The Relationship Between CSR Disclosure and Company Profitability in Indonesia

Authors

SATRIYO BAYU AJI Seto ČÁSTEK Ondřej

Year of publication 2021
Type Article in Proceedings
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web https://www.atlantis-press.com/proceedings/piceeba-20/125957794
Doi http://dx.doi.org/10.2991/aebmr.k.210616.010
Keywords Corporate social responsibility, return on asset, return on equity, net profit margin
Description In this modern era, companies could depend on CSR activities to increase public trust in company products, resulting in rising company profits. This paper focuses on the relationship between CSR Disclosure and Company’s Profitability in the Asia Sustainability Report Awards (ASRA) 2019 Winner Company. This quantitative research is conducted to prove the effect of CSR disclosure on Profitability (Return on Asset (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) ratio) as the measurement tools. This research uses secondary data from the 24 ASRA winner companies’ financial reports in the 2017-2019 periods. The findings indicate that Corporate Social Responsibility Disclosure positively affects ROA and NPM. In reverse, it has a negative effect on ROE.
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