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The Effect of Corporate Social Responsibility on Return on Assets, Return on Equity, and Net Profit Margin: Study of Food and Beverage Sub-Sector Companies Listed in the Indonesia Stock Exchange, 2016-2021

Author

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  • Nurdiana Ningsih

    (Hasanuddin University, Indonesia)

  • Alimuddin

    (Hasanuddin University, Indonesia)

  • Nadhirah Nagu

    (Hasanuddin University, Indonesia)

  • Afdal Madein

    (Hasanuddin University, Indonesia)

Abstract

This study aims to analyze the effect of corporate social responsibility (CSR) on financial performance, which is proxied by the ratios of return on assets (ROA), return on equity (ROE), and net profit margin (NPM). This study examined thirty populations of food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2016–2021. The sampling technique used was a non-probability sampling technique using purposive sampling, so that of the thirty listed companies, six companies met the sampling criteria. To analyze the data, simple linear regression analysis was used using SPSS 23 software. The results showed that: (1) corporate social responsibility has a positive and significant effect on return on assets; (2) corporate social responsibility has a positive and significant effect on return on equity; and (3) corporate social responsibility has no significant effect on net profit margin.

Suggested Citation

  • Nurdiana Ningsih & Alimuddin & Nadhirah Nagu & Afdal Madein, 2022. "The Effect of Corporate Social Responsibility on Return on Assets, Return on Equity, and Net Profit Margin: Study of Food and Beverage Sub-Sector Companies Listed in the Indonesia Stock Exchange, 2016-2021," European Journal of Business and Management Research, European Open Science, vol. 7(6), pages 297-303, October.
    • Handle: RePEc:epw:ejbmr0:v:7:y:2022:i:6:id:51759
    DOI: 10.24018/ejbmr.2022.7.6.1759
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