THE EFFECT OF CSR AND LEVERAGE ON FINANCIAL PERFORMANCE IN MANUFACTURING COMPANIES OF INDONESIA

Authors

  • Rezki Achmad Fauzy Economy and Bussines Department, Trisakti University, Jakarta, Indonesia
  • Ayu Rakhmawati Economy and Bussines Department, Trisakti University, Jakarta, Indonesia
  • Henny Setyo Lestari Economy and Bussines Department, Trisakti University, Jakarta, Indonesia
  • Farah Margaretha Economy and Bussines Department, Trisakti University, Jakarta, Indonesia

DOI:

https://doi.org/10.29121/ijetmr.v10.i2.2023.1298

Keywords:

Corporate Social Responsibility, Leverage, Financial Performance

Abstract

The primary goal of this research is to ascertain the effects of corporate social responsibility and financial leverage on the financial performance of 38 Indonesia Stock Exchange-listed manufacturing companies for three years (2019-2021). This study utilizes two independent variables, which are corporate social responsibility and financial leverage as assessed by the debt equity ratio (DER) in analyzing their impact on financial performance metrics like return on equity (ROE), return on assets (ROA), and earnings per share (EPS). Secondary data was gathered from the financial reports (comprehensive income statements and financial position statements) of chosen companies listed from the Indonesian Stock Exchange (IDX). Descriptive statistical tests, multiple linear regression tests and hypothesis testing were utilized to examine the research data. The analysis results reveal that Corporate social responsibility and leverage have a significant and favorable effect, as assessed by the debt-to-equity ratio on the financial performance of 38 companies.

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Published

2023-02-25

How to Cite

Fauzy, R. A., Rakhmawati, A., Lestari, H. S., & Margaretha, F. (2023). THE EFFECT OF CSR AND LEVERAGE ON FINANCIAL PERFORMANCE IN MANUFACTURING COMPANIES OF INDONESIA. International Journal of Engineering Technologies and Management Research, 10(2), 29–38. https://doi.org/10.29121/ijetmr.v10.i2.2023.1298

Issue

Vol. 10 No. 2 (2023): IJETMR: Volume 10 Issue 2 - February, 2023

Section

Articles

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Copyright (c) 2023 Rezki Achmad Fauzy, Ayu Rakhmawati, Henny Setyo Lestari, Farah Margaretha

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