The influence of corporate social responsibility on firm performance with leverage as moderating variable in companies listed in SRI-KEHATI Index
Keywords:
CSR, Firm Performance, Firm Size, LeverageAbstract
Companies listed on the SRI-Kehati index are companies that implement CSR in accordance with the principles of Sustainable and Responsible Investment. This study aims to analyze the effect of CSR on firm performance in companies listed on the SRI-Kehati Index in 2015-2020 with a sample of 20 companies. This study use leverage as moderating variabel to measure whether leverage can strengthen or weaken the effect of CSR on firm performance and use firm size as control variabel. The sampling method is purposive sampling method and based on the criteria obtained a sample of 20 companies. The results showed that CSR had a significant negative effect on firm performance, leverage had a significant negative effect on firm performance, company size had no significant effect on firm performance, and leverage was able to strengthen the effect of CSR on firm performance.
References
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Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
Bunyaminu, A., & Yakubu, I. N. (2021). the Effect of Financial Leverage on Profitability: an Empirical Analysis of Recapitalized Banks in Ghana. International Journal of Accounting & Finance Review, January 2022, 93–102. https://doi.org/10.46281/ijafr.v7i1.1227
Ciftci, I., Tatoglu, E., Wood, G., Demirbag, M., & Zaim, S. (2019). Corporate governance and firm performance in emerging markets: Evidence from Turkey. International Business Review, 28(1), 90–103. https://doi.org/10.1016/j.ibusrev.2018.08.004
Cotte, J. (2019). An Examination of the moderating effects of board gender diversity and financial leverage on the relationship between corporate social responsibility and firm performance. In MIT Sloan Management Review (Vol. 50, Issue 2).
Ezhilarasi, G., & Kabra, K. C. (2017). The impact of corporate governance attributes on environmental disclosures: Evidence from India. Indian Journal of Corporate Governance, 10(1), 24–43. https://doi.org/10.1177/0974686217701464
Fachrudin, K. A. (2011). Analisis Pengaruh Struktur Modal, Ukuran Perusahaan, dan Agency Cost Terhadap Kinerja Perusahaan. Jurnal Akuntansi Dan Keuangan, 13(1), 37–46. https://doi.org/10.9744/jak.13.1.37-46
Fahad, P., & Busru, S. A. (2020). CSR disclosure and firm performance: evidence from an emerging market. Corporate Governance (Bingley), 21(4), 553–568. https://doi.org/10.1108/CG-05-2020-0201
Ferdous, L. T. (2019). Capital Structure Theories in Finance Research: A Historical Review. Australian Finance & Banking Review, 3(1), 11–19. https://doi.org/10.46281/afbr.v3i1.244
Gantino, R. (2016). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia periode 2008-2014. Jurnal Dinamika Akuntansi Dan Bisnis, 3(2), 19–32. https://doi.org/10.24815/jdab.v3i2.5384
Ghozali. (2019). PERUSAHAAN SEBAGAI VARIABEL MEDIASI, DAN VISIBILITAS SEBAGAI VARIABEL MODERASI dalam HUBUNGAN ANTARA CSR dengan REPUTASI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2016). Diponegoro Journal of Accounting, 7(4), 1–13.
Haddad, K., & Lotfaliei, B. (2019). Trade-off theory and zero leverage. Finance Research Letters, 31(April), 165–170. https://doi.org/10.1016/j.frl.2019.04.011
Hung, C. V., Vinh, T. P., & Thai, B. D. (2021). “The impact of firm size on the performance of Vietnamese private enterprises: A case study.†Problems and Perspectives in Management, 19(2), 243–250. https://doi.org/10.21511/ppm.19(2).2021.20
Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y. A., Shah, S. Z. A., & Shahzad, F. (2020). Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), 27–53. https://doi.org/10.1108/JGR-12-2018-0088
Javeed, S. A., & Lefen, L. (2019). An analysis of corporate social responsibility and firm performance with moderating effects of CEO power and ownership structure: A case study of the manufacturing sector of Pakistan. Sustainability (Switzerland), 11(1). https://doi.org/10.3390/su11010248
Karmani, M., & Boussaada, R. (2021). Corporate social responsibility and firm performance: does institutional quality matter? Journal of Applied Accounting Research, 22(4), 641–662. https://doi.org/10.1108/JAAR-07-2020-0153
Khalfan, N., Al Habsi, A., & Khalil, R. (2021). Financial Leverage and Firms’ Performance: A Study of Tri-Sector Listed Companies in Oman. 7(1), 2021.
Kraus, A., & Litzenberger, R. (1973). Optimal financial leverage. Journal of Finance, 911–922.
Lin, C. W., Tan, W. P., Lee, S. S., & Mao, T. Y. (2021). Is the Improvement of CSR Helpful in Business Performance? Discussion of the Interference Effects of Financial Indicators from a Financial Perspective. Complexity, 2021. https://doi.org/10.1155/2021/4610097
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/AJAR-06-2018-0008
Nguyen, V. C., Nguyen, T. N. L., Tran, T. T. P., & Nghiem, T. T. (2019). The impact of financial leverage on the profitability of real estate companies: A study from Vietnam stock exchange. Management Science Letters, 9(Spceial Issue 13), 2315–2326. https://doi.org/10.5267/j.msl.2019.7.023
Ningsih, S., & Utami, W. B. (2020). Pengaruh Operating Leverage dan Struktur Modal terhadap Kinerja Keuangan pada Perusahaan Go Publik Sektor Property Dan Real Estate. Jurnal Akuntansi Dan Pajak, 20(2). https://doi.org/10.29040/jap.v20i2.754
Noviani, A. V., Atahau, A. D. R., & Robiyanto, R. (2019). Struktur modal, profitabilitas, dan nilai perusahaan: Efek moderasi Good Corporate Governance. Jurnal Ekonomi Dan Bisnis, 22(2), 391–415. https://doi.org/10.24914/jeb.v22i2.2601
Nur Amalia, A., & Khuzaini. (2021). Pengaruh Ukuran Perusahaan, Leverage Dan Struktur Modal Terhadap Kinerja Keuangan. Jurnal Ilmu Dan Riset Manajemen, 10(5), 1–17.
Profile, S. E. E. (2022). EFFECT OF FIRM SIZE ON FINANCIAL PERFORMANCE OF MICROFINANCE INSTITUTIONS IN KENYA ; A CASE OF MOMBASA COUNTY EFFECT OF FIRM SIZE ON FINANCIAL PERFORMANCE OF MICROFINA .... February 2021.
Qwader, A. S., & Aloshaibat, S. D. (2020). Components of the Public Budget and Their Effects on Public Debt in Jordan. International Journal of Economics and Financial Issues, 10(3), 88–96. https://doi.org/10.32479/ijefi.9717
Ramadhani, R., & Maresti, D. (2021). Pengaruh Leverage dan Ukuran Dewan Direksi Terhadap Pengungkapan CSR. Ekonomis: Journal of Economics and Business, 5(1), 78. https://doi.org/10.33087/ekonomis.v5i1.262
Ravindran, M., & Kengatharan, L. (2021). Impact of Financial Leverage on Firm Profitability: Evidence from Non-Financial Firms Listed in Colombo Stock Exchange- Sri Lanka. South Asian Journal of Finance, 1(1), 80. https://doi.org/10.4038/sajf.v1i1.29
Sahraoui, W., & Kabore, R. E. (2021). The relationship between Corporate Social Responsibility and performance: the moderating effect of financial leverage.
Sial, M. S., Chunmei, Z., & Khuong, N. V. (2019). Do female and independent directors explain the two-way relationship between corporate social responsibility and earnings management of Chinese listed firms? International Journal of Accounting and Information Management, 27(3), 442–460. https://doi.org/10.1108/IJAIM-03-2018-0027
Tricahya Avilya, L., & Ghozali, I. (2022). PENGARUH INTELLECTUAL CAPITAL, GOOD CORPORATE GOVERNANCE DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN DENGAN MANAJEMEN LABA SEBAGAI VARIABEL MEDIASI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2018-2020). Diponegoro Journal of Accounting, 11(4), 1–15. http://ejournal-s1.undip.ac.id/index.php/accounting
Waheed, A., Hussain, S., Hanif, H., Mahmood, H., & Malik, Q. A. (2021). Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance. Cogent Business and Management, 8(1), 1–21. https://doi.org/10.1080/23311975.2021.1938349
Ward, A. M., & Ireland, N. (2020). Shareholder Theory/ Shareholder Value. 1–7.
Yuanita, R., & Muslih, M. (2019). PENGARUH PROFITABILITAS , LEVERAGE DAN SLACK RESOURCES TERHADAP PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY ( CSR ) ( Studi Kasus pada Perusahaan Sektor Pertambangan yang terdaftar di BEI tahun THE EFFECT OF PROFITABILITY , LEVERAGE AND SLCAK RESOURCES O. E-Proceeding of Management, 6(3), 5784–5792.
Barrios, J. M., Fasan, M., & Nanda, D. (2014). Is Corporate Social Responsibility an Agency Problem? Evidence from CEO Turnovers. SSRN Electronic Journal, May. https://doi.org/10.2139/ssrn.2540753
Bhernadha, Y., Topowijono, T., & Azizah, D. (2019). PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Pada Perusahaan Winner Of Sustainability Reporting Award (Sra) 2015 Yang Terdaftar Di Pt Bei Periode 2010-2014). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 44(1), 134–143.
Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
Bunyaminu, A., & Yakubu, I. N. (2021). the Effect of Financial Leverage on Profitability: an Empirical Analysis of Recapitalized Banks in Ghana. International Journal of Accounting & Finance Review, January 2022, 93–102. https://doi.org/10.46281/ijafr.v7i1.1227
Ciftci, I., Tatoglu, E., Wood, G., Demirbag, M., & Zaim, S. (2019). Corporate governance and firm performance in emerging markets: Evidence from Turkey. International Business Review, 28(1), 90–103. https://doi.org/10.1016/j.ibusrev.2018.08.004
Cotte, J. (2019). An Examination of the moderating effects of board gender diversity and financial leverage on the relationship between corporate social responsibility and firm performance. In MIT Sloan Management Review (Vol. 50, Issue 2).
Ezhilarasi, G., & Kabra, K. C. (2017). The impact of corporate governance attributes on environmental disclosures: Evidence from India. Indian Journal of Corporate Governance, 10(1), 24–43. https://doi.org/10.1177/0974686217701464
Fachrudin, K. A. (2011). Analisis Pengaruh Struktur Modal, Ukuran Perusahaan, dan Agency Cost Terhadap Kinerja Perusahaan. Jurnal Akuntansi Dan Keuangan, 13(1), 37–46. https://doi.org/10.9744/jak.13.1.37-46
Fahad, P., & Busru, S. A. (2020). CSR disclosure and firm performance: evidence from an emerging market. Corporate Governance (Bingley), 21(4), 553–568. https://doi.org/10.1108/CG-05-2020-0201
Ferdous, L. T. (2019). Capital Structure Theories in Finance Research: A Historical Review. Australian Finance & Banking Review, 3(1), 11–19. https://doi.org/10.46281/afbr.v3i1.244
Gantino, R. (2016). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia periode 2008-2014. Jurnal Dinamika Akuntansi Dan Bisnis, 3(2), 19–32. https://doi.org/10.24815/jdab.v3i2.5384
Ghozali. (2019). PERUSAHAAN SEBAGAI VARIABEL MEDIASI, DAN VISIBILITAS SEBAGAI VARIABEL MODERASI dalam HUBUNGAN ANTARA CSR dengan REPUTASI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2016). Diponegoro Journal of Accounting, 7(4), 1–13.
Haddad, K., & Lotfaliei, B. (2019). Trade-off theory and zero leverage. Finance Research Letters, 31(April), 165–170. https://doi.org/10.1016/j.frl.2019.04.011
Hung, C. V., Vinh, T. P., & Thai, B. D. (2021). “The impact of firm size on the performance of Vietnamese private enterprises: A case study.†Problems and Perspectives in Management, 19(2), 243–250. https://doi.org/10.21511/ppm.19(2).2021.20
Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y. A., Shah, S. Z. A., & Shahzad, F. (2020). Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), 27–53. https://doi.org/10.1108/JGR-12-2018-0088
Javeed, S. A., & Lefen, L. (2019). An analysis of corporate social responsibility and firm performance with moderating effects of CEO power and ownership structure: A case study of the manufacturing sector of Pakistan. Sustainability (Switzerland), 11(1). https://doi.org/10.3390/su11010248
Karmani, M., & Boussaada, R. (2021). Corporate social responsibility and firm performance: does institutional quality matter? Journal of Applied Accounting Research, 22(4), 641–662. https://doi.org/10.1108/JAAR-07-2020-0153
Khalfan, N., Al Habsi, A., & Khalil, R. (2021). Financial Leverage and Firms’ Performance: A Study of Tri-Sector Listed Companies in Oman. 7(1), 2021.
Kraus, A., & Litzenberger, R. (1973). Optimal financial leverage. Journal of Finance, 911–922.
Lin, C. W., Tan, W. P., Lee, S. S., & Mao, T. Y. (2021). Is the Improvement of CSR Helpful in Business Performance? Discussion of the Interference Effects of Financial Indicators from a Financial Perspective. Complexity, 2021. https://doi.org/10.1155/2021/4610097
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/AJAR-06-2018-0008
Nguyen, V. C., Nguyen, T. N. L., Tran, T. T. P., & Nghiem, T. T. (2019). The impact of financial leverage on the profitability of real estate companies: A study from Vietnam stock exchange. Management Science Letters, 9(Spceial Issue 13), 2315–2326. https://doi.org/10.5267/j.msl.2019.7.023
Ningsih, S., & Utami, W. B. (2020). Pengaruh Operating Leverage dan Struktur Modal terhadap Kinerja Keuangan pada Perusahaan Go Publik Sektor Property Dan Real Estate. Jurnal Akuntansi Dan Pajak, 20(2). https://doi.org/10.29040/jap.v20i2.754
Noviani, A. V., Atahau, A. D. R., & Robiyanto, R. (2019). Struktur modal, profitabilitas, dan nilai perusahaan: Efek moderasi Good Corporate Governance. Jurnal Ekonomi Dan Bisnis, 22(2), 391–415. https://doi.org/10.24914/jeb.v22i2.2601
Nur Amalia, A., & Khuzaini. (2021). Pengaruh Ukuran Perusahaan, Leverage Dan Struktur Modal Terhadap Kinerja Keuangan. Jurnal Ilmu Dan Riset Manajemen, 10(5), 1–17.
Profile, S. E. E. (2022). EFFECT OF FIRM SIZE ON FINANCIAL PERFORMANCE OF MICROFINANCE INSTITUTIONS IN KENYA ; A CASE OF MOMBASA COUNTY EFFECT OF FIRM SIZE ON FINANCIAL PERFORMANCE OF MICROFINA .... February 2021.
Qwader, A. S., & Aloshaibat, S. D. (2020). Components of the Public Budget and Their Effects on Public Debt in Jordan. International Journal of Economics and Financial Issues, 10(3), 88–96. https://doi.org/10.32479/ijefi.9717
Ramadhani, R., & Maresti, D. (2021). Pengaruh Leverage dan Ukuran Dewan Direksi Terhadap Pengungkapan CSR. Ekonomis: Journal of Economics and Business, 5(1), 78. https://doi.org/10.33087/ekonomis.v5i1.262
Ravindran, M., & Kengatharan, L. (2021). Impact of Financial Leverage on Firm Profitability: Evidence from Non-Financial Firms Listed in Colombo Stock Exchange- Sri Lanka. South Asian Journal of Finance, 1(1), 80. https://doi.org/10.4038/sajf.v1i1.29
Sahraoui, W., & Kabore, R. E. (2021). The relationship between Corporate Social Responsibility and performance: the moderating effect of financial leverage.
Sial, M. S., Chunmei, Z., & Khuong, N. V. (2019). Do female and independent directors explain the two-way relationship between corporate social responsibility and earnings management of Chinese listed firms? International Journal of Accounting and Information Management, 27(3), 442–460. https://doi.org/10.1108/IJAIM-03-2018-0027
Tricahya Avilya, L., & Ghozali, I. (2022). PENGARUH INTELLECTUAL CAPITAL, GOOD CORPORATE GOVERNANCE DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN DENGAN MANAJEMEN LABA SEBAGAI VARIABEL MEDIASI (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2018-2020). Diponegoro Journal of Accounting, 11(4), 1–15. http://ejournal-s1.undip.ac.id/index.php/accounting
Waheed, A., Hussain, S., Hanif, H., Mahmood, H., & Malik, Q. A. (2021). Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance. Cogent Business and Management, 8(1), 1–21. https://doi.org/10.1080/23311975.2021.1938349
Ward, A. M., & Ireland, N. (2020). Shareholder Theory/ Shareholder Value. 1–7.
Yuanita, R., & Muslih, M. (2019). PENGARUH PROFITABILITAS , LEVERAGE DAN SLACK RESOURCES TERHADAP PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY ( CSR ) ( Studi Kasus pada Perusahaan Sektor Pertambangan yang terdaftar di BEI tahun THE EFFECT OF PROFITABILITY , LEVERAGE AND SLCAK RESOURCES O. E-Proceeding of Management, 6(3), 5784–5792.
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Published
2023-07-29
How to Cite
Rosiana, R., & Akhmadi, A. (2023). The influence of corporate social responsibility on firm performance with leverage as moderating variable in companies listed in SRI-KEHATI Index. Journal of Management Science (JMAS), 6(3), 404–410. Retrieved from https://exsys.iocspublisher.org/index.php/JMAS/article/view/263
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