Environmental, Corporate Social Responsibility, Governance, and Sales Growth Effects on Financial Performance

Abstract

Electronic Financial performance is an analysis conducted by the company to assess the extent to which a company has implemented using financial implementation rules properly and correctly. Financial performance can be described as a form of success of company management in managing company finances. Financial performance can be used as a guideline for taking decisions to be carried out by external parties and can be used in assessing the company’s financial performance.This study aims to find empirical evidence and analyze the effect of environmental performance, corporate social responsibility, governance, and sales growth on the company’s financial performance (study on the LQ45 index 2017-2021). The sampling method used was the purposive sampling method and obtained 15 companies with a total sample of 75 financial statements that were the object of research. The data analysis method is in the form of quantitative analysis using multiple linear regression analysis and hypothesis testing using the SPSS 25 program with a significance level of 0.05. The test results show that environmental performance has a negative and significant impact on financial performance. Corporate social responsibility and Sales Growth have a positive and significant effect on financial performance, while good corporate governance has a negative and insignificant effect on the company’s financial performance.