The Effect of Corporate Social Responsibility and Ownership Structure on Financial Performance of Consumer Non Cyclicals Companies in Indonesian

Abstract

This study aims to analyze the influence of corporate social responsibility and ownership structure on financial performance of consumer non-cyclical companies in Indonesian. This study analyzes several variables, namely CSR, institutional ownership, managerial ownership, concentration of ownership, firm age, firm size and leverage to financial performance. This study uses secondary data obtained from the financial statements and annual reports of companies listed on the IDX for the period 2017 - 2022. The collection of research samples was carried out using a purposive sampling method or sampling with certain criteria. There were 33 with 198 observation data coming from 10 sub-industries of Consumer Non Cyclicals Companies. The data analysis used to test the hypothesis is a multiple regression test using eviews 10 software. The results show that CSR and firm age have a positive and significant effect on the financial performance. Meanwhile, institutional ownership, concentration of ownership, firm size and leverage have a negative and significant effect on the financial performance. Managerial ownership has no significant effect on the financial performance. The company should improve programs and policies that implement and integrate corporate social responsibility to company's business, adjusting the percentage of institutional share ownership and concentrated ownership through restructuring the share ownership structure. The company is also expected to reduce the company's leverage value and optimize the use of its assets to carry out profitable investment activities. The results of this study are expected to provide input for companies and investors to consider corporate social responsibility, share ownership structure, firm age, firm size and leverage.