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

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

Authors
Aminah1, *, Djoko Suhardjanto2, Rahmawati Rahmawati2, Jaka Winarna2
1Economics and Business Faculty, Universitas Bandar Lampung, Bandar Lampung, Indonesia
2Economics and Business Faculty, Universitas Sebelas Maret, Surakarta, Indonesia
*Corresponding author. Email: aminah@ubl.ac.id
Corresponding Author
Aminah
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-066-4_5How to use a DOI?
Keywords
Profitability; Corporate Social Responsibility; Company Value
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.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2022
ISBN
978-94-6463-066-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-066-4_5How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Aminah
AU  - Djoko Suhardjanto
AU  - Rahmawati Rahmawati
AU  - Jaka Winarna
PY  - 2022
DA  - 2022/12/26
TI  - Impact of Financial Performance and CSR Disclosures on Consumer Goods Industry Companies
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 37
EP  - 44
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_5
DO  - 10.2991/978-94-6463-066-4_5
ID  - 2022
ER  -