The Effect Of Green Financing, Corporate Social Responsibility and Cost Efficiency On The Profitability Of Manufacturing Companies In Indonesia: The Role Of Good Corporate Governance As A Moderation Variable

Authors

  • Yunita Syiah Kuala University, Indonesia
  • Said Musnadi Syiah Kuala University, Indonesia
  • A Sakir Syiah Kuala University, Indonesia

DOI:

https://doi.org/10.58818/ijems.v5i4.355

Keywords:

Green Financing, Corporate Social Responsibility, Cost Efficiency

Abstract

This study aims to examine the Green Financing, Corporate Social Responsibility (CSR), and Cost Efficiency impact on Profitability, with Good Corporate Governance (GCG) as the moderator. This uses a Linear Regression and Moderated Regression Analysis. The population is the manufacturing companies listed on the IDX for the 2020-2024. Partial testing shows that CSR and cost efficiency affect profitability, while green financing does not have a significant influence. Simultaneous testing indicates that all variables significantly influence profitability. However, the test of variable moderation shows that GCG does not moderate the impact of green financing on profitability, but moderates the impact of CSR and cost efficiency on profitability significantly. This implies that strengthening CSR and achieving operational efficiency are key to driving increased company profitability, as reinforced by GCG. 

Downloads

Download data is not yet available.

References

Amanza, A. H. (2012). Analisis Faktor-Faktor Yang Mempengaruhi Praktik Perataan Laba (Income Smoothing) (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2006-2010). Universitas Diponegoro.

Asih, M., Saputra, H., & Saraswati, D. (2025). Analysis the Implementation of Activity Based Management in Improving Cost Efficiency at PT Adie Jaya Furindo in Medan. Internasional Journal of Integrative Sciences, 4(2), 407–418. https://doi.org/https://doi.org/10.55927/ijis.v4i2.3

Asyifa, N. I., & Endri. (2025). Green Finance, Environment Performance, and CSR on Financial Performance Industrial Sector in Indonesia: The Moderating Role of Good Corporate Governance. International Journal of Applied Management and Business, 3(2), 97–110. https://doi.org/https://doi.org/10.54099/ijamb.v3i2.1555

Bayunitri, B. I., Sihaloho, T. V., Sukma, I., & Lasniroha, T. (2024). The Influence of Good Corporate Governance (GCG) toward Financial Performance. Kompartemen: Jurnal Ilmiah Akuntansi, 22(1), 120–127. https://doi.org/https://doi.org/10.30595/kompartemen.v22i1.21259

Carroll, A. B. (2021). Corporate Social Responsibility: Perspectives on the CSR Construct’s Development and Future. Business and Society, 60(6), 1258–1278. https://doi.org/10.1177/00076503211001765

Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. Journal of Law and Economics, 26, 1–32. https://doi.org/http://dx.doi.org/10.2139/ssrn.94034

Fernando, S., & Lawrence, S. (2014). A Theoretical Framework for CSR Practices: Integrating Legitimacy Theory, Stakeholder Theory and Institutional Theory. Journal of Theoretical Accounting Research, 10, 149–178.

Friyanto, & Haritsar, Y. (2024). Influence of Green Banking and Financial Performance Implementation to Profitability Levels in Conventional Banking Financial Companies Listed On the Indonesian Stock Exchange Period 2020. Journal of Business Management and Economic Development, 2(1), 311–322. https://doi.org/https://doi.org/10.59653/jbmed.v2i01.499

Amanza, A. H. (2012). Analisis Faktor-Faktor Yang Mempengaruhi Praktik Perataan Laba (Income Smoothing) (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2006-2010). Universitas Diponegoro.

Asih, M., Saputra, H., & Saraswati, D. (2025). Analysis the Implementation of Activity Based Management in Improving Cost Efficiency at PT Adie Jaya Furindo in Medan. Internasional Journal of Integrative Sciences, 4(2), 407–418. https://doi.org/https://doi.org/10.55927/ijis.v4i2.3 DOI: https://doi.org/10.55927/ijis.v4i2.3

Asyifa, N. I., & Endri. (2025). Green Finance, Environment Performance, and CSR on Financial Performance Industrial Sector in Indonesia: The Moderating Role of Good Corporate Governance. International Journal of Applied Management and Business, 3(2), 97–110. https://doi.org/https://doi.org/10.54099/ijamb.v3i2.1555 DOI: https://doi.org/10.54099/ijamb.v3i2.1555

Bayunitri, B. I., Sihaloho, T. V., Sukma, I., & Lasniroha, T. (2024). The Influence of Good Corporate Governance (GCG) toward Financial Performance. Kompartemen: Jurnal Ilmiah Akuntansi, 22(1), 120–127. https://doi.org/https://doi.org/10.30595/kompartemen.v22i1.21259 DOI: https://doi.org/10.30595/kompartemen.v22i1.21259

Carroll, A. B. (2021). Corporate Social Responsibility: Perspectives on the CSR Construct’s Development and Future. Business and Society, 60(6), 1258–1278. https://doi.org/10.1177/00076503211001765 DOI: https://doi.org/10.1177/00076503211001765

Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. Journal of Law and Economics, 26, 1–32. https://doi.org/http://dx.doi.org/10.2139/ssrn.94034 DOI: https://doi.org/10.1086/467037

Fernando, S., & Lawrence, S. (2014). A Theoretical Framework for CSR Practices: Integrating Legitimacy Theory, Stakeholder Theory and Institutional Theory. Journal of Theoretical Accounting Research, 10, 149–178.

Friyanto, & Haritsar, Y. (2024). Influence of Green Banking and Financial Performance Implementation to Profitability Levels in Conventional Banking Financial Companies Listed On the Indonesian Stock Exchange Period 2020. Journal of Business Management and Economic Development, 2(1), 311–322. https://doi.org/https://doi.org/10.59653/jbmed.v2i01.499 DOI: https://doi.org/10.59653/jbmed.v2i01.499

Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25 (9th ed.). Badan Penerbit Universitas Diponegoro.

Ghozali, I., & Chariri, A. (2014). Teori Akuntansi International Financial Reporting System (IFRS). Badan Penerbit Universitas Diponegoro.

Hasanah, N., & Hariyono, S. (2022). Analisis Implementasi Green Financing Dan Kinerja Keuangan Terhadap Propitabilitas Perbankan Umum Di Indonesia. Jurnal Ekobis: Ekonomi Bisnis Dan Manajemen, 12(1), 149–157. https://doi.org/https://doi.org/10.37932/j.e.v12i1.444 DOI: https://doi.org/10.37932/j.e.v12i1.444

Hoque, A., Le, D. T., & Le, T. (2024). What Drives Banks to Provide Green Loans? Corporate Governance and Ownership Structure Perspectives of Vietnamese Listed Banks. Risks, 12(9), 146. https://doi.org/https://doi.org/10.3390/risks12090146 DOI: https://doi.org/10.3390/risks12090146

Hudiyono, R. F., & Safitri, D. (2022). Analisis Program Pengembangan Usaha Mikro, Kecil, Dan Menengah (UMKM) Oleh PT Lima Pondasi Bersama. Vocational Education Program, 4(2), 83–91. https://doi.org/DOI: 10.7454/jabt.v4i2.1026 DOI: https://doi.org/10.7454/jabt.v4i2.1026

Jatmiko, B. (2025). Operational Efficiency, Capital Adequacy, and Profitability: A Case Study of Central Java’s Regional Development Bank. BALANCE: Jurnal Akuntansi Dan Manajemen, 4(1), 137–148. https://doi.org/https://doi.org/10.59086/jam.v4i1.661 DOI: https://doi.org/10.59086/jam.v4i1.661

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X DOI: https://doi.org/10.1016/0304-405X(76)90026-X

Liu, S., Shen, X., Jiang, T., & Failler, P. (2021). Impacts of the financialization of manufacturing enterprises on total factor productivity: empirical examination from China’s listed companies. Green Finance, 3(1), 59–89. https://doi.org/10.3934/GF.2021005 DOI: https://doi.org/10.3934/GF.2021005

Mardhiah, A., & Risman, A. (2026). Moderating Role of Good Corporate Governance in the Effects of Green Finance, Leverage, and Profitability on Firm Value. Asian Journal of Applied Business and Management, 5(1), 227–246. https://doi.org/10.55927/ajabm.v5i1.16 DOI: https://doi.org/10.55927/ajabm.v5i1.16

Moerdianto, R. (2024). Pengaruh Aset Tak Berwujud, Biaya Penelitian dan Pengembangan, dan Investasi Teknologi Modern dalam Hubungan antara Profitabilitas dan Nilai Perusahaan = The Effect of Intangible Assets, Research and Development Costs, and Modern Technology Investment on. Universitas Hasanuddin.

Mowen, M. M., Hansen, D. R., & Heitger, D. L. (2022). Managerial Accounting: The Cornerstone of Business Decision-Making. Cengage Learning.

Mulyadi. (2023). Sistem Akuntansi (4th ed.). Salemba Empat. DOI: https://doi.org/10.31294/reputasi.v4i2.2494

Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Tobing, C. E. R. L. (2021). Penelitian bisnis, teknik dan analisa dengan SPSS-STATA-Eviews. Madenatera.

Nguyen, H. (2023). Credit Risk and Financial Performance of Commercial Banks: Evidence from Vietnam. Papers 2304.08217, 1–49. https://doi.org/10.48550/arXiv.2304.08217

Nguyen, H. P. T., Tran, N. M., & Pham, V. M. (2023). The impact of size on income diversification: an empirical study on commercial banks in Vietnam. Future Business Journal, 9(1), 91. https://doi.org/https://doi.org/10.1186/s43093-023-00273-6 DOI: https://doi.org/10.1186/s43093-023-00273-6

Nurjanah, S., Wijaya, S. N., Komara, A., & Mahadianto, M. Y. (2025). Financial Performance Evaluation: The Role of ROA and ROE in Increase Company Value. International Journal of Business, Economics and Social Development, 5(2), 264–270. https://doi.org/https://doi.org/10.46336/ijbesd.v6i2.916 DOI: https://doi.org/10.46336/ijbesd.v6i2.916

OECD. (1999). OECD Principles of Corporate Governance. https://doi.org/http://dx.doi.org/10.2139/ssrn.174229 DOI: https://doi.org/10.2139/ssrn.174229

OECD. (2017). Investing in Climate, Investing in Growth. https://doi.org/http://dx.doi.org/10.1787/9789264273528-en DOI: https://doi.org/10.1787/9789264273528-en

Rustiarini, N. W. (2010). Pengaruh Corporate Governance Pada Hubungan Corporate Social Responsibility Dan Nilai Perusahaan. Simposium Nasional Akuntansi XIII, 1–24.

Saqib, Z. A., & Qin, L. (2024). Investigating Effects of Digital Innovations on Sustainable Operations of Logistics: An Empirical Study. Sustainability, 16(13), 5518. https://doi.org/https://doi.org/10.3390/su16135518 DOI: https://doi.org/10.3390/su16135518

Shakil, M. H. (2021). Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity. Resources Policy, 72, 102144. https://doi.org/https://doi.org/10.1016/j.resourpol.2021.102144 DOI: https://doi.org/10.1016/j.resourpol.2021.102144

Sharma, M., & Choubey, A. (2021). Green banking initiatives: a qualitative study on Indian banking sector. Environment Development and Sustainability, 24(1), 293–319. https://doi.org/10.1007/s10668-021-01426-9 DOI: https://doi.org/10.1007/s10668-021-01426-9

Solikhah, B., & Winarsih, A. M. (2016). Pengaruh Liputan Media, Kepekaan Industri, Dan Struktur Tata Kelola Perusahaan Terhadap Kualitas Pengungkapan Lingkungan. Jurnal Akuntansi Dan Keuangan Indonesia, 13(1), 1–22. https://doi.org/10.21002/jaki.2016.01 DOI: https://doi.org/10.21002/jaki.2016.01

Supatminingsih, S., & Wicaksono, M. (2020). Pengaruh Good Corporate Governance, Ukuran Perusahaan Dan Intelectual Capital Terhadap Manajemen Laba Pada Perusahaan Manufaktur yang Terdaftar di BEI. Edunomika, 4(1), 114–125. https://doi.org/https://doi.org/10.29040/jie.v4i01.768 DOI: https://doi.org/10.29040/jie.v4i01.768

Vionika, D., & Handayani, M. (2025). The Effect of Green Accounting, Corporate Social Responsibility, and Good Corporate Governance on Profitability. Research Horizon, 5(4), 1731–1742. https://doi.org/10.54518/rh.5.4.2025.783 DOI: https://doi.org/10.54518/rh.5.4.2025.783

Wang, Z., Shahid, M. S., An, N. B., Shahzad, M., & Abdul-Samad, Z. (2022). Does green finance facilitate firms in achieving corporate social responsibility goals? Economic Research-Ekonomska Istraživanja, 35(1), 5400–5419. https://doi.org/https://doi.org/10.1080/1331677X.2022.2027259 DOI: https://doi.org/10.1080/1331677X.2022.2027259

Xu, H., Mei, Q., Shahzad, F., Liu, S., Long, X., & Zhang, J. (2020). Untangling the Impact of Green Finance on the Enterprise Green Performance: A Meta-Analytic Approach. Sustainability, 12(21), 9085. https://doi.org/https://doi.org/10.3390/su12219085 DOI: https://doi.org/10.3390/su12219085

Downloads

Published

2026-07-19

How to Cite

Yunita, Musnadi, S., & A Sakir. (2026). The Effect Of Green Financing, Corporate Social Responsibility and Cost Efficiency On The Profitability Of Manufacturing Companies In Indonesia: The Role Of Good Corporate Governance As A Moderation Variable. The International Journal of Education Management and Sociology, 5(4), 183–197. https://doi.org/10.58818/ijems.v5i4.355

Issue

Vol. 5 No. 4 (2026): July - August : The International Journal of Education Management and Sociology

Section

Articles

Categories

License

Copyright (c) 2026 Yunita, Said Musnadi, A Sakir (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright and License Statement

Authors who publish their manuscripts in this Journal agree to the following conditions:

The copyright for any article in The International Journal of Education Management and Sociology (IJEMS) is fully held by the author under a Creative Commons CC BY 4.0 license:

  1. The author acknowledges The International Journal of Education Management and Sociology (IJEMS) has the right to publish for the first time with a Creative Commons Attribution 4.0 International License / CC BY 4.0.
  2. Authors can enter writings separately, arrange non-exclusive distribution of manuscripts that have been published in this journal into other versions (eg sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time in The International Journal of Education Management and Sociology (IJEMS)
Licence :
  • The International Journal of Education Management and Sociology (IJEMS) published under the terms of a Creative Commons Attribution 4.0 International License / CC BY 4.0. This license permits anyone to copy and redistribute this material in any form or format, compose, modify, and make derivative works of this material for any purpose, including commercial purposes, so long as they include credit to the Author of the original work.