Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia

Bagas Ardhi Yoga Satria () and Tri Gunarsih ()

Asian Management and Business Review, 2023, vol. 3, issue 2, 155-166

Abstract: The causality and bi-causality between corporate social responsibility and firm financial success are examined in this study. Companies listed on the Indonesia Stock Exchange for the years 2018 through 2021 make up the study's population. The sampling method utilized is the purposive sampling method, which involves selecting samples based on criteria. 62 companies made up the sample. The Granger’s causality test is the causality test that is employed. The findings revealed that: 1) Corporate social responsibility has a positive impact on financial performance as measured by price to book value and earnings per share. 2) Price to book value and earnings per share, which are financial performance indicators, have a positive impact on corporate social responsibility. 3) There is a correlation between corporate social responsibility and financial performance, as measured by price to book value and earnings per share, which is bi-causal (two-way causality) and positive in direction.

Keywords: Corporate social responsibility; Financial performance; Bi-causality; Granger's causality (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journal.uii.ac.id/AMBR/article/view/29979 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uii:jrambr:v:3:y:2023:i:2:p:155-166:id:29979

Access Statistics for this article

More articles in Asian Management and Business Review from Master of Management, Department of Management, Faculty of Business and Economics Universitas Islam Indonesia
Bibliographic data for series maintained by Ana Yuliani ().