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Disclosure of Social Responsibility, Profitability to Improve the Company Value
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Thisstudyaimstoexamineandanalyzetheeffectofsocialresponsibilitydisclosureand profitabilityonfirmvalue.Disclosureofsocialresponsibilityismeasuredinaccordance with the concept of sustainability development in sustainability report which is based on the Global Reporting Initiative standard. Profitability is measured using return on investment and company value is measured based on stock prices. The object of this research is state-owned banks that are listed on the stock exchange. The sample was chosen based on purposive sampling conducted during 5 years of observation, namely 2014-2018, and selected as many as 4 samples of state-owned banks with 20 observations. The type of data used in this study is secondary data with descriptive quantitative analysis method.Tests on research variables are carried out using multiple linear regression analysis by performing statistical tests of classical assumptions and hypothesistestingFandt.Theresultsofthestudyprovethatsimultaneouslycorporate social responsibility(CSR)and return on investment(ROI)haveapositiveandsignificant effect on stock prices with a large influence of 67.5%. Partially social responsibility disclosures do not have a significant effect on stock prices but provide a positive direction of influence of 0.061. This shows that disclosure of social responsibility has a relationship in line with stock prices. While return on investment has a positive effect of 1.667 and is significant for stock prices.The results of the study prove that simultaneously corporate social responsibility (CSR) and return on investment (ROI) have a positive and significant effect on stock prices with a large influence of 67.5%. Partially social responsibility disclosures do not have a significant effect on stock prices but provide a positive direction of influence of 0.061. This shows that disclosure of social responsibility has a relationship in line with stock prices. While return on investment has a positive effect of 1.667 and is significant for stock prices.
Title: Disclosure of Social Responsibility, Profitability to Improve the Company Value
Description:
Thisstudyaimstoexamineandanalyzetheeffectofsocialresponsibilitydisclosureand profitabilityonfirmvalue.
Disclosureofsocialresponsibilityismeasuredinaccordance with the concept of sustainability development in sustainability report which is based on the Global Reporting Initiative standard.
Profitability is measured using return on investment and company value is measured based on stock prices.
The object of this research is state-owned banks that are listed on the stock exchange.
The sample was chosen based on purposive sampling conducted during 5 years of observation, namely 2014-2018, and selected as many as 4 samples of state-owned banks with 20 observations.
The type of data used in this study is secondary data with descriptive quantitative analysis method.
Tests on research variables are carried out using multiple linear regression analysis by performing statistical tests of classical assumptions and hypothesistestingFandt.
Theresultsofthestudyprovethatsimultaneouslycorporate social responsibility(CSR)and return on investment(ROI)haveapositiveandsignificant effect on stock prices with a large influence of 67.
5%.
Partially social responsibility disclosures do not have a significant effect on stock prices but provide a positive direction of influence of 0.
061.
This shows that disclosure of social responsibility has a relationship in line with stock prices.
While return on investment has a positive effect of 1.
667 and is significant for stock prices.
The results of the study prove that simultaneously corporate social responsibility (CSR) and return on investment (ROI) have a positive and significant effect on stock prices with a large influence of 67.
5%.
Partially social responsibility disclosures do not have a significant effect on stock prices but provide a positive direction of influence of 0.
061.
This shows that disclosure of social responsibility has a relationship in line with stock prices.
While return on investment has a positive effect of 1.
667 and is significant for stock prices.
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