Title: EFFECT OF CORPORATE SOCIAL RESPONSIBILITY AND LEVERAGE ON COMPANY VALUE WITH PROFITABILITY AS AN INTERVENING VARIABLE (CASE STUDY: FOOD AND BEVERAGE COMPANIES ON THE INDONESIA STOCK EXCHANGE)
Authors:
Tio Krisnawati Novega and *Indra Siswanti
Abstract:
This study aims to examine the effect of Corporate Social Responsibility (CSR) and Leverage on company value, with profitability as a mediating variable. The population studied was food and beverage companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The sampling technique used was purposive sampling, so that a total of 15 samples were obtained for analysis. In this study, the data analysis techniques used were panel data regression and Sobel Test. The results of the analysis show that CSR has a positive effect on company value, which indicates that companies that are active in CSR practices tend to have a higher value in the eyes of investors. In addition, the results also show that profitability has a positive effect on company value, which means that companies that are able to generate good profits will increase the value of the company. Furthermore, this study found that profitability acts as a mediating variable in the relationship between CSR and company value. This suggests that the positive effect of CSR on company value can be explained through increased profitability. In other words, companies that implement CSR well not only improve their reputation and image, but can also improve financial performance which ultimately has a positive impact on company value. These findings provide important insights for firm management in formulating effective CSR strategies to increase company value.
Keywords: Corporate Social Responsibility (CSR), Leverage, Company Value, Profitability.
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