The Influence of Corporate Social Responsibility and Institutional Ownership on Profitability and Firm Value

Esti Julia Irawan; Ary Yunanto; Retno Kurniasih

The Influence of Corporate Social Responsibility and Institutional Ownership on Profitability and Firm Value

Esti Julia Irawan, Ary Yunanto, Retno Kurniasih

Abstract

This study examines the effect of Corporate Social Responsibility and Institutional Ownership on Profitability and Firm Value. This study uses companies in the mining sector listed on the Indonesia Stock Exchange for 2017 to 2021. This research uses the purposive sampling method. Based on the results of the analysis of panel data using EViews, it shows that: (1) corporate social responsibility has no effect on profitability, (2) institutional ownership has no effect on profitability, (3) corporate social responsibility has a positive effect on firm value, (4) institutional ownership has a positive effect on firm value. The implication of the results of this study is that mining companies can manage the company and in the implementation of corporate social responsibility in a sustainable manner that can have a good influence on increasing company value. In addition, the corporate social responsibility program also has a positive impact on the company in attracting investors to buy company shares which in the future will increase the value of the company.

Keywords: Corporate Social Responsibility, Institutional Ownership, Profitability, Firm Value.

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