The Effect of Sales Growth, Asset Efficiency, and Capital Structure on Financial Performance with Corporate Social Responsibility as a Moderating Variable: A Study on Consumer Non-Cyclical Companies

Abstract

This study aims to analyze the effect of sales growth, asset efficiency, and capital structure on financial performance, with corporate social responsibility (CSR) as a moderating variable in consumer non-cyclical companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. The research population comprised all 131 companies in the consumer non-cyclical sector listed on the IDX. Through purposive sampling, a final sample of 15 companies was obtained, yielding 75 observations over the five-year period. Secondary data from annual financial and sustainability reports were collected using the documentation technique. Data were analyzed using panel data regression with the Fixed Effect Model (FEM) approach. The t-test results indicate that sales growth and asset efficiency have a significant positive effect on financial performance, while capital structure has a significant negative effect. Furthermore, the moderation analysis reveals that CSR disclosure significantly strengthens the positive impact of sales growth on financial performance but weakens the positive impact of asset efficiency on financial performance. However, CSR is unable to moderate the effect of capital structure on financial performance. The implications of this study emphasize that integrating CSR practices can serve as a strategic catalyst to optimize sales growth for sustainable financial performance.