Determinants of Sustainable Finance Mediated by Internal Corporate Governance in Basic and Chemical Industries Listed on the Indonesia Stock Exchange
List of Authors
Darmansyah , Iha Haryani Hatta, Kurnia Heriansyah
Keyword
sustainable finance, intellectual capital, financial structure, and corporate social responsibility, internal corporate governance
Abstract
The purpose of this study was to examine various variables influencing sustainable finance, mediated by internal corporate governance. The study was conducted in basic and chemical industry companies listed on the main board. This quantitative study employed causality. From a population of 17 companies, 15 companies met the criteria for the 2019-2023 period. Data were processed using smartPLS version 3.2.2. The results indicate that intellectual capital (CEE) can improve sustainable finance (ROA, ROE, and share price), financial structure can improve sustainable finance (ROA, and share price), corporate social responsibility can improve sustainable finance (ROA, ROE), internal corporate governance can improve sustainable finance (share price), intellectual capital and corporate social responsibility can improve internal corporate governance (ICG), and corporate social responsibility (CSR) can improve sustainable finance (share price) through internal corporate governance (ICG). While financial structure cannot improve sustainable finance (ROE), Corporate Social Responsibility cannot improve sustainable finance (share price), internal corporate governance cannot improve sustainable finance (ROA, ROE), financial structure cannot improve Internal Corporate Governance (ICG), Intellectual Capital cannot improve sustainable finance (ROA, ROE, share price) through Internal Corporate Governance (ICG), Financial Structure cannot improve sustainable finance (ROA, ROE, share price) through Internal Corporate Governance (ICG), Corporate Social Responsibility (CSR) cannot improve sustainable finance (ROA, ROE) through Internal Corporate Governance (ICG). The implication of this research is that sustainable finance is related to business strategy, so companies must be able to utilize physical assets and intangible assets optimally. The use of an optimal financial structure and attention to the community in the form of corporate social responsibility funds, accompanied by the existence of internal corporate governance as a business controller plays an important role in the company's business continuity.