Corporate social responsibility and company financial performance: a correlational study on indonesian publicly listed firms
This research investigates the corporate social responsibility (CSR) and firm financial performance that measure with stock price as well as the relationship between the two variables. The CSR and firm financial performance are calculated from the annual (sustainable) report of firms listed in LQ45 of the Indonesian Stock Exchange Market. The sampling criteria process begins with searching for the accurate information about total companies that listed in LQ45 within 2004 - 2011 through IDX. Can be concluded that, total population of LQ45 companies within time period from 2004 to 2011 was 96 companies. Where several of the 96 companies are not always listed in a row within the time period from 2004 - 2011 in LQ45 list. In order to investigate how the CSR affects stock market prices of 13-selected firms that listed in LQ45 in 2004-2011, this study uses three types of data analysis, which are (1) Descriptive statistics, (2) Classical normal linear regression test and (3) Regressions analysis. The result in partial test shows that only CSR employee, CSR community, size, ROE and leverage have significant effect on the stock price. It means that companies give attention to CSR for employee and community. Nevertheless, the other variables that have a significant positive influence on stock price are ROE, Size, and Leverage. It means company's also concern about their financial performance.
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