The impact of corporate social responsibility disclosure and investment opportunity set on firm performance: evidence from the manufacturing sector

This study investigates the combined influence of Corporate Social Responsibility Disclosure (CSRD) and Investment Opportunity Set (IOS) on Firm Performance, measured using Market Value Added (MVA), in manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2023. Utilizing Legitimacy and Signal Theories as frameworks, the research emphasizes the critical role of CSRD and IOS in enhancing corporate transparency, fostering stakeholder trust, and signaling growth potential to investors. The analysis, based on a sample of 144 companies with 346 observations, employs STATA software for data processing and multiple regression techniques to demonstrate that both CSRD and IOS have a significant positive impact on Firm Performance. CSRD reflects corporate accountability towards economic, social, and environmental dimensions, while IOS signals strategic foresight in leveraging future growth opportunities. The findings align with prior research, highlighting the importance of these variables in improving financial outcomes and market valuation. Additionally, the study underscores the practical implications for managers and investors, advocating for optimized CSRD practices and strategic investment planning to enhance corporate value and stakeholder confidence. This research contributes to the literature by addressing a gap in the combined effects of CSRD and IOS on Firm Performance within the Indonesian manufacturing sector. The study also provides a foundation for future research to explore additional sectors, extended observation periods, and broader variables influencing corporate success