THE EFFECT OF CHANGES IN INTELLECTUAL CAPITAL, CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE, AND GOOD CORPORATE GOVERNANCE ON COMPANY PERFORMANCE

Abstract

This study aims to analyze the effect of Changes in Intellectual Capital, Corporate Social Responsibility (CSR) Disclosure, and Good Corporate Governance on The Performance of Banking Subsector Companies Listed on The Indonesia Stock Exchange (IDX) during 2019 – 2023. Changes IC were measured using natural logarithm transformation (LN_MVAIC) to address heteroskedasticity. The research sample was determined through purposive sampling of banks listed on IDX, with secondary data obtained from annual and sustainability reports. The analysis employed multiple linear regression. The results show that LN_MVAIC and the Board of Directors have a positive and significant effect on firm performance, while CSR Disclosure, Independent Commissioners, Institutional Ownership, and Managerial Ownership are not significant. Simultaneously, all independent variables significantly influence firm performance. This study highlights the importance of managing intellectual capital and the strategic role of the board of directors in supporting profitability. For future research, it is suggested to include variables such as firm size and leverage to obtain more comprehensive results.