Profitability, Corporate Social Responsibility Disclosure, and Corporate Value of Non-Cyclicals Listed in Indonesia

Authors

  • Clifeld Jeremias Joram Unsulangi Indonesia Banking School
  • Lediana Sufina Indonesia Banking School

DOI:

https://doi.org/10.35384/jime.v16i1.511

Keywords:

Return on assets, Corporate social responsibility, Firm value

Abstract

Firm value is a notable indicator for stakeholders in the capital market. The graph or movement of the value is triggered by many causes that thereof pictures a firm’s capability of success. This research observes how profitability, an insightful measurement of a firm’s profit, and Corporate Social Responsibility (CSR) disclosure, an important measurement of the currently rising environmental issues, influence the value of the Indonesia Stock Exchange 2017-2021 listed consumer non-cyclical firms. Return on Assets (ROA), CSR index, and Tobin’s Q are, respectively, the calculations to that of profitability, CSR, and a firm’s value. The result laid out ahead of this research shows of an absolute consideration to valuing non-cyclical firms’ value with their profitability. Firms are then encouraged to increase its profitability as a mean to increase its value. On the contrary, CSR, based on the SEOJK No. 16/SEOJK.04/2021, is seemingly attested to be insignificant of firms’ value and in addition indicates a regulation inadequately implemented. The authority as well as firms hope to evaluate and implement it accordingly.

Downloads

Download data is not yet available.

References

Brigham & Houston. (2012). Dasar-dasar manajemen keuangan (1st ed.). Jakarta.

Brown, T.J.; Dacin, P. A. (1997). The company and the product: Corporate associations and consumer product responses. J. Mark., 61, 68–84.

Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of management review, 4(4), 497-505.

Chung, Jung, & Young. (2018). Do CSR activities increase firm value? Evidence from the Korean market. Sustainability (Switzerland), 10(9), 1-22.

Djailani, M.F. (2021, Jumat, 8 Oktober). Mayora, Wings, Unilever hingga Marimas jadi penyumbang sampah plastik terbesar di laut. Arkadia, suara.com. Retrieved from https://www.suara.com/news/2021/10/08/174054/mayora-wings-unilever-hingga-marimas- jadi-penyumbang-sampah-plastik-terbesar-di-laut

Djaja, I. (2020). All about corporate valuation (Edisi revisi). Elex Media Komputindo.

Ecoton. (2020). Oil palm plantations in Indonesia. Ecoton, Research. Retrieved from

https://ecoton.or.id/wp-content/uploads/2020/12/Oil-palm-plantations-in-Indonesia-EN-04- 1.pdf

Freeman, R. E. (1984). Strategic management: A stakeholder approach, Pitman, Boston, MA. Friedman, M. (1970). A theoretical framework for monetary analysis. J. Polit. Econ., 78, 193–238.

Guthrie, J. (2006.) The voluntary reporting of intellectual capital: Comparing evidence international from Hong Kong and Australia. Journal of Intellectual Capital, 7(2), 254-271.

Hadiwibowo, F., & Sufina, L. (2022). Pengaruh struktur modal, profitabilitas, pertumbuhan perusahaan terhadap nilai perusahaan: Studi empiris perusahaan sektor industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia Periode 2015-2019. STIE Indonesia Banking School.

Harahap, C. D., Juliana, I., & Lindayanti, F. F. (2018). The impact of environmental performance and profitability on firm value. Indonesian Management and Accounting Research, 17(1), pp. 53-70.

Hasian, G.M. & Suputra, I.D.G.D. (2020). The effect of profitability and environmental performance on firm value in consumer goods sector listed on Indonesian Stock Exchange 2017-2019. American Journal of Humanities and Social Sciences, 4(4), 60-64.

Hendrick, M. dan Jurianti. (2015). Pengaruh pengungkapan corporate social respon-sibility terhadap nilai perusahaan sub sektor restaurant, hotel, tourism, advertising dan media. Business Accounting Review, 3, 131-140.

Justriani, F. I. & Rahardjo, N. S. (2013). Analisis pengaruh profitabilitas, kebijakan dividen, kebijakan utang, dan kepemilikan manajerial terhadap nilai perusahaan. Diponegoro Journal of Accounting, 2(2), 1-10.

Kamaliah. (2020). Disclosure of corporate social responsibility (CSR) and its implications on company value as a result of the impact of corporate governance and profitability. International Journal of Law and Management, 62(4), 339-354.

Kholisdinuka, A. (2021). Unilever olah 16.300 ton sampah plastic di 2020. Detik, detikNews. Retrieved from

https://news.detik.com/berita/d-5607162/unilever-olah-16300-ton-sampah- plastik-di-2020

Kuncoro, M. (2007). Metode kuantitatif.

Luo, X.; Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. J. Mark., 70, 1–18.

Lusmeida, H. (2020). Analisis CSR dan corporate governance sebagai faktor determinasi nilai perusahaaan dengan profitabilitas sebagai pemoderasi. Jurnal Penelitian Akuntansi, 1(1), 1- 13.

Mackey, A.; Mackey, T. B.; Barney, J. B. (2007). Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Acad. Manag. Rev., 32, 817–835.

Maignan, I.; Ferrell, O. C. (2001). Antecedents and benefits of corporate citizenship: An investigation of French business. J. Bus. Res., 51, 37–51.

Maryanti, E. & Fithri, W.N. (2017). Corporate social responsibility, good corporate governance, kinerja lingkungan terhadap kinerja keuangan dan pengaruhnya pada nilai perusahaan. Journal of Accounting Science, 1(1), 21-37.

McWilliams, A.; Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Acad. Manag. Rev., 26, 117–127.

Murnita, P. E. M., & Putra, I. M. P. D. (2018). The effect of corporate social responsibility on company value with profitability and leverage as moderating variables. E-Journal of Accounting, 23(2), 1470-1494.

Okafor, A., Adusei, M., and Adeleye, B. (2021). Corporate social responsibility and financial performance: Evidence from US tech firms.Journal of Cleaner Production, 292, 126078.

Putra, A. A., Kristanti, F. T., Yudowati, S. P. (2017). The influence of corporate social responsibility against company value with profitability as a moderating variable. E Proceeding of Management. 53(9), 1689-1699.

Putra, I. B. D., & Wirakusuma, M. G. (2015). The influence of corporate social responsibility disclosure on company value with profitability as moderating. E Journal of Accounting at Udayana University, 13(2), 461-475.

Rajagukguk, L., Aries ta, V., & Pakpahan, Y. (2019). Analisis pengaruh profitabilitas, ukuran perusahaan, keputusan investasi, dan kebijakan utang terhadap nilai perusahaan. Jurnal Inspirasi Bisnis dan Manajemen, 3(1), 77.

Sekaran, U., & Bougie, R. (2016). Research methods for business. John Wiley & Sons Ltd. (7th ed.).

Simanjuntak, B., Sadalia, I., & Muda, I. (2020). The effect of corporate social responsibility (CSR) on corporate value with profitability as intervening (Case study company in Sri Kehati Index listed in BEI 2009-2018). International Journal of Research and Review, 7.

Sugiyono. (2015). Metode penelitian pendidikan (Pendekatan kuantitatif, kualitatif, dan R&D). Alfabeta.

Sulhan, M. & Pratomo, A.S. (2020). Analysis of the impact of financial performance on company value with corporate social responsibility and good corporate governance as moderating variables. Management and Economic Journal (MEC-J), 4(2), 163-174.

Suwasono, H. (2021). The influence of the investment opportunity set (IOS), profitability, investment decisions, dividend policy, and corporate social responsibility (CSR), on the value of manufacturing companies listed on the Indonesia Stock Exchange 2015-2019. International Journal of Seocology, 2(2), 71-78.

Wiagustini, N. L. (2013). Manajemen keuangan. Denpasar. Denpasar: Udayana University Press.

Worokinasih, S. & Zaini, M.L.Z. (2020). The mediating role of corporate social responsibility (CSR) disclosure on good corporate governance (GCG) and firm value. Australasian Accounting, Business and Finance Journal, 14(1), 88-96.

Downloads

Published

2023-12-28
Abstract Views: 27 | File Downloads: 23