Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia
The causality and bi-causality between corporate social responsibility and firm financial success are examined in this study. Companies listed on the Indonesia Stock Exchange for the years 2018 through 2021 make up the study's population. The sampling method utilized is the purposive sampling...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia, Faculty of Business and Economics, Department of Management
2023-08-01
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| Series: | Asian Management and Business Review |
| Subjects: | |
| Online Access: | http://journal.uii.ac.id/AMBR/article/view/29979 |
| _version_ | 1797728896807862272 |
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| author | Bagas Ardhi Yoga Satria Tri Gunarsih |
| author_facet | Bagas Ardhi Yoga Satria Tri Gunarsih |
| author_sort | Bagas Ardhi Yoga Satria |
| collection | DOAJ |
| description |
The causality and bi-causality between corporate social responsibility and firm financial success are examined in this study. Companies listed on the Indonesia Stock Exchange for the years 2018 through 2021 make up the study's population. The sampling method utilized is the purposive sampling method, which involves selecting samples based on criteria. 62 companies made up the sample. The Granger’s causality test is the causality test that is employed. The findings revealed that: 1) Corporate social responsibility has a positive impact on financial performance as measured by price to book value and earnings per share. 2) Price to book value and earnings per share, which are financial performance indicators, have a positive impact on corporate social responsibility. 3) There is a correlation between corporate social responsibility and financial performance, as measured by price to book value and earnings per share, which is bi-causal (two-way causality) and positive in direction.
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| first_indexed | 2024-03-12T11:20:42Z |
| format | Article |
| id | doaj.art-606295aba699498187d3d7bdd72b14f8 |
| institution | Directory Open Access Journal |
| issn | 2775-202X |
| language | English |
| last_indexed | 2024-03-12T11:20:42Z |
| publishDate | 2023-08-01 |
| publisher | Universitas Islam Indonesia, Faculty of Business and Economics, Department of Management |
| record_format | Article |
| series | Asian Management and Business Review |
| spelling | doaj.art-606295aba699498187d3d7bdd72b14f82023-09-02T00:37:17ZengUniversitas Islam Indonesia, Faculty of Business and Economics, Department of ManagementAsian Management and Business Review2775-202X2023-08-013210.20885/AMBR.vol3.iss2.art4Causality analysis in corporate social responsibility and financial performance: Evidence from IndonesiaBagas Ardhi Yoga Satria0Tri Gunarsih1Faculty of Business and Humanities, Universitas Teknologi Yogyakarta, Yogyakarta, IndonesiaFaculty of Business and Humanities, Universitas Teknologi Yogyakarta, Yogyakarta, Indonesia The causality and bi-causality between corporate social responsibility and firm financial success are examined in this study. Companies listed on the Indonesia Stock Exchange for the years 2018 through 2021 make up the study's population. The sampling method utilized is the purposive sampling method, which involves selecting samples based on criteria. 62 companies made up the sample. The Granger’s causality test is the causality test that is employed. The findings revealed that: 1) Corporate social responsibility has a positive impact on financial performance as measured by price to book value and earnings per share. 2) Price to book value and earnings per share, which are financial performance indicators, have a positive impact on corporate social responsibility. 3) There is a correlation between corporate social responsibility and financial performance, as measured by price to book value and earnings per share, which is bi-causal (two-way causality) and positive in direction. http://journal.uii.ac.id/AMBR/article/view/29979Corporate social responsibilityFinancial performanceBi-causalityGranger's causality |
| spellingShingle | Bagas Ardhi Yoga Satria Tri Gunarsih Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia Asian Management and Business Review Corporate social responsibility Financial performance Bi-causality Granger's causality |
| title | Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia |
| title_full | Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia |
| title_fullStr | Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia |
| title_full_unstemmed | Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia |
| title_short | Causality analysis in corporate social responsibility and financial performance: Evidence from Indonesia |
| title_sort | causality analysis in corporate social responsibility and financial performance evidence from indonesia |
| topic | Corporate social responsibility Financial performance Bi-causality Granger's causality |
| url | http://journal.uii.ac.id/AMBR/article/view/29979 |
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