HERSUGONDO, Hersugondo (2024) "Artikel Dr. HERSUGONDO, SE, MM: The Role of Financial Slack as a Mediating Variable between Corporate Governance’s Effect on Company Performance ". International Journal of Social Science and Business, 8 (2). pp. 259-273.

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Abstract

Amid the backdrop of the global pandemic, the economic sector has witnessed a
profound transformation, with one of its notable consequences being the
disruption of businesses, particularly in their struggle to access external
resources. In this dynamically altered landscape, the imperative role of
corporate governance practices within company management becomes
pronounced. These practices are pivotal in orchestrating the efficient allocation
and utilization of internal resources, evolving from a mere survival strategy to a
competitive advantage, thereby bolstering overall company performance and
ensuring sustained viability in the fiercely competitive modern business arena.
The type of research used is descriptive research, and the research design
employed is longitudinal design. The data that used for this research is 588 data
from 98 listed manufacturing companies on the IDX from 2015 – 2020. All data
is obtained from company financial reports and also from Bloomberg. Using
multiple linear regression analysis and path analysis with SPSS version 25, the
results showed that the company's internal resources (slack) could not mediate
the relationship between corporate governance and company performance. This
shows that company management has not been able to maximize the use of the
company's internal resources (slack) in order to improve company performance.
The results of this study can be used as input for company management to be
able to maximize or use the company's internal resources (slack) properly in
order to help the company improve its performance, because all decisions
regarding the use of company resources are in the hands of company
management.

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