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Book part
Publication date: 4 May 2018

Ghazali Syamni, Wahyuddin, Damanhur and Ichsan

Purpose – The purpose of this study is to examine the effect of corporate social responsibility (CSR) on profitability in agricultural sector companies, especially the…

Abstract

Purpose – The purpose of this study is to examine the effect of corporate social responsibility (CSR) on profitability in agricultural sector companies, especially the agricultural sub-sector in the Indonesia Stock Exchange (IDX). These sub-sectors are designated as one sub-plantation group with one value and another valuable sub-sector. This study uses secondary data of financial statements for the period 2015–2016 accessed on the following website: www.idx.co.id.

Design/Methodology/Approach – The data analysis method used in this research, using dummy regression method with an independent variable, is called Corporate Social Responsibility (CSR); Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) are used as dependent variables. Besides this, this study included a sub-sector variable in agricultural sector as a dummy variable.

Findings – This study found that the ability to explain CSR is greater by the ROE on plantation companies. These findings indicate that CSR has a signal for investors when investing in capital markets.

Research Limitations/Implications – This study had restrictiveness in model that was used only profitability ratio as an independent variable. This study also used during a two-year period. Alongside that, the next study is needed to search in other sectors by entering a sector variable as a dummy variable.

Practical Implications – Implementation of CSR was a solution for company to repair organizational and financial performance. So, Properly Company Management uncertainly implement CSR on their environment.

Originality/Value – All sub-sectors in agriculture in the IDX did not have different viewpoints for the implementation of a CSR program to their environment.

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Proceedings of MICoMS 2017
Type: Book
ISBN:

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Book part
Publication date: 14 May 2018

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Corporate Social Responsibility
Type: Book
ISBN: 978-1-78754-260-0

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Book part
Publication date: 23 May 2022

Agostino Vollero

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Greenwashing
Type: Book
ISBN: 978-1-80117-966-9

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Book part
Publication date: 14 September 2020

Virginia Munro

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CSR for Purpose, Shared Value and Deep Transformation
Type: Book
ISBN: 978-1-80043-035-8

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Book part
Publication date: 14 January 2019

Morgan R. Clevenger and Cynthia J. MacGregor

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Business and Corporation Engagement with Higher Education
Type: Book
ISBN: 978-1-78754-656-1

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Book part
Publication date: 10 August 2018

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Sustainability, Stakeholder Governance, and Corporate Social Responsibility
Type: Book
ISBN: 978-1-78756-316-2

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Book part
Publication date: 12 September 2022

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Empirical Research in Banking and Corporate Finance
Type: Book
ISBN: 978-1-78973-397-6

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Book part
Publication date: 23 May 2017

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Stakeholder Management
Type: Book
ISBN: 978-1-78714-407-1

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Book part
Publication date: 11 October 2019

Lukasz M. Bochenek

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Advocacy and Organizational Engagement
Type: Book
ISBN: 978-1-78973-437-9

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Book part
Publication date: 21 August 2019

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Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-78973-285-6

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Book part (337)
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