The Impact of Sustainability Practices on Stock Return: The Relationship Between Firm Value, CSR Disclosure, Firm Size and Profitability Evidence from Indonesia Publics Firms Listed on (SRI)-KEHATI Index

Abstract

Corporate Social Responsibility (CSR) projects of companies demonstrate the values and models of corporate governance and emphasize the relationship between business strategy and commitment to a sustainable global economy. Through CSR activities, companies can communicate sustainability performance that ultimately has an impact on its value. This study examines the relationship between CSR disclosure and firm value in Indonesia. The sample consists of Indonesian listed companies listed on (SRI)-KEHATI Index, period 2016-2019. Using multiple regression on the list of CSR disclosure, this study showed that CSR had no significant effect on the value of the firm. Nevertheless, it has been shown that the size of the companies significantly strengthens the effect of CSR on the firm value. In more detail, the size of the company also significantly moderates the dimensions of CSR disclosure. Although profitability does not moderate the effect of CSR on the firm value, including all components of CSR