The Effect of Corporate Social Responsibility Disclosure on Financial Performance (Empirical Study on Manufacturing Companies Cement Sector in Indonesia)

Amirul, Bahar and Yusnaini, Yusnaini and Tertiarto, Wahyudi (2021) The Effect of Corporate Social Responsibility Disclosure on Financial Performance (Empirical Study on Manufacturing Companies Cement Sector in Indonesia). Econpaper, 2 (92). pp. 19-24. ISSN 2307-9878

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Abstract

Today whole society is concerned about the environment pollution and social problems that can be addressed, at least in part, by identifying, measuring, disclosure and assessing the interactions between business and the environment. Doing its business, the company has a responsibility not only to the owners of capital (stockholders), but also has responsibilities to the employees, suppliers, customers, government agencies and other stakeholders. So, the company must always balance the interests of profit with social responsibility. This study aims to analyze and provide empirical evidence about the effect of disclosure of Corporate Social Responsibility on the financial performance of cement sector companies in Indonesia with Good Corporate Governance as a control variable. Corporate Social Responsibility is measured using the 2016 Global Reporting Initiative G4 Corporate Social Responsibility index, while corporate financial performance is measured by Tobin's Q, Return on Assets, Return on Equity and Net Profit Margin. The object in this study is a sample of cement sector companies listed on the Indonesia Stock Exchange with a study time period of 2015-2019. The data used in this study are secondary data obtained through annual reports of public companies. The results showed that Corporate Social Responsibility has a positive effect on the financial performance of cement sector companies in Indonesia. Therefore, companies need to disclosure their performance in in environmental preservation. The community's need for social and environmental responsibility disclosure is a factor that causing a good performance enhancement effect to the cement industry in Indonesia.

Item Type:	Article
Uncontrolled Keywords:	corporate social responsibility; good corporate governance; return on asset; return on equity; net profit margin
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	01-Faculty of Economics > 62201-Accounting (S1)
Depositing User:	Dr. Yusnaini Yusnaini
Date Deposited:	30 Apr 2023 12:49
Last Modified:	30 Apr 2023 12:49
URI:	http://repository.unsri.ac.id/id/eprint/98460

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