Corporate Governance Boosts Financial Performance in Indonesia, Social Responsibility Lags
The study looked at how corporate governance, social responsibility, and financial performance are connected in Indonesian companies. They used data from annual reports of companies in the Indonesia Institute for Corporate Governance from 2014 to 2016. The results showed that good corporate governance is linked to better financial performance. Corporate governance also influences social responsibility, but social responsibility doesn't directly impact financial performance. The government may make corporate governance regulations mandatory in the future.