ANALYSIS OF THE IMPACT OF FINANCIAL PERFORMANCE ON FIRM VALUE WITH CORPORATE SOCIAL RESPONSIBILITY AS A MODERATING VARIABLE: BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (2021-2024)

Brinda  Rysha; Muh.Ashary  Anshar; Andi Faisal  Syam

doi:10.53067/ijomral.v5i5.500

Authors

Brinda Rysha Institut Bisnis dan Keuangan Nitro
Muh.Ashary Anshar Institut Bisnis dan Keuangan Nitro
Andi Faisal Syam Institut Bisnis dan Keuangan Nitro

DOI:

https://doi.org/10.53067/ijomral.v5i5.500

Keywords:

Financial Performance; ROA; NPL; Corporate Social Responsibility; Firm Value; Tobin's Q; Banking.

Abstract

This study aims to analyze the influence of financial performance on company value by Corporate Social Responsibility (CSR) as a moderating variable in banking companies listed on the Indonesia Stock Exchange for the 2021-2024 period. Financial performance in this study is proxied using Return on Assets (ROA) and Non-Performing Loan (NPL), while firm value is measured using Tobin's Q and CSR is used as a moderating variable. The study uses a quantitative approach with secondary data obtained from annual reports, financial reports, and corporate social responsibility (CSR) disclosures. The research sample consists of 10 banking companies with 40 observations selected using the techniquepurposive sampling. Data analysis was carried out using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with the help of the SmartPLS application. The results show that ROA has a positive and significant effect on firm value, while NPL has a negative and significant effect on firm value. ROA also has a positive and significant effect on CSR. CSR has a positive and significant effect on firm value and is able to strengthen the influence of ROA on firm value. However, CSR is unable to moderate the effect of NPL on firm value. These results indicate that increased profitability and good credit risk management, accompanied by CSR implementation, are important factors in increasing the value of banking companies.

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