Proceedings of the 5th International Public Sector Conference, IPSC 2023, October 10th-11th 2023, Bali, Indonesia

Research Article

The Mediation Role Of Profitability In The Relationship Between Corporate Social Responsibility Disclosure And Stock Returns: Evidence From Indonesia

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  • @INPROCEEDINGS{10.4108/eai.10-10-2023.2342193,
        author={Lisa Sri Apriani  Putri and Jaja  Suteja and Erik Syawal  Alghifari and Ellen  Rusliati and Bayu Indra  Setia},
        title={The Mediation Role Of Profitability In The Relationship Between Corporate Social Responsibility Disclosure And Stock Returns: Evidence From Indonesia},
        proceedings={Proceedings of the 5th International Public Sector Conference, IPSC 2023, October 10th-11th 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={IPSC},
        year={2023},
        month={12},
        keywords={corporate social responsibility profitability stock return},
        doi={10.4108/eai.10-10-2023.2342193}
    }
    
  • Lisa Sri Apriani Putri
    Jaja Suteja
    Erik Syawal Alghifari
    Ellen Rusliati
    Bayu Indra Setia
    Year: 2023
    The Mediation Role Of Profitability In The Relationship Between Corporate Social Responsibility Disclosure And Stock Returns: Evidence From Indonesia
    IPSC
    EAI
    DOI: 10.4108/eai.10-10-2023.2342193
Lisa Sri Apriani Putri1,*, Jaja Suteja1, Erik Syawal Alghifari1, Ellen Rusliati1, Bayu Indra Setia1
  • 1: Universitas Pasundan
*Contact email: lisasriaprip@gmail.com

Abstract

This study aims to determine the effect of disclosure of corporate social responsibility on stock returns through profitability in ESG Leaders companies listed on the Indonesia Stock Exchange. The sample in this study was obtained using the purposive sampling method for ESG Leaders companies listed on the Indonesia Stock Exchange in 2019–2021, so a sample of 17 companies or around 51 observations was obtained. Based on the results of research according to Common Effect (CEM) with GLS, (1) there is a positive relationship between CSR disclosure and profitability. (2) There is a positive relationship between profitability (ROA) and stock return. (3) There is no relationship between CSR disclosure and share returns at ESG Leaders index companies for 2019–2021. Furthermore, (4) profitability is able to mediate the effect of CSR disclosure on stock returns for ESG Leaders index companies for 2019–2021.