Revisiting the Effect of Financial Elements on Stock Performance Using Corporate Social Responsibility Cost Growth

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 1; pp. 767 - 780
• Main Authors: JOUHA, Faraj, ALBAKAY, Khalleefah, GHOZALI, Imam, HARTO, Puji
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 30.01.2021; Korea Distribution Science Association
• Subjects: Company Performance; CSR; Indonesia Stock Exchange (IDX); Stock Performance; Financial Performance
• ISSN: 2288-4637; 2288-4645

The purpose of this research is to analyze the effect of financial elements (asset growth, liability growth, equity growth, revenue growth, and profit growth) on stock price performance and to analyze the growth of Corporate Social Responsibility (CSR) costs as a moderating effect. The technique analysis used is regression analysis. Samples in this analysis are manufacturing firms listed on the Indonesian Stock Exchange (IDX) for the period 2014-2018. The use of regression models for hypothesis testing must fulfill several applicable assumptions such as Normality Test, Heteroscedasticity Test, Multicollinearity Test, Autocorrelation Test, Model Fit Test, Determination Coefficient Test, and Hypothesis Test. Data analysis used two research models, namely model 1 and model 2. Model 1 is without the moderating variable, and model 2 is with the moderating variable, that is, CSR cost growth. Based on the result of the regression analysis, it can be inferred that the asset, revenue, and profit growth have a positive impact on stock price results. Liabilities and equity growth do not affect stock price performance. Operating expense growth has a significant effect on price performance. CSR cost growth can moderate the effect of growth in financial statement elements on stock price performance but is not significant.