Corporate Sustainability and Digitalization: Is It a Bank Performance
Boosters?

Corporate Sustainability and Digitalization: Is It a Bank Performance
Boosters?

Corporate Sustainability, Digitalization; Bank Performance; Sustainable Bank;
Digital Banking.

The company's financial performance remains a contemporary issue and is of concern to
stakeholders and investors. In terms of achieving the company's performance, the bank's management
will carefully consider management decision. Thus, determining the right strategy is one of the
important step to improving the financial performance of the corporate. Some of these strategies and
management decisions in nonfinacial area are to carry out digital transformation and implement the
Corporate Sustainability Program. A good company's financial performance is the proper and correct
implementation of the strategy and applicable rules. Corporate Sustainability (CS) and digitalization
have become important factors in this decade and their impact on banking financial performance. The
objective of this study is to examine Corporate Sustainability (CS) and digitalization as the factors that
can influence the bank’s financial performance. The population of this research is 47 banks listed on
IDX from 2013-2020. Then, The Sample selection was carried out by selecting banking companies that
issued sustainability reports and a final sample of 6 banks was obtained with 48 total observation for 8
years. The data source is secondary data obtained from the sustainability report and financial
statements of banks listed on the IDX and published in 2013-2020. The results showed that
digitalization significantly affects the bank’s financial performance. In contrast, corporate
sustainability does not significantly affect financial performance. This shows that in the long time
during the observation period, corporate sustainability activities did not work to improve banking
finance in Indonesia. The stakeholders are more concerned about other factors that can increase
banking company performance. This could also be because a banking company is more profit
oriented. They are reliant on financial factors other than sustainability

Indayani Indayani, Putri Zidni Ayu Meuthia, Rita Meutia Mail

https://jurnal.unmer.ac.id/index.php/jkdp/

Universitas Syiah Kuala

2023-06-20

Fajar Bagus W

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Indonesia

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