An Analysis on the Influence of Profitability, Firm Size, Liquidity, and Leverage on the Expression of Firm’s Social Responsibility in Banking Companies Listed in BEI (Indonesian Stock Exchange)

Journal Title: International Journal of Research and Review - Year 2018, Vol 5, Issue 9

Abstract

The objective of the research was to examine and analyze the influence of financial factors (the ratio of profitability, firm size, liquidity, and leverage) on the expression of firm’s social responsibility in banking companies listed in BEI (Indonesia Stock Exchange). The population was 28 banking companies listed in BEI in the period of 2012-2016, and all of them were used as the samples. The data were analyzed by using multiple linear regression analysis with software e-views 7. The result of the research showed that, simultaneously, financial factors (profitability ratio, firm size, liquidity, and leverage) had significant influence on the expression of firm’s social responsibility. Partially, the ratio of firm size and leverage of financial factors had significant influence on the expression of firm’s social responsibility, while the variables of profitability and liquidity had significant influence on the expression of firm’s social responsibility. Determination value was 75.559% which indicated that the variables of the ratio of profitability, firm size, liquidity, and leverage had the influence on the expression of firm’s social responsibility simultaneously at 75.559%, while the remaining 24.441% were influenced by other factors excluded from the research variables.

Authors and Affiliations

Amir Hamzah Nasution

Keywords

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  • EP ID EP482136
  • DOI -
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How To Cite

Amir Hamzah Nasution (2018). An Analysis on the Influence of Profitability, Firm Size, Liquidity, and Leverage on the Expression of Firm’s Social Responsibility in Banking Companies Listed in BEI (Indonesian Stock Exchange). International Journal of Research and Review, 5(9), 92-105. https://www.europub.co.uk/articles/-A-482136