Best Journal of Administration and Management (BEJAM)

Vol. 1, No. 1, July 2022.

ISSN: 2964-657X

Effect Of Financial Performance On Company Value With

Corporate Social Responsibility As Moderating Variable
Rahmatika Nuuril Imaama1, Nur Fadjrih Asyik2, Bambang Suryono3
1,2,3 Indonesian College of Economics (STIESIA) Surabaya, Indonesia

Article Info ABSTRACT

Article history: This study aims to examine the effect of financial performance as
measured by the Current Ratio (CR), Quick Ratio (QR), and Return
Received August 13, 2022 On Investment (ROI), on firm value (PBV) with Corporate Social
Revised August 20, 2022 Responsibility (CSR) as moderating. This type of research is
Accepted August 21, 2022) quantitative research. The sample in this study was obtained using a
purposive sampling method, namely the selection of a sampling with
Corresponding Author:
certain criteria. Based on the purposive sampling method, 261 samples
Rahmatika Nuuril Imaama, were obtained from 87 manufacturing companies listed on the
Indonesian College of Economics Indonesia Stock Exchange (IDX) for the 2018-2020 period. The
(STIESIA), Surabaya, Indonesia analytical method used is multiple linear regression analysis and
Email: Moderated Regression Analysis (MRA) Interaction Test with SPSS 25
[email protected] tool. The results show that: 1) Current Ratio (CR) has a negative effect
on firm value, 2) Quick Ratio (QR) has an effect on positive effect on
firm value, 3) Return On Investment (ROI) has a positive effect on
firm value, 4) Corporate Social Responsibility (CSR) is able to
moderate the effect of Current Ratio (CR) on firm value, 5) Corporate
Social Responsibility (CSR) is not able to moderate the effect of Quick
Ratio (QR) on firm value, 6) Corporate Social Responsibility (CSR) is
able to moderate the effect of Return On Investment (ROI) on firm
value.

Keywords: Financial Performance, Company Value, Corporate Social

Responsibility.

1. INTRODUCTION

In this era of globalization, the development of the business world is growing very rapidly. This can also
be seen with the development of science and the development of information in Indonesia with the intense
business competition. This business competition must be balanced with the existence of critical or logical
thinking and utilizing good resources. Thus, companies in business can compete with other companies both
domestically and abroad. Then, so that this company can be assessed as good, what must be done is a company
that can present financial statements. The financial statements that can see how the condition of a company.
Therefore, the management of financial statements must be considered properly and efficiently because these
financial problems are very important for the company's sustainability in the future.

Company value is an important thing in the company because it is directly related to the welfare of
stakeholders. Companies that can survive and continue to grow will have good value in the eyes of investors
so that these stakeholders have confidence in investing the capital they have in the company, if the company
can achieve a goal or target in increasing the profits that have been generated, then the value of the company
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https://internationalpublisher.id/journal/index.php/Bejam
will increase. Thus, the value of the company affects the development and reduction of economies of scale.
The value of the company can also be seen from the level of welfare of its shareholders. If the shareholders
show prosperity and are in good condition, it can be ascertained that the value of the company is high and can
be said to be able to maximize share prices. High stock prices make the value of the company will also be high.
Company value is usually indicated by price to book value. A high price to book value will make the market
believe in the company's future prospects. This is also what the owners of the company want, because a high
company value indicates the prosperity of shareholders is also high.

According to Anwar et al (2016) stated that "one of the things that can affect the value of the company is
financial performance. Financial performance is a decision made continuously by the management to achieve
a certain goal. In this study, financial performance is proxied by the liquidity ratio (current ratio), quick ratio,
and ROI. The liquidity ratio in the Current Ratio (CR) and Quick Ratio (QR) in increasing the value of the
company can provide an overview of the company's ability to meet short-term obligations, where the greater
the percentage in CR and QR, the company has a good liquid level, so that in provide a positive response to
the condition of the company's financial performance and improve the good image of the company's value in
the eyes of investors. While the quick ratio according to Kasmir (2014:131) that "the quick ratio describes the
company's ability to pay short-term obligations using more liquid assets. The greater the value of the quick
ratio, the faster the company will fulfill all its obligations. measure of financial performance in investing. Apart
from being a measuring tool for financial performance, the value of the company can also be maximized by
implementing several supporting programs related to the reciprocal relationship between the company and the
surrounding community.

Corporate Social Responsibility is often considered as a company that has the responsibility of a company.
So it does not only have responsibility for the obligations of shareholders but also obligations to other interested
parties (stakeholders). Corporate Social Responsibility as part of the business strategy that has been set to
support the survival of the company in the future. By implementing CSR, the company is expected to be able
to maximize its financial performance in the long term. According to Hill's research (2014) found the fact that
"companies that have CSR responsibilities experience a significant increase in share prices compared to
companies that do not carry out CSR". Awareness of the company's sustainability in the long term is more
important than company profits. In the process of running a business, a company is required to have a strategy
by attending and developing a strategy to get profit for a long period of time. Profit in the long term can be
obtained if the existence of the company brings many benefits and gets support from its stakeholders.

2. LITERATUR REVIEW

a. Signaling Theory
According to Supriyono (2018: 63) in his book states that "Signal theory describes a company's urge to
provide information about financial reports to internal and external parties and advance the company's survival.
This impulse occurs because of information between external parties and management, which The information
here is caused by companies that provide a lot of information on the company's prospects in the future,
including from outside parties, namely investors and creditors, with the lack of information obtained from
outside parties, making them provide low prices for the company. Signal theory in the form of information that
has been carried out by management in realizing the wishes of investors. This signal illustrates that the company
is better than other companies.

b. Stakeholder Theory
The introduction of the scope of the company's organization that has developed at this time with a
management system approach has changed the perspective of managers and experts, especially about what
efforts can be made to support the achievement of company goals effectively and efficiently. Especially with
the organizational shift in the business world as well as shareholders to stakeholders. And this cause arises an
issue of corporate responsibility to these stakeholders. According to Freeman (in Chandra, 2011) explains that
"stakeholder theory is the relationship between management theory and business ethics that considers morals
and values in managing an organization, and there is from previous research, that this recognition of
stakeholders holds commitments outside the shareholders (stakeholders). that affect the effectiveness of

41
achieving a company's goals by changing a system of corporate social responsibility to socio-economic
responsibility which is solely to maximize profits.

c. Financial performance
According to Mulyadi (2010:136) states if "standard financial performance can be in the form of
management policies or policy plans as outlined in the budget". Meanwhile, according to Suta (2012:112)
argues that "company performance is divided into two, namely operational performance and financial
performance. Operational performance is the periodic determination of the company in the form of operational
activities, organizational structure, and employees". Based on predetermined standards and criteria, according
to Ang (2010:29) "the financial ratio is directly related to the interests and performance analysis of financial
statements, namely profitability ratios (ROA, ROI, and ROE)". In this study, the reference is return on
investment which is used as a measuring tool in performance appraisal. In addition, according to Ang (2010:30)
"financial performance can be used as an evaluation of things that companies need to do in the future so that
performance management can be improved or maintained in accordance with company targets.

d. Understanding Corporate Social Responsibility

According to Hadi (2019), "CSR is the commitment of business people to uphold the principles of business
ethics in operating, and to make a good contribution to the sustainability of the company's life, as well as to
support the improvement of the living standards and welfare of the workers, including improving the quality
of life of the surrounding community". Thus, CSR is an action taken by a company with a sense of corporate
responsibility towards social and environmental issues in which the company is located. CSR itself is also often
used as a strategic phenomenon used by companies to meet the needs and interests of stakeholders. It has been
explained previously According to Elkington (2007) that “This CSR has an awareness of the long-term
sustainability of the company rather than just the profit of the company's investment. In running its business,
the company must have a strong strategy and its priorities, the company's priorities such as profit in the long
term, can be obtained in the long term if the company's existence supports stakeholders.
for understanding the scope can be divided into six parts, namely:

1) The value of the company

Firm value is said to be market value, as research on Nurlela and Islahudin (2010) states if "company value
can provide maximum shareholder welfare if the company's share price increases. The higher the share price,
the higher the shareholder welfare. capital companies can hand over their management assets to managers. To
find out indications of past investor assessments and future prospects, the ratio used for firm value is PBV
(Price Book Value). This PBV ratio has a function as a comparison of the market value of a company's stock
to the book value so that it can measure the level of stock prices whether it is overloaded or undervalued. PBV
also gives a signal to investors whether the price paid or invested in the company is too high or not with the
company's assumptions. Because if the company declines, then its main obligation to pay debts first, and the
remaining assets (if any) are distributed to shareholders.

2) Current Ratio (Current Ratio)

According to Kasmir (2014: 130) "Current Ratio shows the extent to which the ability of current assets
owned by the company to cover all current liabilities that must be paid at maturity". The formula for measuring
the Current Ratio is as follows:
CR= (Current Assets)/(Current Liabilities) x 100%

3) Quick Ratio
According to Kasmir (2014:131) "Quick Ratio is the company's ability to pay short-term obligations by
using more liquid assets. This Quick Ratio only compares the more liquid assets with current liabilities”. The
formula for measuring the Quick Ratio is as follows:
QR= (Current Assets-Inventory)/(Current Liabilities) x 100%

4) Profitability

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Profitability is a company to increase profits or profits generated, in this case profitability is a measure that
shows the comparison between profits and assets used in generating company profits (Sartono, 2010:122). In
this study, the ratio used to measure profitability is Return on Investment (ROI). To achieve the goal, it is
necessary to carry out an effective and efficient management process

The formula for ROI itself is:

ROI= (Net Profit After Tax)/(Total Assets) x 100%

3. RESEARCH METHOD

In this study, researchers used a quantitative approach. The source of data used is secondary data, in the
form of financial statements of manufacturing companies listed on the BEI. The population in this study are
all manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. The sampling technique
used is a purposive sampling technique, namely the selection of a sampling with certain criteria. Based on the
purposive sampling method, 261 samples were obtained from 87 manufacturing companies listed on the
Indonesia Stock Exchange (IDX) for the 2018-2020 period.

Current Ratio (CR)

The value of the

Quick Ratio (QR) company (PBV)
qUI
Return on
Investment (ROI)

Corporate Social
Responsibility (CSR)

Image 1
conceptual framework
Hypothesis Development :
1. H1: Current Ratio positive effect on firm value.
2. H2: Quick Ratio (QR) positive effect on firm value.
3. H3: Return on Investment (ROI) positive effect on firm value.
4. H4: Corporate Social Responsibility strengthen the influence of the current ratio on firm value.
5. H5: Corporate Social Responsibility strengthen the effect of the quick ratio on firm value.
6. H6: Corporate Social Responsibility strengthen the effect of return on investment on firm value.
4. RESULTS AND ANALYSIS

a. Descriptive statistics

Table 3
Descriptive statistics
N Minimum Maximum Mean Std. Deviation
PBV 261 ,12 60,67 2,7560 6,38106
CR 261 ,00 208,44 3,6059 12,98491
QR 261 -3,74 175,36 2,5518 10,91456
ROI 261 ,00 ,92 ,0769 ,08935
CSR 261 ,01 ,81 ,3061 ,21005
Valid N (listwise) 261
Source: Secondary Data 2018 -2020, processed.

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 Based on descriptive analysis, firm value as measured by PBV shows that during the research period this
variable has a minimum value of 0.12 or 12%. And the maximum value is 60.67 or 60%. with an average value
of 2.7560 or 275%. While the standard deviation of 6.38106 means that the data in this study varies because
the standard deviation value is greater than the mean. Furthermore, the variable current ratio (CR) in this
variable has a minimum value of 0.00 and a maximum value of 208.44, with an average value of 3.6059. Based
on the results of descriptive statistics, the CR value in this study is said to be good, because normally the ideal
current ratio value for the company is 200%-250 %. And the standard deviation of 12,98491 means that the
data in this study varies because the standard deviation value is greater than the mean. Then the quick ratio
(QR) variable has a minimum value of -3.74. And the maximum value is 175.36, with an average value of
2.5518 or 255%, and a standard deviation of 10.91456, meaning that the data in this study varies because the
standard deviation is greater than the mean.

Furthermore, the return on investment (ROI) variable has a minimum value of 0.00 and a maximum value
of 0.92 or 92%, with an average value (mean) of 0.3061. and the standard deviation of 0.08935 means that the
data in this study varies because the standard deviation is greater than the mean. Then the variable level of
disclosure of social responsibility (CSR) has a minimum value of 0.01 or 1% and a maximum value of 0.81 or
81% with an average value of 0.3061 or 30%. While the standard deviation is 0.21005 or 21%, which means
the data in this study is less varied because the standard deviation value is smaller than the mean.

b. Classic assumption test

1). Normality test

Table 2
Kolmogorov-Smirnov Normality Test (Before)
One-Sample Kolmogorov-Smirnov Test
Unstandardized Residual
N 261
Normal Mean 0E-7
Parametersa,b Std. Deviation 4,34719124
Absolute ,229
Most Extreme Positive ,229
Differences Negative -,209

Kolmogorov-Smirnov Z 3,704
Asymp. Sig. (2-tailed) ,000
a. Test distibution is Normal.
b. Calculated from data.
Source: SPSS 25 . output

From the results above, it can be seen that the data are not normally distributed because the Kolmogorov-
Smirnov significance level is <0.05. According to the book Hypothesis Testing Tools (Murniati et al., 2013),
a method that can be used to treat abnormal data was carried out, in this study was carried out by transforming
the data into Natural Logarithms (Ln).
The following are the results of the test again after the data transformation is carried out into logs.

Table 3
Kolmogorov-Smirnov Normality Test (After)
One-Sample Kolmogorov-Smirnov Test
Unstandardized Residual
N 261
a,b Mean 0E-7
Normal Parameters
Std. Deviation ,84659454
Absolute ,043
Positive ,043
Most Extreme Differences
Negative -,035

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 Kolmogorov-Smirnov Z ,697
Asymp. Sig. (2-tailed) ,716
a. Test distribution is Normal.
b. Calculated from data.
Source: SPSS 25 . output

Based on table 3, it can be seen that the test gives a calculated Z value of 0.697 with a significance level
of 0.716. The significance level value is above 0.05 which indicates that the residual value has no difference
with the standard book value. Thus, it can be stated that the data is normally distributed or the assumption of
normality has been met.

Multicollinearity Test
Table 4
Multicollinearity Test
Coefficientsa
Collinearity Statistics
Model Keterangan
Tolerance VIF
1 (Constant)
CR ,340 2,945 Bebas Multikolinearitas
QR ,335 2,989 Bebas Multikolinearitas
ROI ,970 2,989 Bebas Multikolinearitas
CSR ,488 2,048 Bebas Multikolinearitas
CR*CSR ,252 3,964 Bebas Multikolinearitas
QR*CSR ,200 4,999 Bebas Multikolinearitas
ROI*CSR ,744 1,344 Bebas Multikolinearitas
a. Dependent Variable: PBV (Y)
Source: SPSS 25 . output

Based on the results from table 4 above, it can be seen that the calculation results of the tolerance value
for each variable indicate that all independent variables such as CR, QR, ROI, plus the CSR moderating
variable have a tolerance value > 0.10 and a VIF value <10. Therefore, it can be concluded that there is no
multicollinearity in this study.

Heteroscedasticity Test

In Figure 1 above, it can be seen that the residual variance from one observation to another observation
has a certain pattern but some does not have a certain pattern. This unequal pattern is indicated by the unequal
value between the variance of the residuals, the points spread above and below the number 0 on the Y axis, it
can be concluded that in the regression equation in this study there is no heteroscedasticity.

Autocorrelation Test
Table 5
Autocorrelation Test
Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square DW
Estimate
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 1 ,568a ,322 ,312 ,85318 1,097
a. Predictors: (Constant), CR (X1), QR (X2), ROI (X3), CSR (X4), ROI_CSR, CR_CSR, QR_CSR
b. Dependent Variable: PBV (Y)
Source: SPSS 25 . output

From the table, it is known that the autocorrelation test with Durbin-Watson shows a value of 1.097.
The test results are in accordance with the provisions of the absence of autocorrelation, namely the D-W
number between -2 to +2.

Multiple Linear Regression Analysis

Tabel 6
Multiple Linear Regression Analysis Model 1

Unstandardized Standardized
Model Coefficients Coefficients T Sig.
B Std. Error Beta
(Constant) 1,769 ,156 11,332 ,000
CR -,498 ,103 -,436 -4,816 ,000
1
QR ,251 ,118 ,195 2,138 ,033
ROI ,370 ,043 ,460 8,595 ,000

Based on the analysis of table 6 above, the results of the multiple linear regression equation model 1
are obtained as follows:
PBV = 1,769 - 0,498 CR + 251 QR + 0,370 ROI + e

Table 7
Multiple Linear Regression Analysis Model 2

Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
B Std. Error Beta
(Constant) 1,769 ,156 11,332 ,000
CR -,498 ,103 -,436 -4,816 ,000
1
QR ,251 ,118 ,195 2,138 ,033
ROI ,370 ,043 ,460 8,595 ,000
CR*CSR -,377 .096 -,403 -3,932 ,000
QR*CSR ,125 ,107 ,134 1,163 ,246
ROI*CSR ,378 ,042 ,538 9,020 ,000

Based on the analysis of table 7 above, the results of the multiple linear regression equation model 1 are
obtained as follows:
PBV = 1,769 - 0,498 CR + 251 QR + 0,370 ROI – 0,377 CR*CSR +
0,125 QR*CSR + 0,378 ROI*CSR + e

Hypothesis testing (t Test)

Table 10
t Test Result

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 1,769 ,156 11,332 ,000
1
CR -,498 ,103 -,436 -4,816 ,000
46
 QR ,251 ,118 ,195 2,138 ,033
ROI ,370 ,043 ,460 8,595 ,000
CR*CSR -,377 .096 -,403 -3,932 ,000
QR*CSR ,125 ,107 ,134 1,163 ,246
ROI*CSR ,378 ,042 ,538 9,020 ,000
Coefficientsa
a. Dependent Variable: PBV
Source: SPSS 25 . output

1. Testing the first hypothesis or H1 Based on table 10 CR has a regression coefficient value (β) of -0.498
and a t value of -4.816 with a significance probability result of 0.000. Provisions for decision making
whether the hypothesis is accepted or rejected are based on the magnitude of the significance value and
a positive or negative sign on the value of the regression coefficient (β). Based on these results, it can
be said that the significance value is <0.05 and the value (β) is -0.498, so it can be concluded that the
CR variable has a negative effect on PBV, which means that the hypothesis is rejected..
2. Testing the second hypothesis or H2 Based on table 10 QR has a regression coefficient value (β) of
0.195 and a t value of 2.138 with a significance probability result of 0.033. Provisions for decision
making whether the hypothesis is accepted or rejected are based on the magnitude of the significance
value and a positive or negative sign on the value of the regression coefficient (β). Based on these
results, it can be said that the significance value is <0.05, so it can be concluded that the QR variable
has a positive effect on PBV, which means that the hypothesis can be accepted.
3. Testing the third hypothesis or H3 Based on table 10 ROI has a regression coefficient value (β) of 0.370
and a t value of 8.595 with a significance probability result of 0.000. Provisions for decision making
whether the hypothesis is accepted or rejected are based on the magnitude of the significance value and
a positive or negative sign on the value of the regression coefficient (β). Based on these results, it can
be said that the significance value is <0.05, so it can be concluded that the ROI variable has a positive
effect on PBV, which means that the hypothesis can be accepted..
4. Testing the fourth hypothesis or H4 Based on table 10 has a regression coefficient value (β) of -0.377
and a t-value of -3.932 with a significance probability result of 0.000. Provisions for making decisions
on whether the hypothesis is accepted or rejected are based on the magnitude of the significance value
with a significance probability of 0.000, which is <0.05. So it can be concluded that CSR is able to
moderate the effect of CR on firm value (PBV), which means that the hypothesis can be accepted.
5. Testing the fifth hypothesis or H5. Based on table 10, it has a regression coefficient value (β) of 0.125
and a t-value of 1.163 with a significance probability result of 0.246. Provisions for decision making
whether the hypothesis is accepted or rejected are based on the magnitude of the significance value with
the result of a significance probability of 0.246 that is > 0.05. So it can be concluded that CSR is not
able to moderate the effect of QR on firm value (PBV).
6. Testing the sixth hypothesis or H6 Based on table 10 it has a regression coefficient (β) of 0.378 and a t-
value of 9.020 with a significance probability result of 0.000. Provisions for making decisions on
whether the hypothesis is accepted or rejected are based on the magnitude of the significance value with
a significance probability of 0.000, which is <0.05. So it can be concluded that CSR is able to moderate
the effect of ROI on firm value (PBV).

DISCUSSION
a. Effect of Current Ratio (CR) on Firm Value (PBV)
Based on the results of the regression analysis showed that CR showed a t value of -4.816 with a
significance value of 0.000 and a regression coefficient (β) of -0.498. Although the significance value is 0.000
< 0.05, but the regression coefficient (β) is negative, it can be said that the first hypothesis is rejected.
From the average value obtained is 3.6059, which means that the financial condition of a company is in
good condition. According to Riyanto (2012: 332) states that "the ideal current ratio value for the company is
200%-250 %, which means that the current asset value is required to be twice that of current debt. The results
of the study found that an increase in the value of the current ratio was followed by a decrease in stock prices,
while the decrease in the value of the current ratio resulted in an increase in stock prices. For creditors, the
value of current assets available in the company is quite a lot, and is considered good in terms of ensuring the
fulfillment of current debt obligations, but for investors, they have the opposite view, they consider current

47
assets that are widely available in the company, meaning the company is less than optimal in managing
financial resources. owned by the company.
The results of this study are in line with research by Salaanti (2020), and Annisa (2017) which state that
the current ratio (CR) has a significant negative effect on firm value as proxied by PBV. However, contrary to
the results of Hasania, Murni and Mandagie (2016) research which states that the Current Ratio has a positive
impact on firm value.
b. Effect of Quick Ratio (QR) on Firm Value (PBV)

Based on the results of the regression analysis, it shows that QR shows a regression coefficient value
(β) of 0.195 and a t value of 2.138 with a significance probability result of 0.033. Because the significance
value is 0.033 < 0.05, the second hypothesis is accepted.

From the average value obtained is 2.5518 or equal to 255%, which means that the financial condition
of a company is in good condition. When the value of the quick ratio is above 250%, it means that the company's
current assets are able to meet all its current liabilities without taking into account inventory (Sudarto, 2016).
This indicates a sound business financial condition because it is able to pay off all its dependents if needed.
And vice versa, if the average value of the company is below 250%, it means that the company is not able to
complete current dependents that may have to be paid as soon as possible. In this case, the company is at risk
of facing liquidity problems due to poor management of liquid assets. Based on the existing theory, the higher
the QR ratio reflects that the higher the company's ability to meet short-term obligations, this will have an
impact on the large percentage of QR in the company, and it can be said that the company has a good level of
liquidity, so that later it will provide a positive response to the condition of the company's financial performance
and improve the good image of the company's value in the eyes of investors.

The results of this study are also in line with previous research conducted by Mahendra et al. (2012),
Rochmah (2017), and Kusumajaya (2011) which state that liquidity proxied by QR has an effect on firm value
proxied by PBV. However, this is contrary to the research of yufita (2019) which states that liquidity proxied
by QR has no effect on firm value.

b. Effect of Return On Investment (ROI) on Firm Value (PBV)

Based on the results of the regression analysis, it shows that the ROI shows a regression coefficient (β)
of 0.370 and a t-value of 8.595 with a significance probability of 0.000. Because the significance value is 0.000
< 0.05, the third hypothesis is accepted.
From the average value obtained is 0.0769 or equal to 70% which means that the financial condition of
a company is in good condition. Because the investment costs incurred are able to generate a net profit or
income of 10% (Kasmir, 2014). A positive ROI value indicates that the investment made by the company is
profitable, so the higher the ROI value, the better the company's performance in maximizing profitability. This
means that the company has a consistent ROI value that rises every period because it will show bright business
prospects, so that the company can conduct analysis and can take certain decisions into comprehensive
profitability. A high profitability value indicates that the company's performance has been carried out well and
will have an indirect effect on changes in share prices, as well as the prosperity of shareholders.
The results of this study are also in line with previous research conducted by Rochmah (2017), Putra
and Lestari (2016) and Hardian (2016) which stated that Return On Investment had a positive effect on firm
value. However, it contradicts the results of research by Wulandari and Wiksuana (2017) which states that
profitability has an insignificant negative effect on firm value as proxied by PBV.

b. Effect of Current Ratio (CR) on firm value (PBV) with Corporate Social Responsibility (CSR) as the
moderating variable.

Based on the results of the regression analysis showed that the value of the regression coefficient (β)
was -0.377 and the t-value was -3.932 with a significance probability result of 0.000. Because the significance
value is 0.000 < 0.05, the fourth hypothesis is accepted.

The average value obtained is 0.3061 or equal to 30%, indicating that the ratio of CSR disclosure in
Indonesia based on the research sample is quite large. Of the total 91 indicators that become the standard for
disclosure of GRI 4, an average of about 30% has been disclosed in the company's annual report. . According
48
to Kamil and Antonius (2012), the company's ability to meet short-term debt if it is high, then to carry out CSR
it will also require large funds, if the company has funds for the implementation of CSR, it means that the
company has been able to manage funds from creditors properly and can develop the company, so that the
company's performance can increase. The trust of creditors and interested parties in the company will
automatically increase with the disclosure of social responsibility information that has been carried out by the
company.

The results of this study are in line with the results of research conducted by Mahendra (2011) which
states that CSR is able to moderate the effect of the Current Ratio (CR) on firm value.

b. The effect of Quick Ratio (QR) on firm value (PBV) with Corporate Social Responsibility (CSR) as
the moderating variable.

Based on the results of the regression analysis, the value is 0.125 and the t value is 1.163 with a
significance probability result of 0.246. Because the significance value is 0.246 > 0.05, the fifth hypothesis is
rejected.

The average value obtained is 0.3061 or equal to 30%, indicating that the ratio of CSR disclosure in
Indonesia based on the research sample is quite large. Of the total 91 indicators that become the standard for
disclosure of GRI 4, an average of about 30% has been disclosed in the company's annual report. The ability
of companies with high liquidity will be associated with high social disclosure. High liquidity means that the
company has the ability to finance and carry out activities related to social disclosure (CSR). So that companies
are better able to disclose social activities carried out more broadly which have an impact on increasing the
value of the company.

The results of this study are in line with research conducted by Hardian (2016) which states that CSR
does not have a significant impact on the effect of liquidity proxied by CR on firm value.

b. Effect of Return on Investment (ROI) on Firm Value (PBV) with Corporate Social Responsibility
(CSR) as the moderating variable

Based on the results of the regression analysis, the value is 0.378 and the t value is 9.020 with a
significance probability of 0.000. Because the significance value is 0.000 < 0.05, the sixth hypothesis is
rejected.

The average value obtained is 0.3061 or equal to 30%, indicating that the ratio of CSR disclosure in
Indonesia based on the research sample is quite large. Of the total 91 indicators that become the standard for
disclosure of GRI 4, an average of about 30% has been disclosed in the company's annual report. The
relationship between profitability and firm value can be strengthened by the disclosure of CSR. Companies
that have a high level of profitability coupled with good CSR disclosure can produce much better company
values. This indicates that investors in making investment decisions are aware of the information presented by
the company.

The results of this study are also in line with research conducted by Agustin (2019) which states that
"the higher the profitability of a company, the greater the obligation to disclose social information by the
company." The results of this study are also similar to the results of research from Wulandari and Wiksuana
(2017) and Pramana and Ketut (2016) which show that "profitability has a positive effect on firm value and
CSR disclosure is able to strengthen the relationship between profitability and firm value".

5. CONCLUSION

Based on the data analysis and discussion that has been carried out in the previous chapter, therefore the
results of this study can be concluded as follows:
a. Conclusion
1. CR has a negative effect on PBV, thus the first hypothesis is rejected.
2. QR has a positive effect on PBV, thus the second hypothesis is accepted.
3. ROI has a positive effect on PBV, thus the third hypothesis is accepted.
4. CSR strengthens the effect of Current Ratio (CR) on firm value, thus the fourth hypothesis is accepted.
49
 5. CSR weakens the effect of Quick Ratio (QR) on firm value.
6. CSR strengthens the effect of Return On Investment (ROI) on firm value

b. Limitations
1. The number of samples used is still relatively small, due to the implementation of corporate social
responsibility (CSR) which is still relatively good in Indonesia because to see the percentage of CSR
itself is 30% and it is said to be ideal.
2. In this study, ROI decreased by obtaining a percentage of only 7% because it could not achieve a target.
This is due to the existence of companies that suffered large losses.
3. It is known that the small R Square is 28.5% and the remaining 71.5% where there are many other factors
to measure the company's value capability.

c. Recommendation
1. For future research, a larger sample can be used by adding manufacturing companies around the ASEAN
region that have disclosed CSR.
2. For further researchers, it is expected to examine using other variables that can affect the firm value
variable both from internal and external factors of the company.

ACKNOWLEDGMENTS
I thank STIESIA Surabaya, as well as my friends who have provided support, and especially to my
supervisors who have guided me so far that I have successfully completed this research journal.

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