Does Corporate Social Responsibility Enhance the Impact of Financial Performance On Firm Value?

Abstract

This study aims to determine the effect of financial performance as measured by return on asset (ROA), return on equity (ROE), and debt to assets ratio (DAR) on firm value as measured by price to book value (PBV) with corporate social responsibility (CSR) as a moderation variable. The data used is secondary data with a quantitative approach, where the population of food and beverage sector companies listed on the IDX is 73 companies. Using purposive sampling techniques, there were 17 companies that met the criteria, so there were 34 samples in this study. The hypothesis testing method used is multiple regression analysis and moderated regression analysis with the help of IBM SPSS 25. The results of this study show that Corporate Social Responsibility (CSR) is able to strengthen the influence of Return on Asset (ROA) and Return on Equity (ROE) on Price to Book Value (PBV), and Corporate Social Responsibility (CSR) does not influence Debt to Assets Ratio (DAR) on Price to Book Value (PBV). Overall, these results show that the tendency of investors in determining the purchase of shares in the food and beverage sector on the Indonesian stock exchange is more influenced by ratios that are directly related to the returns that will be received by investors and ratios related to profit receipts compared to ratios that are not directly related to returns and profit receipts such as debt ratio or profitability.