THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY, FIRM SIZE, LIQUIDITY, AND LEVERAGE ON PROFITABILITY

Abstract

This research investigates how corporate social responsibility (CSR), firm size, liquidity, and leverage affect profitability in manufacturing firms listed on the Indonesia Stock Exchange. Using a purposive sampling approach, data was gathered from 22 manufacturing companies over a three-year period, from 2021 to 2023. CSR was assessed based on the GRI 2021 standards, while firm size was evaluated through the natural logarithm of total assets. Liquidity was measured by the ratio of current assets to current liabilities, and leverage was calculated using the ratio of total debt to total equity. Profitability was determined using the Return on Assets (ROA) metric. The analysis was performed with SPSS 26 software employing multiple linear regression techniques. The findings reveal that only the leverage variable significantly impacts profitability, whereas CSR, firm size, and liquidity do not show a significant effect.