SKRIPSI Jurusan Akutansi - Fakultas Ekonomi UM, 2010

Ukuran Huruf:  Kecil  Sedang  Besar

The Effect of Corporate Social Responsibility on Profitability and Market Performance of the Company

NITA ARISTA

Abstrak


ABSTRAK

 

Arista, Nita. 2010. "The Effect of Corporate Social Responsibility on Profitability and Market Performance of the Company". Thesis, Accounting Degree Program, Faculty of Economic, University of Malang. Advisors: (I) Yuli Astuti Widi SE, M. Si, Ak., (II) Makaryanawati SE, M. Si, Ak.

 

Keywords: Corporate Social Responsibility, Return on Assets, Cumulative Abnormal Return

 

Corporate Social Responsibility is a topic that has long existed and became a debate about why companies should implement CSR in its daily operations. By doing CSR, it  means that companies consider the interests of all stakeholders, so that will improve the performance of companies included its profitability. Companies with CSR means to reduce risk so that it will attract investors and increase its stock price in the market.

The purpose of this study is to give an idea of the influence of Corporate Social Responsibility LQ45 implemented by companies in Indonesia Stock Exchange on profitability (Return on Assets) and market performance (Cumulative Abnormal Return) of the company by entering the size and leverage as control variables. The population in this study are all companies included in the list of LQ45 companies in Indonesia Stock Exchange. LQ45 company used as a population, because the company has an obligation to submit annual reports to parties outside the company and have biggest liquidity and market capitalization of the Indonesia Stock Exchange. Of the 45 companies listed in the list of LQ45 companies, taken 24 companies that meet the criteria established earlier in the purposive sampling. The period of study is two years so the total pooled data are 48 datas. Analysis method of data using multiple linear regression analysis, using SPSS for windows release 16.0.

Simultaneously, there is significant influence CSR factors, size, and leverage to the company's profitability LQ45. The effect amounted to 22.2% while the remaining 77.8% is influenced by other factors. In the partial CSR only just having significant influence, but the research found a positive relationship between the size and ROA, and a negative relationship between leverage and ROA. The second hypothesis that CSR is no proven effect on CAR. However, the research managed to find the relation of size and CAR, and leverage to CAR. The conclusions of this analysis are, CSR affect company profitability, but does not affect the company's market performance LQ45. Advices given to the researchers next is necessary to use a more objective method to measure CSR and differentiate the samples based on the type of industry.