Financial Performance and Sustainability Orientation: A Comparative Analysis of Family-Controlled (ICBP) vs. Multinational Firms (UNVR) in Indonesia

Themy Sabri Syuhada, Herbert Siregar

Abstract

Emerging markets are characterized by a unique dualism where large local conglomerates compete directly with global subsidiaries amidst economic volatility and increasing environmental, social, and governance (ESG) demands. This study aims to investigate how distinct ownership structures influence corporate strategy by comparing a major family-controlled enterprise and a multinational subsidiary in the Indonesian consumer goods sector. Utilizing a descriptive comparative approach, we analyze the profitability, solvency, and automated text-mining results of sustainability disclosures from PT Indofood CBP Sukses Makmur Tbk. and PT Unilever Indonesia Tbk. for the fiscal year 2024. Grounded in Socioemotional Wealth and Agency Theory, the findings reveal a fundamental strategic divergence. The family-controlled firm demonstrates a highly conservative capital structure and prioritizes social legacy to ensure dynastic continuity and community integration. Conversely, the multinational entity maximizes equity returns through aggressive leverage and heavily emphasizes environmental standardization to maintain global legitimacy. Ultimately, the strategic differences between these entities reflect a deliberate trade-off between socioemotional preservation and principal-agent capital maximization, offering vital risk-assessment insights for investors and policymakers in developing economies.

Keywords: agency theory; capital structure; corporate governance; ESG disclosure; socioemotional wealth

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DOI: https://doi.org/10.20961/jkb.v30i2.113401

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