INDONESIAN JOURNAL OF SUSTAINABILITY
The missing link in the relationship of corporate social responsibility and firm value in Indonesia
Abstract
The inconsistency of research results on the relationship between Corporate Social The inconsistency of research results on the relationship between Corporate Social Responsibility and Firm Value indicates missing variables in the relationship. This study aims to test Profitability as a moderator and mediator that bridges CSR and Firm Value's relationship. his type of research is causal-comparative research. The population in this study includes companies manufacturing listed on the Indonesia Stock Exchange (IDX). Selection of the sample with the purposive sampling method. This research's total sample is 107 companies for three periods, so the total sample size is 107 companies x 3 periods 321 data. The analysis used is path analysis and test Moderated Regression Analysis (MRA). The results showed that CSR positive and significant effect on Profitability. On the other hand, CSR is a significantly negative effect on firm value. As measured by return on assets (ROA), Profitability has a significantly positive effect on firm value. CSR positive and significant effect on the firm value of the Company through Profitability. On the other hand, as measured by return on assets (ROA), Profitability proved unable to moderate the relationship between CSR with the firm's value.
References
Adhitya, R., Suhadak, Nuzula, N. F. (2016). Pengaruh Corporate Social Responsibility (CSR) dan Probabilitas Terhadap Nilai Perusahaan. Jurnal Administrasi Bisnis (JAB). Vol 3( 1) : 66-72.
Agustina, Silvia. (2013). Pengaruh Profitabilitas Dan Pengungkapan Corporate Social Responsibility Terhadap Nilai Perusahaan (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia). Jurnal Akuntansi Universitas Negeri Padang, Vol. 1, No. 1
Agustine, Ira. (2014). Pengaruh Corporate Social Responsibility Terhadap Nilai Perusahaan. Jurnal Finesta, Vol. 2 No. 1 Hal. 42-47
Ahmed, S.U., Islam, M.Z., dan Hasan, I. (2012). Corporate Social Responsibility and Financial Performance Linkage Evidence from the Banking Sektor of Bangladesh. Journal of Organizational Management. Vol: 1. No. 1. pp. 14-22.
Aiken, L.S.; West, S.G. Multiple regression: Testing and interpreting interaction. Eval. Pract. 1991, 14, 167–168.
Bardos, K.S.; Ertugrul, M.; Gao, L.S. Corporate social responsibility, product-market perception, and firm value. J. Corp. Finance. 2020, 62, 101588.
Buchanan, B.; Cao, C.X.; Chen, C. Corporate social responsibility, firm value, and influential institutional ownership. J. Corp. Finance. 2018, 52, 73–95.
Chon, M.L.; Kim, C.S. (2011). The effect of sustaining corporate social responsibility on the relationship between CSR and financial performance. Korea Account. Inf. Res. Korea Account. Inf. Assoc. 29, 351–374.
Chune Young Chung. (2018). 1,*, Sangjun Jung 1 and Jason Young 2 Do CSR Activities Increase Firm Value? Evidence from the Korean Market. Sustainability, 10, 3164; doi:10.3390/su10093164
Diamond, D. dan Verrecchia, R. (1991). Disclosure, Liquidity and The Cost of Capital. Journal of Finance, 46(4), 1325–1359.
Ding, D.K.; Ferreira, C.; Wongchoti, U. Does it pay to be different? Relative CSR and its impact on firm value. Int. Rev. Financ. Anal. 2016, 47, 86–98.
Fama, E.F.; Jensen, M.C. Separation of ownership and control. J. Law Econ. 1983, 26, 301–325. [Google Scholar] [CrossRef]
Fishman, M. J., and K. M. Hagerty. 1989. Disclosure decisions by firms and competition for price efficiency. The Journal of Finance 44 (3): 633–646.
Gelb, D., and Zarowin. P. (2002). Corporate Disclosure Policy and the Informativeness of Stock Prices. Review of Accounting Studies 7, 33-52
Godfrey, P.C.; Merrill, C.B.; Hansen, J.M. The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategy. Manag. J. 2009, 30, 425–445. [Google Scholar] [CrossRef]
Güler Aras, (2010). "Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 59(3), pages 229-254, March.
Gunawan, Yovani dan Mayangsari, Sekar. (2015). Pengaruh Sustainability Reporting Terhadap Nilai Perusahaan dengan Investment Opportunity Set Sebagai Variabel Moderating. e-Journal Akuntansi Trisakti, Volume. 2 Nomor. 1 Februari 2015
Habel, J.; Schons, L.M.; Alavi, S.; Wieseke, J. (2016). Warm glow or extra charge? The ambivalent effect of corporate social responsibility activities on customers’ perceived price fairness. J. Mark. 80, 84–105. [Google Scholar] [CrossRef]
Hair, J.F.; Black, W.C.; Babin, B.J.; Anderson, R.E.; Tatham, R.L. Multivariate Data Analysis, 5th ed.; Prentice-Hall: Upper Saddle River, NJ, USA, 1998.
Hassan Hafez. 2016. Corporate social responsibility and firm value: an empirical study of an emerging economy. December 2016. Journal of Governance and Regulation (print) 5(4). DOI: 10.22495/jgr_v5_i4_p3
Healy, P. dan Palepu, K. (1993). The Effect of Firms’ Financial Disclosure. Strategies on Stock Prices. Accounting Horizons, 7(1), 1–11.
Hotman Tohir Pohan; Ice Nasyrah Noor; Yudha Fatrya Bhakti. (2019). Pengaruh Profitabilitas Dan Pengungkapan Corporate Social Responsibility Terhadap Nilai Perusahaan Dengan Ukuran Perusahaan Sebagai Variabel Moderasi. Jurnal Akuntansi Trisakti 5(1):41. DOI: 10.25105/jat.v5i1.4850
Article Statistic
Abstract view : 414 timesPDF views : 278 times
How To Cite This :
Refbacks
- There are currently no refbacks.
