Agus Purwanto

Type of the article: Research Article

Abstract
This study examines the influence of governance, sustainability performance, and innovation on firm performance. The study employs a quantitative approach, utilizing panel data regression analysis, on manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2023. The data collection yielded 782 unbalanced panel datasets as the basis for the analysis. Data were collected through documentation in the form of financial and annual reports during the observation period. The results indicate that sustainability performance has a significant impact on the return on assets. The coefficient is 0.10105182 and is statistically significant at the 5% level. Innovation also affects the return on assets and gross profit margins. The coefficient is 0.02189183 and is statistically significant at the 1% level. The percentage of independent commissioners affects the gross profit margin. The coefficient is –0.01407224 and is statistically significant at the 1% level. No evidence suggests that governance, sustainability performance, or innovation affects return on equity. In general, sustainability performance and innovation are key predictors of a firm’s overall performance.