THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE FINANCIAL SOUNDNESS MODERATED BY FINANCIAL STABILITY ON INDONESIAN BANKING FINANCIAL PERFORMANCE

Abstract

The study aims for analyzing the effect of Corporate Social Responsibility (CSR) and Corporate Financial Soundness (CFS) on financial performance moderated by financial stability. CSR on research focused on funds or cost issued CSR charities company banking in an ongoing program environment nor Public as well as health measured finances from earning quality, capital adequacy ratio and asset quality as well stability finance used for bridge connection with a performance finance company. The data used in the study is the source of secondary data from the report finance company, report becoming sustainable one unity in report annual companies that don't inseparable from the company sector banks listed on the Indonesia Stock Exchange in 2017-2021. The sample used purposive sampling, so obtained from 37 companies sector banking to be the sample. Data analysis used is analysis regression double with using the E-views 10 program. The results show that corporate social responsibility has no effect on return on assets, but has a significant effect on return on equity. The measurement of earning quality, capital adequacy ratio, and asset quality show a significant effect on return on assets. However, when measuring return on equity, only asset quality shows significant results. The build-up of the moderating variable, in this case, financial stability, is a difficult influence to conclude because the different results, on the one hand, strengthen and on the other hand, show contradictory results which can strengthen the effect but also show a weakening effect. So it is very difficult to conclude when testing financial stability moderation. A study shows that earning quality has an influence positive and significant on return on assets. Capital adequacy ratio has influence significant negative on return on assets. Asset quality has influence significant positive on return on assets. Stability finance could moderate with connection positive significance between capital adequacy ratio and return on assets. Size has a negative and significant influence on to return on assets, as well as liquidity and capitalization have an influence positive signs on the return on assets. Corporate social responsibility has influenced positively and significantly on return on equity. Asset quality has a significant negative effect on return on equity. Stability finance can be moderated by the direct connection of positive significance between corporate social responsibility and return on equity. Stability finance could moderate with negative relationship and Corporate social responsibility, earning quality, capital adequacy ratio, asset quality, variable control size, liquidity, and capitalization together give influence to performance financial return on assets and return on equity. Research results give information that exists high-concern companies towards sustainability and care programs company will invest in environmentally friendly.