The Influence Of Corporate Social Responsibility On Firm Value Through Corporate Reputation And Financial Performance (original) (raw)
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Cognizance Journal , 2023
The bottom line and the value of the company to its shareholders are always top priorities for every business. However, most businesses realize how crucial it is to their survival, and as a result, they follow the principles of sustainable development to plan for the future. The firms are socially responsible because they follow an industry norm for self-regulation in business. Components of CSR allow a company to establish norms for how it will conduct business and how it will relate to the communities in which it operates. Despite the fact that CSR is legally required only for companies engaged in natural resource-related operations, most big organizations have already adopted CSR principles. This is due to the fact that they are reaping the monetary rewards of CSR. Researchers looked at how CSR's most notable features affected companies' bottom lines. This study used quantitative research methods (Content Analysis) it includes firms that are traded on the Indonesian Stock Exchange (IDX). The level of the company's financial success served as the dependent variable in this study, while the company's reputation, corporate strategy, stakeholder's concerns, and political ties served as the independent factors. It was suggested that by having a strategic approach to corporate social responsibility (CSR), businesses may boost their bottom line while also strengthening their relationships with government.
Jurnal Manajemen
Today's company competition in Indonesia is getting tighter and more competitive. The company is an organization that has a specific purpose in running its business, every company wants to be able to meet the welfare and interests of its members and shareholders. This activity is known as Social Responsibility. Corporate social responsibility (CSR) emerged as an idea, companies are no longer faced with responsibilities that are based on a single bottom line, namely the value of the company which is reflected in its financial condition only. But the company's responsibility must rest on the triple bottom line, where the bottom line apart from finance is also social and environmental, because financial conditions alone are not enough to guarantee the company's value grows in a sustainable manner. The purpose of this study was to identify the effect of corporate social responsibility (CSR) disclosure on firm value with financial performance as a moderating variable. Data c...
Impact of Corporate Social Responsibility on Company Performance
Atestasi : Jurnal Ilmiah Akuntansi
The primary aim of this research is to evaluate the impact of Corporate Social Responsibility (CSR) on the financial performance of organizations. The evaluation of the financial performance of the company is carried out by employing key indicators such as Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS). In the current study, Corporate Social Responsibility (CSR) is considered an exogenous variable, whereas Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS) are viewed as endogenous factors. The study's sample consisted of manufacturing enterprises publicly listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The material was acquired through documentary research methods and an extensive examination of pertinent literature. The researchers utilized a purposive sampling methodology to choose the sample for the study, wherein each period encompassed a total of 41 organizations. The data underwent multivariate regression an...
The Impact of Corporate Social Responsibility on Firm Financial Performance
2016
This paper aims to investigate the relationship among corporate social responsibility (CSR), corporate image & trust, customer satisfaction, competitive advantage, and firm financial performance. A questionnaire survey method was used to collect data. The hypotheses were developed from the existing literatures. Principal component analysis (PCA), confirmatory factor analysis (CFA), and structural path analysis were applied to analyze data and testing hypotheses. According to the findings, better corporate image & trust, satisfaction of customer, and competitive advantage are consequences of CSR practices. Again, better firm performance is associated with corporate image & trust, satisfaction of customer, and the competitive advantage of a firm. Corporate image & trust, customer satisfaction, and competitive advantage are mediators in the relationship between CSR and firm financial performance. Therefore, the findings will enhance the knowledge of Bangladeshi firms' managers abou...
Proceedings of the 1st International Conference on Science, Health, Economics, Education and Technology (ICoSHEET 2019), 2020
This study aims to analyze and explain the effect of Corporate Social Responsibility (CSR) on firm value, CSR on financial performance, and financial performance as a mediator of the effect of CSR on firm value. Data collection method used in this study is documentation of annual report and Indonesia Capital Market Directory (ICMD) issued by the company. The sampling method using purposive sampling method obtained 23 companies as the final sample. The data analysis used was path analysis. The population of this study is all mining companies listed in Indonesia Stock Exchange over the period 2013-2016. The results show that CSR does not affect on financial performance that measured by return on asset (ROA), CSR affects the financial performance that measured by Return on Sales (ROS), CSR has an effect on firm value that measured by Tobin's Q, financial performance that measured by ROA as a mediator of the effect of CSR on firm value, ROS does not mediate the effect of CSR on firm value.
The rising importance of CSR over the last few decades has stirred the interest of academia and corporate on the subject. CSR attracted attention in the Indian context with the implementation of the Companies Bill, 2013, which mandated firms to invest 2 per cent of their net profits in social activities. The linkages between CSR and profitability using factors such as corporate reputation, competition intensity, and advertising have been tested in the developed countries. These linkages have sparsely been tested in emerging economies such as India, which motivated me to conduct this study. Neville et al. (2005) proposed a theoretical model integrating stakeholders, and internal and external factors influencing the CSR-FP relationship. This study modified and used Neville's et al. (2005) model to test the proposed linkage in the Indian context. Structural Equation Modeling revealed a significant relationship between CSR Intensity and corporate reputation; significant role of social initiative and corporate strategy fit in enhancing the corporate reputation of a firm; and a significant role of advertising and promotion in enhancing corporate reputation. Other variables such as competitive intensity, supplier power, customer power and employee power were found to have no significant role on the proposed relationships.
International Journal of Advances in Scientific Research and Engineering (ijasre), 2019
This study aims to analyze the effect of CSR on financial performance, analyze CSR and financial performance of corporate value, analyze the impact of the financial performance of company value, and analyze the impact of CSR on company value through financial performance. The research design uses explanatory research, which tests the causality between variables through hypotheses that test the influence, relationships or effects of exogenous variables on endogenous variables. The samples in this study were 29 LQ 45 companies. The analysis technique used as many as path analysis. The analysis shows that CSR affects financial performance, which means that the greater the value of CSR issued by the company will be able to benefit the company and improve the quality of the company's financial performance. CSR affects the value of the company, which means that the implementation of CSR directs the effect on the company's value. Financial performance affects the value of the company, this proves that the magnitude of the value of financial performance and relevant information becomes a consideration in making investment decisions in the stock market affect the value of the company. Financial performance mediates the effect of CSR on corporate value, this proves that companies doing CSR can increase company value if financial performance increases.
2020
Corporate Social Responsibility (CSR) has become one of the policies that the Indonesian Government uses to persuade companies to deal with various social problems. The Indonesian government has realized that this traditional mindset is supposed to have very important practical importance in the banking industry and has already stipulated a new regulation to change the local industry into a more modern mindset This paper tackles the question on whether or not CSR should be forcefully implemented in Indonesian banks. Data from eight (8) banks, between 2013 and 2015, were gathered in order to see how CSR affects the Financial Performance (FP) in the Banking Sector in Indonesia. The analyzed data of FP consist of Return on Asset (ROA), Return on Equity (ROE), and Earnings per share (EPS). A new indicator called Corporate Social Disclosure Index (CSDI) is introduced to measure CSR activity. A bivariate analysis strategy is used to determine the significance level and correlation between...
Corporate Social Responsibility, Profitability and Firm Value: Evidence from Indonesia
The Journal of Asian Finance, Economics and Business, 2020
The intention of this research is to identify the effect of corporate social responsibility (CSR) disclosure on firm value with profitability as a moderating variable. Data collection is carried out with data documentation that is based on financial reports and sustainability reports. All companies listed on the Indonesia Stock Exchange (IDX) during the 2013-2017 period are considered as the population of this study. Samples were selected using the purposive sampling method. The following are criteria that would be used in this study: 1) publish a sustainability report using the GRI G4 standard as a reference in preparing reports for 2013-2016, 2) publish a complete financial report for the 2014-2017 observation period, 3) not experience a loss during the 2014-2017 period. The total sample of the study was 109 companies. The study uses path analysis assisted with WarpPLS software version 6.0. The results show that the disclosure of corporate social responsibility has a positive and significant effect on firm value, and profitability moderates the effect of corporate social responsibility disclosure on firm value. The implication of the research is that implementing corporate social responsibility is very important to increase firm's value and firm's sustainability in the future.
European Journal of Business and Management Research
This study aims to analyze the effect of corporate social responsibility (CSR) on financial performance, which is proxied by the ratios of return on assets (ROA), return on equity (ROE), and net profit margin (NPM). This study examined thirty populations of food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2016–2021. The sampling technique used was a non-probability sampling technique using purposive sampling, so that of the thirty listed companies, six companies met the sampling criteria. To analyze the data, simple linear regression analysis was used using SPSS 23 software. The results showed that: (1) corporate social responsibility has a positive and significant effect on return on assets; (2) corporate social responsibility has a positive and significant effect on return on equity; and (3) corporate social responsibility has no significant effect on net profit margin.