2022•European Journal of Business Management and ResearchOpen access

The Effect of Corporate Social Responsibility on Return on Assets, Return on Equity, and Net Profit Margin: Study of Food and Beverage Sub-Sector Companies Listed in the Indonesia Stock Exchange, 2016-2021

Nurdiana Ningsih, Alimuddin Alimuddin, Nadhirah Nagu, Afdal Madein

Open full text 6 citations

Abstract

This study aims to analyze the effect of corporate social responsibility (CSR) on financial performance, which is proxied by the ratios of return on assets (ROA), return on equity (ROE), and net profit margin (NPM). This study examined thirty populations of food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2016–2021. The sampling technique used was a non-probability sampling technique using purposive sampling, so that of the thirty listed companies, six companies met the sampling criteria. To analyze the data, simple linear regression analysis was used using SPSS 23 software. The results showed that: (1) corporate social responsibility has a positive and significant effect on return on assets; (2) corporate social responsibility has a positive and significant effect on return on equity; and (3) corporate social responsibility has no significant effect on net profit margin.

Open-access reader

About this research paper

What this paper is about

This study aims to analyze the effect of corporate social responsibility (CSR) on financial performance, which is proxied by the ratios of return on assets (ROA), return on equity (ROE), and net profit margin (NPM). This study examined thirty populations of food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2016–2021. The sampling technique used was a non-probability sampling technique using purposive sampling, so that of the thirty listed companies, six companies met the sampling criteria. To analyze the data, simple linear regression analysis was used using SPSS 23 software. The results showed that: (1) corporate social responsibility has a positive and significant effect on return on assets; (2) corporate social responsibility has a positive and significant effect on return on equity; and (3) corporate social responsibility has no significant effect on net profit margin.

Why it matters

OpenAlex reports 6 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This study aims to analyze the effect of corporate social responsibility (CSR) on financial performance, which is proxied by the ratios of return on assets (ROA), return on equity (ROE), and net profit margin (NPM). This study examined thirty populations of food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2016–2021. The sampling technique used was a non-probability sampling technique using purposive sampling, so that of the thirty listed companies, six companies met the sampling criteria. To analyze the data, simple linear regression analysis was used using SPSS 23 software. The results showed that: (1) corporate social responsibility has a positive and significant effect on return on assets; (2) corporate social responsibility has a positive and significant effect on return on equity; and (3) corporate social responsibility has no significant effect on net profit margin.

Key concepts: Return on equity, Return on assets, Profit margin, Corporate social responsibility, Stock exchange, Nonprobability sampling, Business, Net profit

Related papers

Back to paper searchBrowse research topicsOriginal source
The Effect of Corporate Social Responsibility on Return on Assets, Return on Equity, and Net Profit Margin: Study of Food and Beverage Sub-Sector Companies Listed in the Indonesia Stock Exchange, 2016-2021 — Research Paper | ScholarLens