Research Paper
Year: 2020 | Month: May | Volume: 7 | Issue: 5 | Pages: 310-319
The Effect of Corporate Social Responsibility (CSR) on Corporate Value with Profitability as Intervening (Case Study Company in Sri Kehati Index Listed in BEI 2009 - 2018)
Betharia Simanjuntak1, Isfenti Sadalia2, Iskandar Muda3
1,2,3Master of Management Universitas Sumatera Utara, Indonesia
Corresponding Author: Betharia Simanjuntak
ABSTRACT
Sri Kehati index is a stock index in Indonesia that uses CSR (corporate social responsibility) as one of its main assessment components, and the performance of the Sri Kehati index exceeds the performance of the LQ 45 and IHSG indexes, this reflects CSR disclosure being an important matter for companies that go public. CSR is one of the research variables that is often associated with the creation of good company value, but to find out whether the company is considered by investors there are other variables such as the level of profitability of the company, this is very interesting to know the relationship between the three. CSR disclosure uses the disclosure method using GRI-G4 (Global Reporting Initiative), for corporate value disclosure using Tobin's Q. approach. The study was conducted on companies listed on the Sri Kehati index and listed on the Indonesia Stock Exchange from 2009 to 2018. Samples were 10 (ten) companies with secondary data in the form of annual reports obtained from the Indonesian Stock Exchange or the company's website. The study uses Panel Data Regression Analysis techniques to test hypotheses in research with the help of eviews application. The results of the study note that the disclosure of the value of CSR has a significant positive effect on firm value but positively not significantly on company profitability (in this case ROA). ROA has a significant positive effect on firm value, and as an intervening variable ROA strengthens the relationship of CSR value disclosure to firm value.
Keywords: CSR, ROA, Corporate Value, Eviews, Panel Data Regression.
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