The Effect Of Corporate Social Responsibility, Gender Diversity, And Intellectual Capital On Financial Distress

Yogi Nur Rahmadani, Ary Yunanto, Ekaningtyas Widiastuti, Solikhin Solikhin

Abstract


This study aims to examine the effect of Corporate Social Responsibility, Gender Diversity, Intellectual Capital on Financial Distress. The research sample amounted to 19 consumer cyclical companies listed on the Indonesian stock exchange from 2021-2023 which were selected using purposive sampling technique with a total of 57 observations. This study uses multiple regression data analysis techniques. The dependent variable in this study is financial distress, the independent variables are Corporate Social Responsibility, Gender Diversity, and Intellectual Capital. The results showed that Corporate Social Responsibility has a negative effect on Financial Distress. Meanwhile, Gender Diversity and Intellectual Capital have a positive effect on Financial Distress. This shows that the company should. This study shows that consumer cyclical companies need to increase CSR disclosure according to Global Reporting Initiative (GRI) guidelines because high CSR disclosure can reduce the level of financial distress, increase community legitimacy, and attract shareholders to invest. In addition, the importance of paying attention to gender diversity in the board of directors is also raised, although gender diversity has not been proven effective in dealing with financial distress, it can improve management performance through inclusive recruitment and empowerment of board members. Finally, this study emphasizes the need for effective intellectual capital management to avoid increasing production costs and debt, which can trigger financial distress.

Keywords: Corporate Social Responbility, Gender Diversity, Intellectual Capital, Financial Distress


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References


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