddy Kurniawan Rafles P. Sabbat Raja Adams Ratuwalangon, Rocky Richard Jimmy Irawan Rimon Jonas Simanjuntak Rocky Ratuwalangon Rosmawati, Patricia Rudolf Weindra Sagala Sagala, Rudolf Sandy Hasudungan Tambunan Saul Situmeang Sembiring, Niken Karina Simatupang, Michael Sabato sinaga, janes Sinaga, Japolman Sinambela, Juita Lusiana Sirait, Samuel Lambok Situmeang, Melinda Sharon Stepanuston Pelawi Stimpson Hutagalung Stimson Hutagalung Supendi Supendi Valentine Siagian Vellynda Sharon Theresia William Sitorus Zico Bangkit Pakpahan