Journal of Management and Business Insight
Vol. 1 No. 1 (2023)

The Effect Of Corporate Social Responsibility On Profitability With Leverage As Moderating Variable

Titi Dewi Warninda (Syarif Hidayatullah State Islamic University of Jakarta)
Sakinah Faujiyah (Syarif Hidayatullah State Islamic University of Jakarta)



Article Info

Publish Date
20 Sep 2023

Abstract

Purpose- This study aims to analyze the effect of corporate social responsibility on the profitability of listed banks in Indonesia and analyze leverage as the moderating variable. Design/Methodology/Approach- This research uses data from 14 listed banks in the Indonesia Stock Exchange from 2017-2021. The equations to analyze the influence of corporate social responsibility and some control variables (firm size, capital adequacy ratio, leverage, and inflation) on profitability and the influence of leverage as a moderating variable are estimated using Fixed-Effect panel data regression. Findings- The results of this research show that firm size, capital adequacy ratio, leverage, and rate of inflation variables have a positive influence on profitability. Meanwhile, corporate social responsibility and the moderating effect of leverage do not significantly influence profitability. Research limitations/implications- The research findings are expected to become a reference for the investor and the bank management on the influence of corporate social responsibility on a listed bank's profitability and the effect of leverage as a moderating variable. Originality/value- As an intermediary, banks have different types of leverage than non-bank companies. This study analyzes the impact of corporate social responsibility with leverage as a moderating variable on the profitability of listed banks in the Indonesian Stock Exchange.

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Journal Info

Abbrev

JOMBI

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Journal of Management and Business Insight (JOMBI) is a peer-reviewed journal published two times per year (May and November) by the Faculty of Economics and Business, Ahmad Dahlan University, Indonesia. This journal is intended to be the journal for publishing articles reporting the results of ...