The Effect Of Profitability And Leverage On Disclosure Of Corporate Social Responsibility In Companies Listed In LQ-45 On The Indonesia Stock Exchange For The 2014-2018 Period

  • Yenti Maulana Indah Institut Bisnis dan Informatika Kesatuan, Bogor
  • I Gede Sudi Adnyana Institut Bisnis dan Informatika Kesatuan, Bogor
Keywords: Profitability, Leverage, Corporate Social Responsibility



The main purpose of the establishment of a business entity is to achieve business survival in the future, in this
case, company management must be able to manage the company well including financial and non-financial
aspects. Business activities that are only profit oriented without regard to society, society and the environment
can have a negative impact on society and the environment itself. Such as the emergence of global warming, forest
destruction, damage to the location of work areas, water pollution caused by production waste, air pollution or
factory pollution, and so forth. Given this, it is important for companies to participate in maintaining and caring
for the aspects of society and the environment in which the company operates. This concept developed into the
term Corporate Social Responsibility (CSR), which encouraged the business world to be more ethical in carrying
out its activities so as not to adversely affect society and the environment. This study aims to analyze the effect
of profitability and leverage on disclosure of Corporate Social Responsibility (CSR) in companies listed in LQ45


by Return on Assets (ROA), leverage as an independent variable is proxied by Debt to Assets Ratio
(DAR), while disclosure of Corporate Social Responsibility as the dependent variable is proxied by the Global
Reporting Initiatives (GRI). The population in this study are companies listed in the LQ-45 2014-2018 period.
The sample selection method is the purposive sampling method. A total of 10 companies were used as research
samples for 5 years. The data in this study were obtained through the website to gain annual
financial reports and through the company's website to obtain sustainable reports of the company. Hypothesis
testing in this study uses multiple linear regression methods. The results of the analysis show that partially
profitability and leverage variables have a significant positive effect on CSR disclosure in companies listed in
LQ-45 on the IDX. The Adjusted R Square value is 0.540 or 54% which indicates that the amount of CSR
disclosures listed in the LQ-45 on the IDX in the 2014-2018 period is influenced by variables of profitability and
leverage. While 46% of the amount of CSR disclosure is caused by other variables not examined in this study.

Keyword : Profitability, Leverage, Corporate Social Responsibility