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Impact of Financial Performance and CSR Disclosures on Consumer Goods Industry Companies

In: Proceedings of the International Colloquium on Business and Economics (ICBE 2022)

Author

Listed:
  • Aminah

    (Universitas Bandar Lampung, Economics and Business Faculty)

  • Djoko Suhardjanto

    (Universitas Sebelas Maret, Economics and Business Faculty)

  • Rahmawati Rahmawati

    (Universitas Sebelas Maret, Economics and Business Faculty)

  • Jaka Winarna

    (Universitas Sebelas Maret, Economics and Business Faculty)

Abstract

This paper aim to examine the influence of financial performance and disclosure of corporate social responsibility on the market value of consumer goods manufacturing companies listed on the Indonesia Stock Exchange in 2019–2020. The investigation utilizes secondary data extracted from annual financial statements. This study employs a sample of 50 companies that was selected purposively. By employing multiple linear regression model, the test results demonstrate a significantly positive relationship between financial performance as a proxy for return on assets (ROA) and firm value (Tobins Q). These results indicate that the company’s capability to generalize assets into profits has a positive impact on the company’s market value. Other findings indicate that corporate social responsibility as proxied by the global reporting initiative (GRI) index has a positive and statistically significant influence on company value, implying that disclosure of social responsibility investments has contributed to the enhancement of business reputation. This study can serve as a practical resource for business actors seeking to maximize corporate value by improving financial performance and disclosing social responsibility initiatives.

Suggested Citation

  • Aminah & Djoko Suhardjanto & Rahmawati Rahmawati & Jaka Winarna, 2022. "Impact of Financial Performance and CSR Disclosures on Consumer Goods Industry Companies," Advances in Economics, Business and Management Research, in: Rahmawati Rahmawati & Mulyaningsih Tri & Arifin Taufiq & Hendarsjah Hidajat (ed.), Proceedings of the International Colloquium on Business and Economics (ICBE 2022), pages 37-44, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-066-4_5
    DOI: 10.2991/978-94-6463-066-4_5
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