Abnormal Effect of CSR on Company Financial Performance

Abstract

Purpose: The purpose of this study is to determine the effect of Abnormal CSR on the Company's Financial Performance Research Method: This study uses a quantitative approach. The type of research used is causality research. The population that is used as the research subject is related to manufacturing companies that are listed on the Indonesia Stock Exchange and publish consistent and complete financial reports during the 2014-2019 period. Manufacturing companies listed as go public companies on the Indonesia Stock Exchange during the 2014-2019 period were 139 companies, then reduced by 10 unusable data because they did not meet the specified criteria so that the total sample used was 129 companies. The source of data used in this research is financial statements consisting of balance sheets, profit/loss reports, and financial ratios. Results: The results of this study show the results of the t test, namely abnormal CSR has a significant positive effect on profitability, leverage has a significant positive effect on profitability, and company size has no significant effect on profitability. The results of the f test produce abnormal CSR, Leverage, and company size which together have a significant influence on profitability. And the results of the r-square test have abnormal results CSR, Leverage, and company size has an effect of 72% on profitability. Conclusion: Based on the study results, it can be concluded that abnormal CSR has a significant positive effect on profitability.