ABSTRACT
This research aims to analyze the cause–effect relationship between financial performance and corporate social performance, which refers to research conducted by Makni, Francoeur and Bellavance (2009). In addition, this study examines the influence of corporate governance, risk and firm size on financial performance and corporate social performance. The population of this research are all companies listed on the Indonesian Stock Exchange. The sample is chosen using a purposive sampling method. The total sample of the research is 19 companies registered in the Jakarta Islamic Index. The data analysis method used is a Granger causality and path analysis technique. Prior to hypotheses testing, a classic assumption test is performed. The results of the research found that corporate governance (board of commissioners and audit committee) and firm size influence social performance. Corporate governance (board of commissioners, independent board of commissioners and audit committee) and risk (debt to total assets ratio and debt to equity ratio) affect financial performance (return on assets). Corporate governance (board of commissioners and independent board of commissioners) affects financial performance (return on equity). Only social performance variables mediate the influence of corporate governance (board of commissioners) on financial performance (return on assets and return on equity).
