The Effect of Size, Profitability, and Liquidity on Corporate Social Responsibility (CSR) (Empirical Study: LQ-45 Companies on IDX)
Ayu Agustyaningsih, Puji Handayati
Universitas Negeri Malang
Abstract
The concept of corporare social responsibility (CSR) disclosure within the company is currently very important, as evidenced by the existence of a regulation that requires every company to disclose their CSR. The purpose of this study is to provide an overview of the practice of CSR carried out by LQ-45 companies in Indonesia and to know the effect of company characteristics (company size, profitability, and liquidity) on CSR disclosure in LQ-45 companies. The population in this study is LQ-45 companies. The sampling method in this study used purporsive sampling so that the sample in this study is 17 companies in LQ-45 listed on the Indonesia Stock Exchange in period 2012-2013. Data analysis method used multiple linear regression analysis. The result in this study shows that company size factors, profitability, and liquidity simultaneously and significantly influence on CSR disclosure in LQ-45 companies. In partially, only liquidity does not have a significant effect on CSR disclosure, but there are negative relationship between corporate liquidity and CSR disclosure.
Keywords: Size, Profitability, Liquidity, Corporate Social Responsibility.
Topic: Islamic Banking, Finance, Insurance, and Sharia Accounting