Corporate Social Responsibility and Firm Value: Industry Type and Leverage as Moderating Variables

Abstract

The purpose of this research is to examine the influence of corporate social responsibility disclosure toward the firm value using industry type and leverage as a moderating variable. The Kompas 100 Index firms were used in this study, except for financial companies and banks, which are listed on the Indonesia Stock Exchange and submit annual reports or sustainability reports for the years 2017-2019. Multiple regression analysis with a moderate regression analysis method was used to conduct the test. The findings show that: (1) corporate social responsibility disclosure has no impact on firm value, (2) industry type does not moderate the impact of corporate social responsibility disclosure on firm value, and (3) leverage moderates the impact of corporate social responsibility disclosure on firm value.

Keywords: Corporate social responsibility disclosure, Firm value, Industry type, Leverage

DOI: 10.7176/RJFA/12-18-05

Publication date:September 30^th 2021