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Profitability, Corporate Social Responsibility Disclosure, and Corporate Value of Non-Cyclicals Listed in Indonesia Clifeld Jeremias Joram Unsulangi; Lediana Sufina
Jurnal Ilmu Manajemen dan Ekonomika Vol. 16 No. 1 (2023): Jurnal Ilmu Manajemen dan Ekonomika, Vol. 16, No.1, December 2023
Publisher : Indonesia Banking School

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35384/jime.v16i1.511

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 firm’s capability of success. This research observes how profitability, an insightful measurement of a firm’s 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 Tobin’s Q are, respectively, the calculations to that of profitability, CSR, and a firm’s value. The result laid out ahead of this research shows of an absolute consideration to valuing non-cyclical firms’ 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 firms’ value and in addition indicates a regulation inadequately implemented. The authority as well as firms hope to evaluate and implement it accordingly.