THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ACTlVlTES ON PROFITABILITY AND STOCK PRICE (Studies on The companies listed on lndonesia Stock Exchange)
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Date
2013-07
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Journal ISSN
Volume Title
Publisher
Journal of Global Management, Global Research Agency, Volume 6, Number 1
Abstract
The purpose of this study was to determine the effect of disclosure activities of Corporate Social
Responsibility (CSR) on corporate performance. The company's performance on the study include the
company's operational performance as measured by return on assets (ROA) and net profit margin
(NPM), as well as the company's market performance as measured by its share price. The research was
conducted at manufacturing companies listed on the lndonesia Stock Exchange (IDX) using purposive
sampling technique. Research sample is 100 manufacturing companies listed on the lndonesia Stock
Exchange (IDX) on periode 2010. The method of analysis used is multiple regression analysis. Based on
testing, the results of this study shows that disclosure of Corporate Social Responsibility (CSR) has a
significant effect on company profits as measured by ROA and NPM. Similarly, the results of test of CSR
on stock prices, the result of this study shows that the CSR positively effect on stock prices. These findings
show that disclosure of Corporate Social Responsibility (CSR) have a positive impact on corporate
performance.
Description
Keywords
Corporate Social Responsibility (CSR), Return On Assets (ROA), Net Profit Margin (NPM), the Company Stock Price