The Effect of Firm Sizes on Firm Performance with Gcg Mechanism and Csr Disclosure as Intervening Variables

Abstract

The research is to know are there any impact of firm size to GCG mechanism, CSR disclosure and firm performance. and are there any impact of firm size, GCG mechanism, and CSR disclosure to firm perfomance. And this research is aim to proof GCG mechanism and CSR disclosure can be mediated the impact of firm size to firm performance. This research using questionnaire data for hypothesis testing and using Structural Equation Modelling (SEM) to find out the impact of firm performance through GCG mechanism and CSR disclosure as a mediation variable. The result of the empirical study proof that reward, trust, job satisfaction, and knowledge sharing predispose employee performance. The result also proof that reward, trust, and job satisfaction predispose the employee performance. And the research proof that reward does not affect employee performance indirectly through knowledge sharing, while trust predisposes employee performance through knowledge sharing, and job satisfaction does not affect employee performance through knowledge sharing indirectly. Therefore, the firm should intensify reward, trust, and job satisfaction which build a good knowledge-sharing activity to intensify employee performance. The research applies institutional theory to propose the relationship of firm performance to firm performance and the mediation effect of GCG mechanism and CSR disclosure.