The Effect of Corporate Social Responsibility and Financial Ratio to Company’s Value (Case Study of Companies Listed in LQ45 of IDX for the period 2011-2015)

DOI

10.2991/iconies-18.2019.25How to use a DOI?

Keywords

Corporate Social Responsibility, Stock Price, ROA, ROE, DER

Abstract

The purpose of this research is to verify empirically whether Corporate Social Responsibility and Financial Ratio affect company's value. Twenty companies listed in the LQ45 from Indonesia's Stock Exchange were used as sample. The samples data were taken from the year 2011-2015 using secondary data from the company's financial report. The independent variable is Corporate Social Responsibility and Financial Ratio: Return On Asset (ROA), Return On Equity (ROE) and Debt to Equity Ratio (DER) and the dependent variable is company's value represented by stock price. The statistical tests conducted is: T-test and F-test. This research's results indicate that when tested simultaneously, CSR provides an effect towards the company's value. When tested partially, ROA and ROE have an effect towards the company's value while DER provides no effect towards the company's value. When all variables are tested simultaneously, results indicate that CSR, ROA, ROE, and DER provides no effect towards company's value

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jennifer Luo
AU  - Herlina Lusmeida
PY  - 2019/10
DA  - 2019/10
TI  - The Effect of Corporate Social Responsibility and Financial Ratio to Company’s Value (Case Study of Companies Listed in LQ45 of IDX for the period 2011-2015)
BT  - Proceedings of the 2018 International Conference on Islamic Economics and Business (ICONIES 2018)
PB  - Atlantis Press
SP  - 128
EP  - 134
SN  - 2352-5428
UR  - https://doi.org/10.2991/iconies-18.2019.25
DO  - 10.2991/iconies-18.2019.25
ID  - Luo2019/10
ER  -