Abstract
The purpose of this research is to obtain empirical evidence about the effect of corporate social responsibility, credit interest, and bank size on financial performance at banking companies listed in Indonesia Stock Exchange in 2015-2017. The benefit of this research is to help convince investors to invest in the bank's companies . This research used a purposive sampling technique to collect data and consisted of 93 banking companies listed on the Indonesia Stock Exchange in 2015-2017. The statistical method used in this research is used multiple linear regression analysis methods. In this research used the Eviews program, 10 version. The results of the research based on the tests that have been carried out state that corporate social responsibility, and credit interest not had a significant effect on financial performance, while bank size had a significant positive effect on financial performance.
Highlights
Banking is a service company which are contained in capital market companies
Based on the results of descriptive statistics for 2015-2017, and the amount of data used is as much as 93 data, indicating that the Corporate Social Responsibility Disclosure Index has the minimum value on 0.0641, and it held by PT Bank Mitraniaga Tbk, with the maximum value on 0.6667 and it held by PT Bank Central Asia (BCA) Tbk and PT Bank Rakyat Indonesia (BRI) (Persero) Tbk because that companies have the same value on Corporate Social Responsibility Disclosure Index, and the mean value of Corporate Social Responsibility is 0.426799, and standard deviation is 0.1563982
Whereas for the dependent variable is financial performance that is proxied using Return On Asset, it has a minimum value of 0.0013 held by Bank BukopinTbk, the maximum value is 0.0311 and it held by PT Bank Central Asia Tbk, the mean value of financial performance that proxied by Return On Asset is 0.012108, and the standard deviation is 0.0073260
Summary
Banking is a service company which are contained in capital market companies. According to the Otoritas Jasa Keuangan, (2018)the understanding of bank are as follows: "Banks are business entities that collect funds from the public in the form of deposits and distribute them to the public in the form of loans and / or other forms in order to improve people's lives."Banking companies have the same goals as other companies, which are to produce the maximum profit so they can produce a good level of financial performance. Financial statements are used to provide information to parties in need, such as the community, investors, creditors, and the government. Financial performance at this time is an important factor and can be a determinant of whether the management has managed the company's finances well, whether management has been able to use company finances to improve the performance of company assets so as to provide benefits to the company so as to improve the company's financial performance. The Deposit Insurance Agency (LPS) projects banking profitability ratios aka return on assets (RoA) in 2017 of 2.5%. This figure improved from the November 2016 position of 2.37%. Dody Arifianto, Head of the LPS Economic and Financial System
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