ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY EFFECT TO FIRM’S VALUE: THE STUDY CASE ON MANUFACTURING COMPANIES OF INDUSTRY MINING SECTOR LISTED ON INDONESIA STOCK EXCHANGE

Abstract

This research aims to analyze whether there is an influence of Corporate Social Responsibility and profitability on the value of company in manufacturing company’s basic industry mining sector that are listed on Indonesia Stock Exchange. Corporate Social Responsibility is measured by GRI 4, the profitability is substituted by Return to Assets, and company’s value is substituted by Tobin’s Q. The type of this research is quantitative. The population used in this study is manufacturing companies in mining sector listed on Indonesia Stock Exchange in 2016 totaling 36 companies. The data analysis techniques used in the study are multiple regression analysis and hypothesis testing using Eviews. The result of this study indicates that Corporate Social Responsibility has significant influence on value of company, profitability has a significant influence on value of company, and both independent variables simultaneously have a significant effect towards the value of company.