Pengaruh Biaya Corporate Social Responsibility Terhadap Kinerja Keuangan dan Nilai Perusahaan [Influence of Cost against Corporate Social Responsibility, Financial Performance, and Value]

Abstract

Corporate social responsibility is becoming increasingly important in Indonesia and many companies get into trouble when they do not care about environmental and social issues. The purpose of this research is to analyze the influence of corporate social responsibility expenditure on the financial performance and value of a firm. The samples used in this study were 56 companies listed in the Indonesia Stock Exchange 2012 and 2013. The samples were chosen using the purposive sampling method based on certain designated criterias. Corporate social responsibility expenditure is measured by employee welfare cost and social expenditure for the community. The financial performance is measured by return on assets (ROA) and the firm value is measured by Tobin’s Q ratio. For testing hypothesis, this study used multiple regression analysis. The result of this study showed that the employee welfare cost had a positive effect toward financial performance (ROA) and no effect toward firm value (Tobin's Q) while social expenditure for community had no effect toward financial performance (ROA) and firm value (Tobin’s Q).