The effect of social responsibility and managerial ability on firm value-mediated profitability

Ory Wiranudirja, Ubud Salim and Nur Khusniyah Indrawati
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Ory Wiranudirja: University of Brawijaya
Ubud Salim: University of Brawijaya
Nur Khusniyah Indrawati: University of Brawijaya

International Journal of Research in Business and Social Science (2147-4478), 2022, vol. 11, issue 6, 116-126

Abstract: The mining industry in Indonesia has a high enough capitalization value to attract investment. The more investors that invest, the higher the stock price and the value of the firm, yet the mining sector's share price has changed throughout time. The mining industry in Indonesia must likewise be mindful and worried about the environment. Previous research has not explored the correlation between profitability and firm value, which contributes as a mediator. This resulted in a clear gap in the literature. This study contributes to filling a gap in the literature. The mining sector businesses listed on the Indonesia Stock Exchange (IDX) from 2018 to 2020 were chosen as the population, with a total sample of 11 companies selected using the purposive selection approach. The data analysis process has been carried out using SPSS version 28 software. The study's findings revealed that corporate social responsibility and corporate management skills had little influence on business value. Furthermore, the findings of this research show that profitability, as a moderating variable in this study, is a complete mediator of social responsibility and managerial ability to firm value. The presence of profitability mediation in this research yields substantial findings, serving as a warning to investors. Key Words:Industry, Corporate Sustainability, Corporate Governance, Company Performance CSR, ESG, Profitability

Date: 2022
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Citations: View citations in EconPapers (2)

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