Available online at JIME website: https://journal.
id/index.
php/jime/ Profitability.
Corporate Social Responsibility Disclosure, and Corporate Value of NonCyclicals Listed in Indonesia Clifeld Jeremias Joram Unsulangi1.
Lediana Sufina*2 Indonesia Banking School.
Jakarta.
Indonesia Received: 17th November 2023.
Revised: 17th November 2023.
Accepted: 25th Desember 2023 Available online: 28th December 2023.
Published regularly: December 2023 Abstract Firm value is a notable indicator for stakeholders in the capital market.
The graph or movement of the value is triggered by many causes that thereof pictures a firmAos capability of success.
This research observes how profitability, an insightful measurement of a firmAos profit, and Corporate Social Responsibility (CSR) disclosure, an important measurement of the currently rising environmental issues, influence the value of the Indonesia Stock Exchange 2017-2021 listed consumer non-cyclical firms.
Return on Assets (ROA).
CSR index, and TobinAos Q are, respectively, the calculations to that of profitability.
CSR, and a firmAos value.
The result laid out ahead of this research shows of an absolute consideration to valuing non-cyclical firmsAo value with their profitability.
Firms are then encouraged to increase its profitability as a mean to increase its value.
On the contrary.
CSR, based on the SEOJK No.
16/SEOJK.
04/2021, is seemingly attested to be insignificant of firmsAo value and in addition indicates a regulation inadequately implemented.
The authority as well as firms hope to evaluate and implement it accordingly.
Keywords: return on assets, corporate social responsibility, firm value *) Corresponding Author Email: lediana.
sufina@ibs.
id (Lediana Sufin.
Jurnal Ilmu Manajemen dan Ekonomika.
Vol.
No.
1 Desember 2023: 53-68 Abstrak Nilai perusahaan menjadi satu indikator penting di pasar modal bagi pemangku kepentingan.
Pergerakan nilai tersebut dapat terpengaruhi oleh banyak hal dan selanjutnya menjadi gambaran sejauh mana kapasitas kesuksesan perusahaan.
Penelitian ini meninjau sejauh mana pengaruh profitabilitas, sebagai rasio penting dalam mengukur keuntungan, dan pengungkapan Corporate Social Responsibility (CSR), sebagai ukuran penting aspek lingkungan yang menjadi agenda hangat saat ini, terhadap nilai perusahaan pada perusahaan sektor non-cyclicals yang terdaftar di Bursa Efek Indonesia periode 2017- 2021.
Keuntungan perusahaan diukur dengan rasio Return on Assets (ROA).
CSR dengan indeks CSR, dan nilai perusahaan dengan TobinAos Hasil penelitian ini menunjukkan bahwa profitabilitas tetap menjadi pertimbangan penting untuk perusahaan bahan primer.
Namun demikian, hasil penelitian ini mengidentifikasi bahwa aspek lingkungan CSR berdasarkan SEOJK Nomor 16/SEOJK.
04/2021 tidak memiliki pengaruh terhadap nilai perusahaan, dan juga mengindikasikan peraturan tersebut belum berhasil secara menyeluruh diterapkan perusahaan.
Otoritas dan perusahaan diharapkan untuk mengevaluasi dan menerapkannya di lapangan.
Kata kunci: return on assets, corporate social responsibility, nilai Perusahaan.
INTRODUCTION
Company value is an important indicator of a namely profitability and Corporate Social Responsibility (CSR).
public company in the eyes of shareholders, and Profitability is one of the financial aspects that for this reason.
Djaja .
states that companies has a significant influence on the value of the will always create and realize their company value Many companies certainly adhere to a in retaining shareholders.
He went on to say "top profit-oriented paradigm.
This is because by management is always faced with the classic achieving the maximum profit, the company is question of 'how to raise the value of the company said to have succeeded in maximizing resources.
for the benefit of shareholders?'" The question Profitability, which is generally interpreted as the means that the company's business activities are ability to generate net profit from the company's executed in disguise with the intention or interest overall business operations, is an important aspect to maintain and also increase the value of the to pay attention to, especially investors.
According to Agustina .
it is natural for Company value is also related to investor investors to make profitability the main concern perceptions regarding the success capacity of a because the purpose of establishing the company company (Rajagukguk et al.
, 2.
so it is itself is to make a profit.
A high level of important to maintain or improve.
The purpose of profitability is a significant consideration in this study is also to examine variables that, based investors' investment decisions and can affect the on previous research, can affect company value, value creation of a company.
Thus, companies also need to consider the creation of company Unsulangi.
Sufina.
Profitability.
Corporate Social AA.
ISSN: 2084-309(Prin.
value through the company's ability to generate the company to pay more attention to the impacts maximum profits.
arising from the company's operations and be The company's business activities are often more responsible (Maryanti & Fithri, 2.
The accompanied by negative impacts on the Corporate Social A company in the goods and Responsibility (CSR) is also important to bind consumption sector is an example of activity that companies to accountability or responsibility for is closely related to social environmental issues.
environmental impacts due to business activities.
This is because such companies move quickly in Based on the demands of the community for their productionAifast-movingAiseeing the very companies to be open and responsible, companies nature of such goods and consumer products that also need to consider the implementation of CSR are quickly exhausted from purchases that are and for that also know the effect on company always needed or in demandAinon-cyclicals.
Recently, there has been a lot of occurrence.
Non-cyclicals company products are primary Public protests against the company caused by needs products which means people buy these environmental issues.
products on the basis of needs or interests which PT Mayora.
PT Indofood.
PT Wilmar are independent of economic circumstances.
Indonesia and PT Unilever are some of the many Unlike other company stocks, non-cyclicals companies dealing with this issue.
An example of companies are classified as companies with price a specific activity is the sale of single-use gallon movements or stock values that are resistant or bottled water by PT Mayora.
In addition, a waste defensive in times of recession.
When the audit from July 25 to August 21 by Ecoton on the east coast of Surabaya showed a total of 1,776 remain the primary needs purchased by the public.
garbage consisting of 220 brands belonging to 127 The company's stock is also a defensive, low- companies and PT Indofood was also identified in volatility and predictable stock.
non-cyclicals PT Unilever also faces waste problems where From this perspective, the creation of corporate PT Unilever has donated more or less 30,000 tons value through the production of the company's business generally seems insignificant.
From the (Kholisdinuka, detik.
same perspective, this study will also prove the There is also a waste problem arising from PT Wilmar Cahaya Indonesia's business process significance of corporate value creation through or based on profitability and CSR disclosure.
which causes water pollution in rivers where people work as farmers, fish anglers and rubber
THEORITICAL
HYPOTHESIS DEVELOPMENT
(Ecoton.
The operations clearly have an impact on the environment and move the community to demand
FRAMEWORK
AND
Stakeholder Theory Stakeholder theory is a theory that concerns the Jurnal Ilmu Manajemen dan Ekonomika.
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1 Desember 2023: 53-68 relationship between the organization and all related parties inside and outside or called performance in an effort to meet the expectations Freeman .
stakeholders as individuals or sets of individuals information in the market, it is expected that who can influence or be affected by the related external parties can distinguish good and bad conditions from a company.
While maintaining the core understanding, stakeholder categorizing stakeholders into several groups.
The Examples are strategic and moral stakeholders (Goodpaster, (Pearce.
Corporate Social Responsibility Corporate Social Responsibility (CSR) is very diverse and therefore does not have one fixed definition.
CSR
is also often referred to as social contribution, stakeholders such as shareholders, employees, and customers (Wood, 1.
, and also primary stakeholders, responsibility based on ethics, and and secondary stakeholders (Clarkson, 1.
The also understood as a voluntary activity of main thing about this categorization is to companies for the development of the social emphasize that there are various kinds of environment (Maignan &.
Ferrel, 2001.
Brown & stakeholders with different expectations or Dacin, 1998.
Luo & Bhattacharya, 2006.
Mackey .
Mackey.
& Barney, 2.
A narrower understanding was also proposed by Friedman Signalling Theory .
where Friedman explained that CSR is a The information disclosed by the company will form of respecting the opinions of stakeholders.
influence the decision making of shareholders.
Conversely.
CSR can be defined broadly Information, specific examples such as the level where the application of CSR by companies of profitability of a company, certainly provides widens the scope of social welfare beyond the good signals for shareholders and influences their company's profits (McWilliams & Siegel, 2.
investment decisions.
According to Brigham & With various understandings, the application of Houston .
, signals are actions taken by CSR itself can vary in each company.
The forms of CSR implementation are measured by certain providing signs or signals about management's CSR measures or indices such as applicable assessment of company prospects.
This signal is legislation governing sustainable development in interpreted as a sign related to the company's risks a country.
Financial Services Authority (SEOJK) and profits as well as future prospects.
That way.
Circular such information becomes very important, concerning the Form and Content of the Annual especially for candidates or shareholders because Report of Issuers or Public Companies is an Letter Number 16/SEOJK.
04/2021
Unsulangi.
Sufina.
Profitability.
Corporate Social AA.
ISSN: 2084-309(Prin.
example of measuring CSR .
uch as energy.
Company value can also be defined as the state water, waste, emissions, etc.
) through the that has been achieved by the company and is described as investor perception of management performance regulated in the regulation.
performance through a series of processes for Profitability (Rajagukguk et al, 2.
Profitability has an important influence on the Thus, with the higher the value of the So with a high level of profitability, there are many opportunities for the company to performance means good and the prosperity of the Companies can increase the prosperity company owner is greater (Wiagustini, 2.
of their shareholders, expand business, improve other words, the higher the value of the company quality and of course company value.
Profitability in the capital market, the higher the company's also provides benefits for the company's business owners, management and external parties tied to confidence to invest for investors in the company.
the company.
Profitability is used to determine whether the profit generated is sufficient compared to the (Rajagukguk.
Ariesta.
Company Size The size of a company is defined as the size of the company itself as seen from total assets.
Pakpahan, 2.
Profitability measurement can Simply put, total assets are a large measure of all use one of the financial ratios that investors often company assets (Hendrik &.
Juniarti, 2.
consider, namely Return on Assets (ROA).
Compared to sales, the long-term nature of total Referring to the research of Rajagukguk et al assets makes it suitable as an indicator of .
ROA is a ratio that shows the amount of company measurement.
Thus, the higher the total asset contribution in generating net profit.
The assets in a company, the larger the company.
higher the return on assets, the higher the amount The scope of impact of the variables tested of net profit as a result of each dollar in total from each company in the same industry can differ depending on the size of the company and, for that, the size of the company also needs to be Company Value monitored in this study.
According to Hendrik and Juniarti .
, company value is a perception from investors The Effect of Corporate Social Responsibility which is generally related to the company's own (CSR) on Corporate Value stock price.
Stock price is a reflection of demand In addition to leaving a good impression, it and supply in the market which means a reflection should also be remembered that CSR is a form of of people's assessment of company performance.
corporate accountability.
This is in accordance Jurnal Ilmu Manajemen dan Ekonomika.
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1 Desember 2023: 53-68 with stakeholder theory which asserts that the value of non-cyclicals companies.
stakeholders because companies cannot survive without their stakeholders.
Stakeholders will affect the sustainability of the company so that the implementation of corporate responsibility or The Effect of Profitability (ROA) on Company Value Satisfactory company profitability is a form of benefit by the company to stakeholders, for example for shareholders.
CSR will affect the value of the company itself.
For this reason, information or disclosures related to environmental responsibility disclosed by the company Ae in line with signal theory Ae are expected to be responded to by investors through an increase company value (Harahap.
Juliana, &.
Lindayanti, 2.
The more informative the company's CSR disclosure, the higher the CSR score or index measured by SEOJK Number Stakeholder theory itself also has a consistent understanding where the company must provide benefits for stakeholders and for the sustainability of the company itself .
eeing the sustainability of the company depends on the existence of Furthermore, a high level of investorsAisignal theory.
16/SEOJK.
04/2021 and so is the company's value.
H1: CSR disclosure has a positive effect on Corporate Social Responsibbility Independent Variable Dependent Variable Company Value Profitability Company Size Independent Variable Control Variable Figure 1.
Research Framework Unsulangi.
Sufina.
Profitability.
Corporate Social AA.
ISSN: 2084-309(Prin.
Of course, a high level of profitability is a company value as dependent variables.
Data good signal and in accordance with The investor's collection techniques are carried out by collecting, investment decision-making preferences will help recording and also reviewing data that is already the company in creating high corporate value.
available, namely non-participation data or This is because with a high level of profitability secondary data.
For the purposes of this study, shows good and profitable company performance, secondary data is all information taken from and investors will be interested in buying shares annual reports, including financial information, of that company.
Thus, a high level of profitability and sustainability reports of companies in the can increase company value (Purbawangsa &.
IDX-IC sector D manufacturing classification.
Suprasto, 2.
namely those listed on the Indonesia Stock H2: Profitability has a positive effect on the value Exchange (IDX).
The data collection period is 5 of non-cyclicals enterprises.
years, from 2017 to 2021.
This research covers the population of non-
RESEARCH METHOD
cyclicals companies listed for the period 2017- This study aims to examine the effect of 2021 on the Indonesian stock exchange.
Such Corporate Social Responsibility (CSR) and profitability on company value.
The population of this study is companies listed in the Indonesian materialsAimaterials that are used and/or also Stock Exchange Industrial Classification (IDX- needed almost all the timeAiso that contributions IC), namely the sector coded DAithe sector of to the environment are fairly frequent.
The sample consumer non-cyclicals companies.
The research collection method uses purposive sampling with design chosen is in the form of quantitative sample selection criteria, namely the disclosure of Research like this is research that the company's annual report at once and or also explains the causality relationship between separately from the sustainability report in the variables in research by testing predetermined five-year research observation period .
7- hypotheses (Simanjuntak.
Sadalia.
Muda, 2.
So that the number of samples was The causality research method is carried out to obtained at 265 companies.
determine the strength and direction of the Furthermore, secondary data is obtained by relationship between two or more variables accessing the company's website and the (Kuncoro, 2.
Indonesia Stock Exchange (IDX).
Table 1 shows In this study, testing and analysis were the selection process of the research sample.
The conducted to see the influence of independent operationalization of variables used in this study can be seen in Table 2.
Responsibility (CSR) Corporate Social Jurnal Ilmu Manajemen dan Ekonomika.
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1 Desember 2023: 53-68 Table 1.
Sample Criteria of Research Objects Kriteria Jumlah Jumlah sampel awal perusahaan non-cyclicalstercatat Perusahaan tidak memenuhi kriteria penelitian .
Jumlah perusahaan dengan kriteria penelitian Periode Pengamatan .
Jumlah observasi awal Outliers Jumlah observasi akhir Table 2.
Operational Variables No.
Variable Formulation Variable Definition Variable Source Dependent TobinAos Q:
Company Value ycAycOycI ycNycuycycayco Debt ycNycuycycayco yaycycyceycyc Ratio company shares with a comparison of the total Financial or Annual Report outstanding shares and total debt to total company assets Independent Corporate CSRI:
Social Responsibility (CSR) Profitability The index company's non-financial Company ycycuycycayco yccycuyce CSR ycycuycycayco cycycnycyceycycnyca disclosures in the form of ROA:
The ratio measures a Net income after tax company's ability to generate profits from the ycycuycycayco ycaycsyceycs Sustainability Report Financial or Annual Report utilization of its assets Control Company size based on the Company Size Log of Total Assets overall amount of company Financial or Annual Report Unsulangi.
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Profitability.
Corporate Social AA.
ISSN: 2084-309(Prin.
Tabel 3.
Descriptive Statistics TOBINSQ
ROA
CSRI
LOGASSETS
Mean Median Maximum Minimum Std.
Dev.
Skewness Kurtosis Jarque-Bera Probability Sum Sum Sq.
Dev.
Observations Tabel 4.
Hypothesis Testing Results Variable ROA
CSRI
LOGASSE
R-squared Adjusted R-squared Coefficient Std.
Error t-Statistic Prob.
F-statistic Prob(F-statisti.
The research model used is RESULT.
DISCUSSION.