The Effect of Financial Performance and Company Size towards Corporate Social Responsibility (CSR) Disclosure
(1) Zefanya Perwita Adyasari, (2) Ludfi Djajanto, (3) Rita Darmayanti

State Polytechnic of Malang
Jl. Soekarno Hatta No. 9, Malang 65141, Indonesia

Abstract

The goals of this study were to examine the effect of company size and financial performance, which included profitability (ROA), leverage (DER), and liquidity (CR), on Corporate Social Responsibility (CSR) disclosure. The objects of this research were 47 mining companies listed on the Indonesia Stock Exchange (IDX). The sample used was of 10 sub-sector of coal mining companies chosen by a purposive sampling technique. The hypothesis analysis applied to this study was Multiple Linear Regression using SPSS 26 application. The results showed profitability (ROA) has a negative significant effect on Corporate Social Responsibility (CSR) disclosure. Meanwhile, the leverage (DER) and liquidity (CR) had a negative effect on Corporate Social Responsibility (CSR) disclosure. The company size has a positive significant effect on the Corporate Social Responsibility (CSR) disclosure. Simultaneously, profitability (ROA), leverage (DER), liquidity (CR), and company size had significant effect on Corporate Social Responsibility (CSR) disclosure.

Keywords: Profitability (ROA), Leverage (DER), Liquidity (CR), Company Size, Corporate Social Responsibility (CSR) Disclosure

Topic: Finance