Effect of Corporate Social Responsibility and Firm Life Cycle on Banking Performace in Indonesia
Keywords:
Bank Peformance, Corporate Social Responsibility, Firm Life Cycle
Abstract
The study aims to analyze the effect of (1) of Corporate Social Responsibility on banking performance, (2) Firm life cycle on banking performance and (3) Corporate Social Responsibility on every firm life cycle with banking performance proxies listed on the Indonesia Stock Exchange in 2018-2020. The study used two control variables: firm size and economic condition. The population in this study is all banking companies listed on the Indonesia Stock Exchange. While the samples in the study were determined by the purposive sampling method, the banking company's samples for three consecutive years from 2018-2020, resulting in a samples count of 34 companies with 93 observations for each variable. The analysis method used is multiple linear regression analysis using the IBM SPSS Statistics 26 program.
The results of this study concluded that (1) Corporate Social Responsibility using GRI standard has no significant effect on banking performance proxies, (2) Firm life cycle with RETE ratio has a significant effect on banking performance proxies, (3) Firm life cycle can not moderate the influence of CSR on the banking performance
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References
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Brigham, Eugene F. dan Houston, Joel F. 2011. Dasar-dasar Manajemen Keuangan Terjemahan. Edisi 10. Jakarta: Salemba Empat.
Cohen, J. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (Vol. 3rd). London; Mahwah, N.J: L. Erlbaum Associates.
Cameron S. Kim and Quinn E. Robert, Diagnosing and Changin Organizational Culture : Based on the Competing Values Framework, Third Edition (San Fransisco : Joh Wiley & Sons, Inc., 2006,2011)
Dickinson, V., 2011. Cash flow patterns as a proxy for firm life cycle. Account. Rev. 86, 1969–1994.
Dowling, J. and Pfeffer, J. 1975. Organizational Legitimacy: Social Values And Organizational
Felisia.2011. Pengukuran kinerja keuangan dengan pendekatan Economic-Value Added dan Financial Value Added .Bina Ekonomi Majalah Ilmiah: Fakultas Ekonomi UNPAR.
Freeman, R. E. 1984. Strategic Management: A Stakeholder Approach, Boston, Pitman.
Ghozali, Imam. 2018. Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitaas Diponegoro: Semarang
GRI. 2016. Sustainability Reporting Guidelines. www.globalreporting.org. Diakses September-November 2021
Hasan, M. M., & Habib, A. (2017). Corporate life cycle, organizational financial resources and corporate social responsibility. Journal of Contemporary Accounting and Economics, 13(1), 20–36.
Hery. 2014. Akuntansi Dasar 1 dan 2. Jakarta: Kompas Gramedia
Hery. 2016. Analisis Laporan Keuangan. Jakarta: Grasindo.
Horngren, Charles, T. 2012, Akuntansi Biaya, Jilid 1, Edisi ke 12, Jakarta: Erlangga
Indriantoro, Nur., dan Supomo, Bambang. (2018). Metodologi Penelitian Bisnis Untuk Akuntansi & Manajemen. Yogyakarta: BPFE.
Jensen, M., C., dan W. Meckling, 1976. “Theory of the firm: Managerial behavior, agency cost and ownership structure”, Journal of Finance Economic 3:305- 360
Kasmir. 2010. Dasar-dasar Perbankan.Jakarta: PT. Raja Grafindo Persada.
Kasmir. 2013. Bank dan Lembaga Keuangan Lainnya. Jakarta: PT Raja Grafindo Persada
Kasmir. 2016. Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada
Lanis, R. and G. Richardson. 2013. “Corporate Social Responsibility and Tax Aggressiveness: a test of legitimacy theory” . Accounting Auditing and Accountability Journal, Vol. 26 No 1, pp.75-100.
Maqbool, Shafat dan M. Nasir Zameer. 2018. Corporate Social Responsibility and Financial Performance: An Empirical Analysis of Indian Banks. Future Business Journal. 4: 84-93.
Nouaili, M., Abaoub, E., & Ochi, A. 2015. The Determinants of Banking Performance in Front of Financial Changes: Case of Trade Banks in Tunisia. International Journal of Economics and Financial Issues, 5(2), 410-417.
Ong, Tze San, Boon Heng Teh, Sin Huei Ng, dan Wei Ni Soh. 2016. Environmental Management System and Financial Performance. Institutions and Economies Vol. 8, No. 2
Prasetyo, Agung., Wahyu Meiranto. 2017. Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Manufaktur Yang Terdaftar Di Bei Tahun 2013 – 2015. Journal Of Accounting. Vol 6. No. 3. Hal 1. ISSN (online): 2337-3806.
Prior, D. et al. 2008. Are Socially Responsible Managers Really Ethical?. Exploring the Relationship Between Earnings Management and Corporate Social Responsibility. Journal Compilation Vol 16 No 3, May.
Purwanto, A. 2011. Pengaruh Tipe Industri, Ukuran Perusahaan, Profitabilitas, Terhadap Corporate Social Responsibility. Jurnal Akuntansi & Auditing, 8 (1):1-94
Quazi, A., & Richardson, A. (2012). Sources of Variation in Linking Corporate Social Responsibility and Fnancial Performance. Social Responsibility Journal, 242-256.
Reverte, C. 2009. Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms. Journal of Business Ethies, 88, pp: 351-366
Scott, Wiliam R. (2015). Financial Accounting Theory Sevent Edition. United States: Canada Cataloguing.
Sekaran & Bougie, (2016). Research Methods for Business : A Skill Building Approach Seventh Edition. United States of America : Wiley
Spence, Michael. 1973. Job Market Signaling. The Quarterly Journal of Economics, Vol. 87, No. 3. (Aug., 1973), pp. 355-374.
John, J.Wild, Subramanyam, K.R.,Robert F. Halsey.2005. Financial Statement Analysis. 8 th edition. Buku 2. Diterjemahkan oleh: Yanivi S. Bachtiar dan S.Nurwahyu Harahap, Jakarta: Salemba Empat.
Zhao, T., & Xiao, X. (2019). The impact of corporate social responsibility on financial constraints: Does the life cycle stage of a firm matter? International Review of Economics and Finance, 63(August 2018), 76–93.
