Can company size moderate corporate social responsibility disclosure effect on company profitability? Evidence from mining industry
DOI:
https://doi.org/10.20414/jed.v6i1.8462Keywords:
CSR disclosure, profitability, ROA, ROE, company sizeAbstract
Purpose — This study aims to examine the moderating effect of the company size on the relationship between Corporate Social Responsibility (CSR) disclosure and company profitability in mining industry.
Method — This study employs multiple regression to examine the relationship between CSR disclosure and profitability using ROA and ROE proxies, with company size as a moderator. The observations were conducted on 12 mining companies listed on the Indonesia Stock Exchange during the period of 2018-2022.
Result — We found that company size moderates the relationship between CSR disclosure and company profitability, using ROA and ROE as proxies. The results indicate that CSR disclosure had a positive and significant effect on company profitability when measured with ROA proxies but did not show significance with ROE proxies.
Contribution — This research contributes by using company size variable as the moderator in the relationship between CSR disclosure and financial performance.
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