The Performance of the Financial Sector During the Covid-19 Pandemic

Abstract

The financial report of a company reveals how successfully it is competing and operating its business. The financial report serves as a guide for management in terms of making decisions that will help the company enhance its performance. The purpose of this study is to examine the effects of intellectual capital and enterprise risk management on the financial performance of businesses, with corporate governance serving as a moderating factor. The annual reports of 91 financial sector companies listed on the Indonesia Stock Exchange were analysed in this study. The data is based on a fouryear period, from 2016 to 2020. Panel data regression and moderated regression analysis were used in this study, which was conducted using Eviews statistical software. The findings indicate that intellectual capital has a negative effect on financial performance. Meanwhile, enterprise risk management was found to have no effect on financial performance. In addition, the findings show that corporate governance represented by independent commissioners can moderate the negative effect of intellectual capital on financial performance and institutional ownership has a moderating effect on intellectual capital and enterprise risk management on financial performance. The research indicates that corporations should increase their intellectual capital and risk management disclosure, as well as aiming for great corporate governance.

Legal Support of Financial Activity of Socio-Economic Systems

“…A document reflecting the content of the financial policy of the enterprise, contains forecast indicators of the volume of activities, the financial condition of the enterprise, and indicates sources of financing acceptable to the enterprise. In accordance with the essence of financial management decisions, financial policy consists of financial strategy and tactics [17][18][19][20].…”

Evaluating the Intellectual Capital of Intensively Tourism-Dependent Countries Between, Prior, and During the COVID-19 Pandemic

“…Moreover, to deeply perceive the impact of IC on the financial performance of specific businesses, some works examined IC contributions in the perspective of industrial types. However, the studied areas are still very limited in only four industries, which are banking [9,22,23], tourism [5,6,24], telecommunication [13], and manufacturing sectors [22].…”

The Influence of Foreign Ownership, Environmental Certification, Board of Commissioners, Women Directors on Corporate Social Responsibility Disclosure

“…As defined, foreign investors are those who have their citizenship or primary residence outside of the country. Foreign investors consider the ownership structures of the companies they invest in to be advantageous for managing issues and well-protected from outsiders (Savitri et al, 2022). Foreign share ownership is one of the parties that are thought to be interested in reporting corporate social responsibility and is also one of the channels via which businesses earn legitimacy from the public in the corporate environment (Yani & Suputra, 2020).…”

“…Foreign share ownership is one of the parties that are thought to be interested in reporting corporate social responsibility and is also one of the channels via which businesses earn legitimacy from the public in the corporate environment (Yani & Suputra, 2020). The sustainability of a business depends on its capacity to manage its finances, which also results in revenue that demonstrates the accomplishment of the organization's objectives (Savitri et al, 2022). According to Setiawan et al (2021), the advent of numerous international investors, as well as local and multinational investment experiences, exhibit success with investors and work trust in social responsibility disclosure.…”