The Effect of Corporate Social Performance on Financial Performance With Firm Size as a Control Variable

Abstract

Purpose: The purpose of this study is to examine whether the variables of social performance and corporate financial performance affect each other.
 Methodology: The research has used quantitative methods, namely, regression testing, in the form of descriptive statistics and multiple regression analysis. The data obtained in this research are analyzed by using the Statistical Product and Service Solutions (SPSS) program, version 22. In order to answer the study objectives, the researcher analyzes the mining companies listed on the Indonesian Stock Exchange (IDX).
 Results: The results of this study indicate that social performance has a significant positive effect on corporate financial performance; this is as per good management theory. Furthermore, it was found that financial performance has a significant positive effect on corporate social performance; this is as per slack resources theory.
 Implication: This study implies that social performance can help firms to improve social performance. Hence, a firm should consider depositing its profitability to increase social performance that may lead to the improvement of firm performance.

Sustainable supply chain management practices and firm performance: the mediating effect of firm capabilities

“…To account for potential confounding aspects in the dependent and mediating variables, management literature recommends including firm size, firm age and industry type as control variables (Andi et al. , 2019).…”

“…To account for potential confounding aspects in the dependent and mediating variables, management literature recommends including firm size, firm age and industry type as control variables (Andi et al, 2019). Using a Likert scale, the personnel size was used as a proxy for the size of the company whilst the industry type is categorised as either service or manufacturing (Dang et al, 2018;Rogers et al, 2010).…”

Pengungkapan Corporate Social Responsibilty Dalam Laporan Keberlanjutan

“…Teori stakeholder menegaskan bahwa pengungkapan cosporate social responsibility yang baik dapat memungkinkan bisnis memperoleh nilai positif dari pemangku kepentingan, yang menghasilkan banyak manfaat, seperti loyalitas pelanggan, dan kepercayaan dari pemberi pinjaman dan investor (Andi et al 2019). Respon stakeholder yang baik terhadap pengungkapan cosporate social responsibility suatu perusahaan tentunya akan memudahkan suatu perusahaan untuk mencapai posisi keuangan yang baik (Margaretha, 2012).…”

“…Hasil penelitian Sadeghi et al (2016) menunjukkan bahwa kinerja sosial perusahaan berpengaruh positif terhadap kinerja keuangannya, yang dinyatakan dengan profitabilitas. Selanjutnya hasil penelitian Andi et al (2019), menunjukkan bahwa ada pengaruh positif antara kinerja sosial dan keuangan perusahaan.…”

Does Corporate Social Responsibility Reduce Information Asymmetry?: Empirical Evidence From Pakistan

“…Overall, CSR is to utilize the firm's resources in such a way as to foster the sustainability of firms and to promote information transparency and accountability (Cui et al, 2018). However, researchers have written various papers on the relation of CSR with key financial measures to understand the effect and relational significance of CSR (Agyemang & Ansong, 2017;Al-Hadi et al, 2019;Andi et al, 2019;Blasi et al, 2018;El Ghoul et al, 2011;Galbreath & Shum, 2012;Kiran et al, 2015;Samet & Jarboui, 2017;Skufina et al, 2019). Though, literature discloses that a consensus could not be established on how CSR affects firm performance and other related variables (Sheikh, 2019;Van Ha, 2018;Yang et al, 2019).…”