Effect of Corporate Social Responsibility Disclosure on Financial Performance

Abstract

This study aims to predict the possibility of a causal model of the effect of disclosure of Corporate Social Responsibility on corporate financial performance. In addition, this study also examines the motivation for implementing CSR based on financial performance in industrial sector manufacturing companies that disclose CSR activities and are listed on the Indonesia Stock Exchange during 2013 - 2019 make-up and household items. The number of samples is 36 companies. Data were analyzed by GSCA. The result is that there is a significant direct effect between CSR on Return on Assets (ROA) and Return on Equity (ROE). In addition, there is a significant direct effect between ROA and ROE on CSR. There are empirical findings in this study. First, ROA has a positive effect on CSR and vice versa CSR has a positive effect on ROA. Second, ROE has a positive effect on CSR and vice versa CSR has a positive effect on ROE.