The Effect of CSR Disclosure on Financial Performance: Evidence from Indonesian Mining Companies

Abstract

This study aims to analyze the effect of CSR disclosure on the company’s financial performance in the mining companies listed on the IDX for the 2019-2021 period. The sampling method was purposive sampling with 16 sample companies. The dependent variables of the study were profitability (ROA), firm value (Tobin’s Q) and sales growth as the proxies for the company’s financial performance. The independent variable was CSR disclosure (GRI Standard Index 2016) with company size, leverage, and GDP growth as control variables. The panel regression analysis stages were descriptive statistical analysis, estimation models for panel regression, classical assumption tests, and hypothesis testing with the help of Statistic application. The results showed that CSR disclosure has a significant positive effect on profitability and growth, but CSR disclosure has no significant effect on firm value. The company management and investors needs to consider CSR disclosure and the company’s financial performance for investment decisions.