THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY AND MANAGERIAL OWNERSHIP ON FIRM VALUE WITH PROFITABILITY AS A MODERATING VARIABLE (Empirical Study on manufacturing Firm In Indonesia Stock Exchange)

Abstract

The purpose of this study was to determine: (1) the effect of CSRon firm value, (2) the effect of  managerial ownershipon firm value,(3) the effect of CSRon firm value with profitability as a moderating variable, and (4) the effect of managerial ownershipon firm value with profitability as a moderating variable. The value of the firm will make the market believes in the firm's performance, the better the firm’s value, then the better the performance of a firm. Good performance will be responded by the increasing of investment and on the other hand, bad performance will have an impact to the decreasing of investment. The statement is supported by the report of IHSG which records that there are 120 pressured stocks, 52 rising stocks, and 85 other lodged stocks. The situation causes the foreign investors release their stocks in Indonesia.

The method used is the a purposive sampling method. The sample of this study is the annual report of the manufacturing firm listed in BEI in a period of 2013-2015.There are 30 firms qualified as research sample. The data analysis used is descriptive analysis continued by test requirements included normality test, multicolinearity test, heteroscedasticity test, and autocorrelation test.The hypothesis test used mutliple regression analysis.

The results of this study showed that : (1) CSR does not effect on firm value, (2) management ownership has effect on firm value, (3) Profitability as a moderating variable cannot moderate the effect of CSRon firm value, (4) Profitability as a moderating variable is able to moderate the effect of managerial ownershipon firm value

Keywords: CSR, managerial ownership, Firm Value, Profitability,