Can company size moderate corporate social responsibility disclosure effect on company profitability? Evidence from mining industry

Rahmawati Rahmawati (University of Muhammadiyah Palopo, Indonesia)
Riyanti Riyanti (University of Muhammadiyah Palopo, Indonesia)
Marwah Yusuf (Institute of Economic Science Bongaya, Indonesia)

Journal of Enterprise and Development (JED)
Vol. 6 No. 1 (2024): Journal of Enterprise and Development (JED)

Purpose — This study aims to examine the moderating effect of the company size on the relationship between Corporate Social Responsibility (CSR) disclosure and company profitability in mining industry.Method — This study employs multiple regression to examine the relationship between CSR disclosure and profitability using ROA and ROE proxies, with company size as a moderator. The observations were conducted on 12 mining companies listed on the Indonesia Stock Exchange during the period of 2018-2022.Result — We found that company size moderates the relationship between CSR disclosure and company profitability, using ROA and ROE as proxies. The results indicate that CSR disclosure had a positive and significant effect on company profitability when measured with ROA proxies but did not show significance with ROE proxies.Contribution  — This research contributes by using company size variable as the moderator in the relationship between CSR disclosure and financial performance.