Corporate Social Responsibility

Abstract

Abstract: Corporate Social Responsibility (CSR) is recognized as a strategic and long-term investment that brings about various economic advantages for companies. Consistent implementation of CSR not only enhances consumer preference for products but also attracts interest from potential investors, making CSR an innovative and continuous marketing tool that significantly contributes to a company's success. This paper explores the impact of Corporate Social Responsibility Disclosure (CSRD) and Leverage on Firm Value, with Profitability acting as the moderating variable. Analytical tools such as Moderated Regression Analysis (MRA) and Multiple Linear Regression are employed in this study, utilizing a dataset covering 68 firm-years of information from listed companies in Indonesia, including CSR reports from 2012 to 2015.The findings reveal that leverage has a substantial influence on firm value, whereas CSRD alone does not exhibit a significant effect on firm value. Additionally, the profitability variable is identified as an effective moderator, strengthening the correlation between corporate social responsibilities and firm value, as well as reinforcing the relationship between leverage and firm value. These results have critical implications for practitioners, especially in shaping CSR disclosure strategies to effectively address firm value considerations. Keywords: corporate social responsibility, firm value, leverage, profitability.