Corporate Social Responsibility and Firm Value: The Mediating Role of Profitability in Indonesia’s Consumer Non-Cyclicals Sector
A. Mustika Amin *
Faculty of Economics and Business, Makassar State University, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: This study seeks to examine the impact of Corporate Social Responsibility on company value, with profitability serving as a mediating variable, in Consumer Non-Cyclicals sector companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2025.
Study Design: This study employs a quantitative methodology utilizing an associative causal approach.
Place and Duration of Study: Consumer Non-Cyclicals sector companies listed on the IDX from 2021 to 2025, from November to December 2025.
Methodology: During the observation period (November to December 2025), data was collected by utilizing documentation methods to analyze the financial statements and sustainability reports of 6 companies in the non-durable domestic products subsector. The employed data analysis technique is path analysis, utilized to examine both direct and indirect correlations among variables, including the assessment of profitability's mediating influence.
Results: The research findings demonstrate that CSR affects firm value directly (t value = 2.147, Sig = 0.041< 0.05) rather than through profitability (t value = 0.386, Sig = 0.702 > 0.05). Profitability positively and significantly influences business value (t value = 3.611, Sig = 0.001 < 0.05); however, it does not mediate the relationship between CSR and firm value.
Conclusion: This outcome suggests that corporate social responsibility initiatives exert a more immediate influence on enhancing business value than through augmented profitability.
Keywords: Return on assets, price to book value, non-cyclicals sector, IDX