Research Paper
Year: 2018 | Month: September | Volume: 5 | Issue: 9 | Pages: 92-105
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)
Amir Hamzah Nasution1, Erlina2, H.B.Tamizi2
1Postgraduate Students Department of Economics and Business at University of North Sumatera, Indonesia
2Postgraduate Lecturer Department of Economics and Business at University of North Sumatera, Indonesia
Corresponding Author: Amir Hamzah Nasution
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.
Key words: Expression of Firm’s Social Responsibility, Profitability, Firm Size, Liquidity, Leverage
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