The Effect Of Credit Risk, Corporate Social Responsibility (CSR), Company Age And Quality Awards On Company Financial Performance
(Survey Of Financial Sector Companies Listed On The Indonesia Stock Exchange (IDX) In The Period 2020–2024)
Keywords:
credit risk, corporate social responsibility, firm age, quality awards
Abstract
The financial performance of companies in the financial sector is a key indicator of management effectiveness in managing resources and ensuring business sustainability, particularly during the period of economic uncertainty from 2020 to 2024. Financial performance is influenced by various factors, including credit risk, corporate social responsibility, firm characteristics, and reputation as reflected through quality awards. This study aims to analyze the effect of credit risk, corporate social responsibility (CSR), firm age, and quality awards on the financial performance of financial sector companies listed on the Indonesia Stock Exchange (IDX). This study employs a quantitative approach using panel data regression. The research sample was selected through purposive sampling of financial sector companies during the 2020–2024 period. Financial performance is proxied by Return on Assets (ROA), credit risk is measured using Loan Loss Provision (LLP), CSR is measured based on theInternational StandardsGRIsocial indicators, firm age is measured by the length of time the company has been established, and quality awards are measured by the number of awards received. The results indicate that credit risk and firm age have a negative and significant effect on financial performance, CSR has no significant effect, while quality awards have a positive and significant effect on financial performance. This study provides a theoretical contribution by enriching the literature on financial performance determinants in the financial sector and offers practical implications for management, investors, and regulators in strategic decision-making.References
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Zervoudi, E. K., Moschos, N., & Christopoulos, A. G. (2025). From the Corporate Social Responsibility (CSR) and the Environmental, Social and Governance (ESG) Criteria to the Greenwashing Phenomenon: A Comprehensive Literature Review About the Causes, Consequences and Solutions of the Phenomenon with Specific Case Studies. Sustainability, 17(5), 2222.https://doi.org/10.3390/su17052222
Zhang, J., & Liu, Z. (2023). The Impact of Corporate Social Responsibility on Financial Performance and Brand Value. Sustainability, 15(24), 16864.https://doi.org/10.3390/su152416864
Aji, SSB, & Castek, O. (2021). The Relationship Between CSR Disclosure and Company Profitability in Indonesia. Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020), 72–77.
Alfawaz, R., & Fathah, R.N. (2022). The effect of Corporate Social Responsibility disclosure on the financial performance of companies in the healthcare industry. Proceedings of the National Conference on Accounting & Finance, 513–521.
Alnabulsi, K., Kozarević, E., & Hakimi, A. (2023). Non-Performing Loans as a Driver of Banking Distress: A Systematic Literature Review. Commodities, 2(2), 111–130.https://doi.org/10.3390/commodities2020007
Amoa-Gyarteng, K., Coleman, J. A., & Eserifa, O.-E. (2025). Financial sustainability and credit risk: evidence from listed banks in Ghana. SN Business & Economics, 5(7), 93.https://doi.org/10.1007/s43546-025-00861-4
Anjani, RL, & Fitrijanti, T. (2025). The Effect of Credit Risk and Liquidity on the Financial Performance of Regional Development Banks with Good Corporate Governance as a Moderator. Musytari: Management Accounting Balance Sheet, Economics, 20(3).https://doi.org/10.8734/mnmae.v1i2.359
Asante, S., Sarpong, D., Aidoo, E., & Ogunsade, A.I. (2025). Advancing the common good through business excellence awards: A legitimacy‐seeking perspective. Strategic Change, 34(2), 225–235.https://doi.org/10.1002/jsc.2606
Atichasari, AS, Ratnasari, A., Kulsum, U., Kahpi, HS, Wulandari, SS, & Marfu, A. (2023). Examining non-performing loans on corporate financial sustainability: Evidence from Indonesia. Sustainable Futures, 6, 100137.https://doi.org/10.1016/j.sftr.2023.100137
Awa, H. O., Etim, W., & Ogbonda, E. (2024). Stakeholders, stakeholder theory and Corporate Social Responsibility (CSR). International Journal of Corporate Social Responsibility, 9(1), 11.https://doi.org/10.1186/s40991-024-00094-y
Bag, S., Srivastava, G., Gupta, S., Sivarajah, U., & Wilmot, N.V. (2024). The effect of corporate ethical responsibility on social and environmental performance: An empirical study. Industrial Marketing Management, 117, 356–370.https://doi.org/10.1016/j.indmarman.2024.01.016
Batekele, H.-LK, & Maseka, L. T. (2025). The Effect of Credit Risk Management on the Bank's Profitability: The Evidence from Commercial Banks in the Democratic Republic of the Congo. Open Journal of Business and Management, 13(03), 2143–2162.https://doi.org/10.4236/ojbm.2025.133111
Benali, W. (2025). Effects of CSR, company size, and company age on financial performance: firms listed on the Tunisian stock exchange. SN Business & Economics, 5(7), 80.https://doi.org/10.1007/s43546-025-00851-6
Gafsi, N. (2025). Machine Learning Approaches to Credit Risk: Comparative Evidence from Participation and Conventional Banks in the UK. Journal of Risk and Financial Management, 18(7), 345.https://doi.org/10.3390/jrfm18070345
Gopane, T. J. (2025). Policy implications of ESG-moderated credit risk on bank profitability. Green Finance, 7(3), 406–428.https://doi.org/10.3934/GF.2025015
Ghosh, K., & La Torre, M. (2025). Corporate social responsibility and family firm performance: A meta‐analytic review. Corporate Social Responsibility and Environmental Management, 32(2), 1412–1443.https://doi.org/10.1002/csr.3004
Meviani, RSA, & Syafruddin, M. (2024). The Impact of Social Responsibility on Financial Performance with Audit Quality as a Moderating Variable in Indonesia. Tax Accounting Applied Journal, 2(2), 41–57.https://doi.org/10.14710/taaij.2023.20389
Marschlich, S., & Hurtado, E. (2025). The effect of third-party certifications on corporate social responsibility communication authenticity and credibility. Corporate Communications: An International Journal, 30(7), 1–20.https://doi.org/10.1108/CCIJ-01-2024-0015
Meyer, K. E., & Tse, C. H. (2025). Organizational legitimacy as a core concept for theorizing on business in emerging economies. International Business Review, 34(4), 102447.https://doi.org/10.1016/j.ibusrev.2025.102447
Yousaf, M. (2025). Determinants of firm performance: How to choose the best model among panel data models? Central European Management Journal, 33(3), 504–521.https://doi.org/10.1108/CEMJ-05-2023-0229
Yassin, Y., & Beckmann, M. (2025). CSR and employee outcomes: a systematic literature review. Management Review Quarterly, 75(1), 595–641.https://doi.org/10.1007/s11301-023-00389-7
Zervoudi, E. K., Moschos, N., & Christopoulos, A. G. (2025). From the Corporate Social Responsibility (CSR) and the Environmental, Social and Governance (ESG) Criteria to the Greenwashing Phenomenon: A Comprehensive Literature Review About the Causes, Consequences and Solutions of the Phenomenon with Specific Case Studies. Sustainability, 17(5), 2222.https://doi.org/10.3390/su17052222
Zhang, J., & Liu, Z. (2023). The Impact of Corporate Social Responsibility on Financial Performance and Brand Value. Sustainability, 15(24), 16864.https://doi.org/10.3390/su152416864
Published
2026-06-03
How to Cite
Yusono, A. W., & Nengzih , N. (2026). The Effect Of Credit Risk, Corporate Social Responsibility (CSR), Company Age And Quality Awards On Company Financial Performance. Kontigensi : Jurnal Ilmiah Manajemen, 14(1), 47-75. https://doi.org/10.56457/jimk.v14i1.933
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Articles
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