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The effect of corporate social responsibility on profitability with leverage as moderating variable Warninda, Titi Dewi; Faujiyah, Sakinah
Journal of Management and Business Insight Vol. 1 No. 1 (2023)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/jombi.v1i1.518

Abstract

Purpose-This study aims to analyze the effect of corporate social responsibility on the profitability of listed banks in Indonesia and analyze leverage as the moderating variable. Design/Methodology/Approach-This research uses data from 14 listed banks in the Indonesia Stock Exchange from 2017-2021. The equations to analyze the influence of corporate social responsibility and some control variables (firm size, capital adequacy ratio, leverage, and inflation) on profitability and the influence of leverage as a moderating variable are estimated using fixed effect panel data regression. Findings-The results of this research show that firm size, capital adequacy ratio, leverage, and rate of inflation variables have a positive influence on profitability. Meanwhile, corporate social responsibility and the moderating effect of leverage do not significantly influence profitability. Research limitations/implications-The research findings are expected to become a reference for the investor and the bank management on the influence of corporate social responsibility on a listed bank's profitability and the effect of leverage as a moderating variable. Originality/value-As an intermediary, banks have different types of leverage than non-bank companies. This study analyzes the impact of corporate social responsibility with leverage as a moderating variable on the profitability of listed banks in the Indonesian Stock Exchange.