Business, Management and Accounting
8 years ago

Corporate Social Responsibility Boosts Company Value Through Positive Financial Performance.

DJA (Diponegoro Journal of Accounting)
PENGARUH CORPORATE SOCIAL RESPONSIBILITY PADA KINERJA KEUANGAN PERUSAHAAN DAN IMPLIKASINYA TERHADAP NILAI PERUAHAAN
Dinar Prasetya Nugraha, Wahyu Meiranto

Paper Summary

The study looked at how Corporate Social Responsibility affects a company's performance and value. They studied companies in Indonesia from 2010-2013. They found that CSR has a positive impact on Return on Equity (ROE) but not on Return on Assets (ROA). However, CSR does increase a company's overall value. Return on Equity can help improve the relationship between CSR and financial performance, but Return on Assets cannot help improve the relationship between CSR and company value.