The Effect of Profitability on Firm Value with Corporate Social Responsibility Disclosure as a Moderating Variable

Abstract

 The assessment of social responsibility and its impact on the company is challenging mathematically 
because it is a qualitative study. This study aimed to examine the effect of profitability as measured by ROA and 
ROE on Tobin's Q firm value and to analyze Corporate Social Responsibility (CSR) in moderating the relationship 
between profitability and firm value. The findings of this research, which is descriptive quantitative and examines 
multiple regression models on independent variables (ROA and ROE) as well as the moderating effect of variables 
(CSR) on firm value (Tobin's Q), have significant implications for the field of corporate governance. The population 
of this study consists of public companies listed on the Indonesia Stock Exchange (IDX) during 2018-2021, with a 
total of 619 issuers. The sample was obtained using a purposive sampling technique for as many as 64 companies. 
The results of this study indicate that ROA does not affect Tobin's Q, while ROE has a positive effect on Tobin's Q. 
CSR cannot strengthen the influence of ROA on Tobin's Q. On the other hand, CSR weakens the influence of ROE 
on Tobin's Q.