THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN MODERATING THE EFFECT OF FINANCIAL PERFORMANCE ON COMPANY VALUE

Abstract

Sri-Kehati Stock Index contains shares of companies in Indonesia that apply the principles of Sustainable Responsible Investment (SRI), as well as environmental, social, and governance (ESG) principles. These three principles are indicators of the company's CSR implementation. This study aims to prove the role of corporate social responsibility in moderating the effect of profitability, leverage, and size on firm value. This research uses the descriptive associative method. The sampling technique uses purposive sampling on the Sri-Kehati stock index for 2017-2021. The number of samples selected was 15 shares. The data analysis technique uses Moderated Regression Analysis (MRA).The results of this study show that leverage has a negative effect on firm value, while firm size has a positive effect on firm value. However, profitability does not affect firm value. Disclosure of CSR can moderate the effect of profitability and firm size on firm value. Nevertheless, CSR disclosure cannot moderate the effect of leverage on firm value.