Impact of Financial Performance and CSR Disclosures on Consumer Goods Industry Companies

Aminah (), Djoko Suhardjanto, Rahmawati Rahmawati and Jaka Winarna
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Aminah: Universitas Bandar Lampung, Economics and Business Faculty
Djoko Suhardjanto: Universitas Sebelas Maret, Economics and Business Faculty
Rahmawati Rahmawati: Universitas Sebelas Maret, Economics and Business Faculty
Jaka Winarna: Universitas Sebelas Maret, Economics and Business Faculty

A chapter in Proceedings of the International Colloquium on Business and Economics (ICBE 2022), 2022, pp 37-44 from Springer

Abstract: Abstract This paper aim to examine the influence of financial performance and disclosure of corporate social responsibility on the market value of consumer goods manufacturing companies listed on the Indonesia Stock Exchange in 2019–2020. The investigation utilizes secondary data extracted from annual financial statements. This study employs a sample of 50 companies that was selected purposively. By employing multiple linear regression model, the test results demonstrate a significantly positive relationship between financial performance as a proxy for return on assets (ROA) and firm value (Tobins Q). These results indicate that the company’s capability to generalize assets into profits has a positive impact on the company’s market value. Other findings indicate that corporate social responsibility as proxied by the global reporting initiative (GRI) index has a positive and statistically significant influence on company value, implying that disclosure of social responsibility investments has contributed to the enhancement of business reputation. This study can serve as a practical resource for business actors seeking to maximize corporate value by improving financial performance and disclosing social responsibility initiatives.

Keywords: Profitability; Corporate Social Responsibility; Company Value (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-066-4_5

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DOI: 10.2991/978-94-6463-066-4_5

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