Citation:

Putri Nur Azizah, Ika Yustina Rahmawati, Erna Handayani, Alfato Yusnar Kharismasyah. "Analysis of CSR, Firm Size, and Financial Ratio on the IndonesiaStock Exchange: How Does it Impact on Profitability?" International Research Journal of Economics and Management Studies, Vol. 3, No. 4, pp. 130-137, 2024.

Abstract:

This research aims to examine the influence of CSR, leverage, company size and liquidity on profitability. This research was conducted on companies in the energy sector and basic materials sector listed on the Indonesia Stock Exchange for the period 2019-2022. The sample selection in this research used a purposive sampling method, and 90 sample companies were obtained from 14 companies in the energy sector and 13 companies in the materials sector. The data used in this research consists of quantitative data obtained from secondary data using unbalanced data. Moreover, they are using the SPSS version 26 analysis tool. This research provides results that the variables CSR, leverage and company size do not affect profitability. Meanwhile, the liquidity variable influences profitability. This research also contributes to company management regarding the importance of profitability for companies to improve the company’s image with the profits obtained.

References:

[1] Adilla, N., Afni, Z., & Siskawati, E. (2023). The Influence of Corporate Social Responsibility (CSR), Liquidity, and Sales Growth on Company Profitability in Basic Material Sector Companies Listed on the Indonesian Stock Exchangein 2018-2021. Indonesian Journal of Accounting, Business and Economics (JABEI), 2(1), 13-24.
[2] Adria, C., & Susanto, L. (2020). The Influence of Leverage, Liquidity, Firm Size, and Total Asset Turnover on Profitability. Accounting Paradigm Journal, 2(1), 393-400.
[3] Afrianti, D., & Purwaningsih, E. (2022). The effect of leverage, liquidity and asset growth on profitability. ScientificJournal of Management, Economics, & Accounting (MEA), 6(2), 1781-1796.
[4] Aurelia, R. A., Murni, Y., & Yatim, M. R. (2022). The Influence of Environmental Performance, Environmental Costs,Leverage, and Firm Size on Profitability in Mining Companies in Indonesia. Journal of Information Systems, Accounting & Management), 2(3), 397-411.
[5] Dian Darmayanti, P. (2021). The Influence of Liquidity, Activity, and Solvency on Profitability in Textile and Garment Sub-Sector Companies Listed on the Indonesian Stock Exchange (Doctoral dissertation, Ganesha EducationUniversity).
[6] Dr. Lela Nurlela Wati, S.E., M.M, Model Corporate Social Responsibility (CSR). Edisi 1. Jawa Timur: MyriaPublisher. 2019
[7] Firmansyah, D. I., & Riduwan, A. (2021). The influence of working capital turnover, leverage, and liquidity on profitability. Journal of Accounting Science and Research (JIRA), 10(2).
[8] Fransisca, E., & Widjaja, I. (2019). The Influence of Leverage, Liquidity, Sales Growth and Firm Size on theProfitability of Manufacturing Companies. Journal of Managerial and Entrepreneurship, 1(2), 199-206.
[9] Fuad, M., Sara, O., & Daud, M. N. (2019). The Influence of Working Capital Turnover, Operating Leverage and Financial Leverage on the Profitability of Retail Sector Companies on the Indonesian Stock Exchange. Jkbm (Journalof Business and Management Concepts), 5(2), 131-145.
[10] Irfani, A. S. (2020). Financial and Business Management; Theory and Applications. Gramedia Pustaka Utama.
[11] Januwito, F. (2022). The Influence of Firm Size, Profitability, Capital Intensity and Sales Growth on Tax Avoidance. Proceedings: Economics and Business, 2(1), 343-353.
[12] Maria, M., Wiagustini, L. P., & Sedana, I. P. (2019). The Influence of Firm Size, Leverage and Liquidity on Profitability in the Esperanca Timor-Oan (ETO) Company Dili Timor-Leste. Udayana University Economics andBusiness E-Journal, 8(1), 23-40.
[13] Matondang, F. F., & Wuryani, E. (2020). The Influence of Activity, Liquidity and Solvency on Profitability in Foodand Beverage Companies in Bei 2014-2018 (Doctoral dissertation, Udayana University).
[14] Nasir, M. J. A. (2021). The Influence of Leverage, Sales Growth, and Firm Size on Profitability. Economic Bulletin: Management, Development Economics, Accounting, 18(2), 261-286.
[15] Nurhayati, S. A., & Wijayanti, A. (2022). The influence of institutional ownership, liquidity, and leverage on profitability. Innovation: Journal of Economics, Finance and Management, 18(2), 360-36.
[16] Pangestu, J. C., Setiawan, T., & Kurniawan, S. (2023). CSR Disclosure, Firm Size, Leverage and Its Effect on Company Profitability Basic Materials BEI 2019-2021. Jurnal Ekonomi Bisnis, Manajemen dan Akuntansi (JEBMA),3(3), 771-778.
[17] Pradnyaswari, N. M. A. D., & Dana, I. M. (2022). The Influence of Liquidity, Capital Structure, Firm Size, andLeverage on Profitability in Automotive Sub-Sector Companies (Doctoral dissertation, Udayana University).
[18] Pratiwi, A. E. (2019). The Effect of Working Capital Turnover, Firm Size, Leverage and Receivables Turnover on Profitability (Empirical Study on LQ45 Companies Listed on the IDX) (Doctoral dissertation, Stiesia Surabaya).
[19] Pratiwi, A., Nurulrahmatia, N., & Muniarty, P. (2020). The Influence of Corporate Social Responsibility (CSR) onProfitability in Banking Companies Listed on the BEI. Owner: Riset dan Jurnal Akuntansi, 4(1), 95-103.
[20] Putra, R., & Kadang, J. (2020). The Influence of Operating Leverage and Financial Leverage on Profitability.Tadulako University Management Science Journal (JIMUT), 6(2), 096-102.
[21] Ristiani, A. V., Nurlaela, S., & Dewi, R. R. (2020, September). Leverage, Firm Size, Liquidity on the Profitability ofPharmaceutical Companies in the BEI Period 2012-2018. In Seminar Nasional Manajemen, Ekonomi dan Akuntansi(Vol. 5, No. 1, pp. 78- 85).
[22] Rizki, A. G. S., & Ridha, M. H. (2022). Analysis of the Influence of Leverage, Liquidity and Firm Size on Main BoardCompanies in the Tobacco Subsector Period 2013-2020. Akuntansiku, 1(3), 153-168.
[23] Sasanti, E. E., Animah, A., & Della Nabila, D. T. (2022). The Influence of CSR and GCG on Profitability. Tata Million Scientific Journal STIA Mataram,8(1), 16-26.
[24] Setiyowati, S., Titisari, K. H., & Siddi, P. (2022). The influence of capital structure, leverage, liquidity and corporatesocial responsibility on profitability. AKUNTABEL, 19(1), 153-159.
[25] Sholikha, I., Susbiyani, A., & FA, I. K. (2019). The Influence of Corporate Social Responsibility, Leverage and Size on Profitability. International Journal of Social Science and Business, 3(3), 272-280.
[26] Singah, L. A., Tumbel, T. M., & Mangindaan, J. V. (2022). Analysis of PT Indosat Tbk’s Financial Performance Based on Liquidity Ratios and Profitability Ratios. Productivity, 3(6), 495-500.
[27] Sugianto, C. A., & Meirisa, F. (2023, April). The Effect of Leverage and Firm Size on Profitability. In MDP StudentConference. (Vol. 2, No. 2, pp. 197- 204).
[28] Sukmayanti, P., Wayan, N., & Triaryati, N. (2019). The influence of capital structure, liquidity and firm size onprofitability in property and real estate companies (Doctoral dissertation, Udayana University).
[29] Supitriyani, S., Azwar, K., Siregar, S. R., Astuti, A., & Susanti, E. The Effect of Liquidity, Leverage and Firm Size onProfitability. International Journal Of Trends In Accounting Research, 1(1), 52-59.
[30] Susilawati, E., & Purnomo, A. K. (2023). The impact of leverage and corporate growth on profitability. Owner: Research and Accounting Journal, 7(2), 955-964.
[31] Syahzuni, B. A., & Florencia, S. (2022). The Impact of Social Responsibility Disclosure on Company Profitability.Fair Value: Scientific Journal of Accounting and Finance, 4(Special Issue 3), 1451-1465.
[32] Tambunan, B. R., Saragih, M. Y. S., Aruan, D. A., & Situmorang, F. (2023). The Influence of Leverage, Liquidity andFirm Size on Profitability in Mining Sub-Sector Companies. Journal of Management and Bussines (JOMB), 5(2), 1589-1596.
[33] Veronica, V., & Saputra, A. J. (2021, April). The influence of firm size, company growth and sales growth oncompany profitability. In ECONOMIC FORUM (Vol. 23, No. 2, pp. 215-222).
[34] Wakhidati, N. K., & Idayati, F. (2022). The Influence of Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), and Firm Size on Company Profitability. Journal of Accounting Science and Research (JIRA),11(4).
[35] Widhi, N. N., & Suarmanayasa, I. N. (2021). The effect of leverage and sales growth on profitability in textile and garment subsector companies. Scientific Journal of Accounting and Humanics, 11(2), 267-275.

Keywords:

CSR, Leverage, Firm Size, Liquidity, Profitability.