Assessing the relationship between corporate social responsibility with financial performance of firms
The research assesses the relationship between the Corporate Social Responsibility practices and financial performance. This research uses content analysis to measuring the relationship and resulting two hypotheses. The data used is come from the total number of firms listed in the LQ45, ranging from 2009 until 2013. From the total of 84 firms were listed during five years, 18 are chosen, based on the existence of a firm between 2009 and 2013. The result showed that practices of the CSR give the positive relationship with the financial performance. It explained that economic and product responsibility as indicators of CSR activities, give a significant effect to ROA and ROE. It means that the investors are more interested to see the economic condition and product promotion, rather than the other indicators of a firm. However, with a good financial performance will improving the CSR practices, which become greater.
B01837 | (wh) | Available |
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