PENGARUH CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP KINERJA KEUANGAN PERUSAHAAN (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2011)

Abstract

This study aims to determine how the effect of the practice of Corporate Social Responsibility (CSR) by companies to the corporate financial performance, specifically company's short-term profitability (accounting-based view) and company’s future profitability (market-based view). In this study, the independent variable CSR that consists of four categories of CSR dimensions according to Clarkson stakeholder framework, namely CSR employee dimension, CSR community dimension, CSR product dimension, and CSR environment dimension will be tested its effect on the dependent variable company’s short-term profitability which is proxied by return on assets (ROA) and company's future profitability which is proxied by Tobin's q. This study also used control variables, namely firm size, sales growth, and leverage. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) period in 2011 with the total sample were 112 companies which determined by purposive sampling method. After processing the data, it was found that as many as 23 samples are outliers and should be excluded from the research, so that the number of samples used in this study to be as many as 89 companies. Data analysis in this research carried out by using the classical assumption, whereas hypothesis testing carried out by using multiple linear regression analysis with two-equation model. The results of this study show that CSR has no significant effect on the company's short-term profitability but has positive and significant effect on the company’s future profitability. This study also found that the company's sales growth has positive and significant effect on company’s short-term profitability; leverage has negative and significant effect on the company's short-term profitability, and firm size has positive and significant effect on the company’s future profitability