CSR as a Moderation: Improving Financial Performance Through Green Investments and Good Corporate Governance

Abstrak

This research is intended to determine the effect caused by green investment and good corporate governance on financial performance, moderated by CSR, in the manufacturing industry on the IDX in the period 2021-2023. The selection of the sample was conducted through a purposive sampling technique. The research method used was Moderated Regression Analysis and multiple linear regression on SPSS version 30. The result of the research confirmed that Green Investment and independent commissioners cannot maximize financial performance, while directors can maximize the improvement of financial performance. The existence of CSR disclosure can further optimize the role of Green Investment and directors in terms of maximizing financial performance. Otherwise, CSR disclosure weakens independent commissioners in achieving financial performance. These findings provide guidance to the manufacturing industry that the green transition requires a more comprehensive approach than simply allocating funds to environmental programs. Furthermore, regarding governance, manufacturing companies need to focus more on strengthening the capacity of their directors to manage sustainability and ensuring that independent commissioners have relevant industry expertise.