Assesing the Financial Performance: in Perspective Environmental Performance, CSR, GCG, and Leverage

Abstract

The company has a goal to generate maximum profit. However, the dry season in 2019 used by them to carried out "land clearing" of the forest to make profits in a bad way. This is conseptual research and qualitative research that aims to analyze the influence between variables. This research analyzes the effect of Environmental Performance, Corporate Social Responsibility (CSR), Good Corporate Governance (GCG) as a non-financial aspect and Leverage as financial aspect on Financial Performance. This research is designed by qualitative research with theoretical reviews as the main method. The authors conducted a systematic review of the articles that were identified from international and national business journals published between 2014 and 2019. There is three basic theory about agency theory, stakeholder theory, and trade-off theory as the foundation for reviewing some previous research. By the classifying the result found some propositions: 1) The good of environmental performance affect positive financial performance, 2) The higher disclosure of Corporate Social Responsibility affects the financial performance to be good, 3) The good implementation of Good Corporate Governance can make the financial performance to be good and, 4) The good ratio of Leverage will affect positively the financial performance