CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND INDONESIAN FIRM VALUE: THE MODERATING EFFECT OF PROFITABILITY AND FIRM’S SIZE

Abstract

In comparison with the growth of Corporate Social Responsibility (CSR) practices in Indonesia, the studies on the impact of CSR disclosure on firm value has provided more steadily and the findings are deficient. This study empirically examines the nexus between corporate social responsibility disclosure and firm value and also investigates the mediating role of profitability and firm size. This research adopted Moderated Regression Analysis (MRA) to estimate the relationship between the variables involved in this study. The research involved 49 mining sector firms in Indonesia between 2019 and 2020 that were listed on the Indonesia Stock Exchange (IDX). The findings reveal that corporate social responsibility disclosure has a significant effect on firm value in the mining sector in Indonesia. This study also confirms that profitability and firm size can moderate the effect of corporate social responsibility disclosure on firm value. Practical and theoretical suggestions also are provided.