Articles

Why Do Firms Apply Non-Market Strategies? Does it Really Pay?

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The purpose of this study is to provide a better understanding to non-market strategies of the firms, their external and internal drivers and whether firms attain gains from these strategies in practice by examining the selected existing studies on firms’ non-market strategies. The vast literature on non-market strategies shows that companies’ support in the political process of overcoming societal troubles and their collaboration with non-profit organizations increase. However, companies do not engage in non-market strategies with a pure altruism, contrarily they expect to reap benefits. The empirical studies on the relationship between non-market strategies and financial performance that are examined within the scope of this study indicate differentiating results. Based on these inconsistent findings of the present studies, the implications and directions for future studies are presented.

Earning Management of Corporate Social Responsibility Mediation and Corporate Governance on Financial Performance (An Empirical Study on Idx Mining Corporates 2016-2020)

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This study aims to examine and analyze corporate social responsibility and corporate governance on financial performance and, through earning management as a mediating variable. Financial performance is the dependent variable which is proxied by ROA and MVA. The independent variables in this study were corporate social responsibility as proxied by 91 GRI 4.0 indicators and corporate governance as proxied by independent commissioners and institutional ownership. Earning management as a mediating variable proxied by discretionary accruals. This study uses a sample of 35 mining companies listed on the Indonesia Stock Exchange from 2016 to 2020. The data used in this study is secondary data analyzed using a multiple linear regression analysis path models with the help of SPSS 25 software, and corporate governance has a positive and significant effect on financial performance. Meanwhile, earning management has a negative and significant effect on financial performance. Corporate social responsibility has a positive and significant effect on earning management, while corporate governance has a negative and significant effect on earning management. Earning management mediates full corporate social responsibility on financial performance, while the board of commissioners partially mediates on financial performance.