Year: 2025 | Month: November | Volume: 12 | Issue: 11 | Pages: 464-479
DOI: https://doi.org/10.52403/ijrr.20251148
The Effect of Good Corporate Governance on Net Profit Margin with Corporate Social Responsibility as a Mediating Variable in Processed Food & Beverages Companies Listed on the Indonesia Stock Exchange in 2020-2023
Sri Handayani Limbong1, Iskandar Muda2, Isfenti Sadalia3
1Master of Accounting Student at University of Sumatera Utara
2Master of Accounting Lecturer at University of Sumatera Utara
3Master of Accounting Lecturer at University of Sumatera Utara
Corresponding Author: Sri Handayani Limbong
ABSTRACT
This study aims to examine and analyze the influence of the board of commissioners, audit committee, managerial ownership, and institutional ownership on financial performance, using net profit margin as a proxy, in food and beverage companies listed on the Indonesia Stock Exchange from 2020 to 2023, with corporate social responsibility as a mediator.
This type of research is quantitative descriptive study, with employed a purposive sampling technique. The sample size was 17 companies with 68 observations. The data were then processed using eViews version 12.
The results indicate that an independent board of commissioners (X1) has a positive but insignificant effect on net profit margin, the audit committee has a negative but insignificant effect on net profit margin, managerial ownership (X3) has a positive but insignificant effect on net profit margin, and institutional ownership (X4) has a significant and positive effect on net profit margin. Furthermore, corporate social responsibility is proven to be able to mediate the relationship between the independent board of commissioners (X1) and the audit committee (X2) on the company's net profit margin, but is not proven to be able to mediate the relationship between managerial ownership (X3), institutional ownership (X4) on the company's net profit margin.
Keywords: Independent board of commissioners, Audit committee, Managerial ownership, Institutional ownership, Net profit margin, Corporate social responsibility
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