Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability

DOI

10.2991/miceb-17.2018.33How to use a DOI?

Keywords

corporate social responsibility; firm value; leverage; profitability

Abstract

Corporate Social Responsibility (CSR) is a strategic investment that brings many economic benefits for the company in the long term. Many benefits obtained by the company with the implementation of CSR, among other products increasingly favored by consumers and companies interested investors. CSR can be used as a new marketing tool for the company, if it is implemented continuously. Therefore, CSR plays an important role in increasing the value of the company as a result of increased sales of the company by conducting various social activities in the surrounding environment. This paper investigates the effects of Corporate Social Responsibility Disclosure (CSRD) and Leverage on Firm Value with Profitability as Moderating Variable. Analysis tool used in this study is the Moderated Regression Analysis (MRA) and Multiple Linear Regression analysis. There were 68 firm-years of Indonesia listed companies with CSR reports from 2012 to 2015. The paper found that leverage influences the firm value. However, CSRD did not affect the firm value. In addition, profitability as moderating variable was proven and capable of strengthening the relationship between corporate social responsibilities with firm value and strengthens the relations between leverage with firm value. The findings have important implications for practitioners with respect to CSR disclosure in addressing firm value.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Irwansyah Irwansyah
AU  - Yoremia Lestari Ginting
AU  - Anisa Kusumawardani
AU  - Juspita Erdiyanti
PY  - 2017/10
DA  - 2017/10
TI  - Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability
BT  - Proceedings of the Mulawarman International Conference on Economics and Business (MICEB 2017)
PB  - Atlantis Press
SP  - 213
EP  - 218
SN  - 2352-5428
UR  - https://doi.org/10.2991/miceb-17.2018.33
DO  - 10.2991/miceb-17.2018.33
ID  - Irwansyah2017/10
ER  -