The Effect of CSR on Financial Performance with Institutional Ownership as a Moderating Variable
Keywords:
CSR; Financial Performance; Institutional Ownership; Manufacturing Firms; IndonesiaAbstract
This study examines the effect of Corporate Social Responsibility (CSR) on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange, with institutional ownership as a moderating variable. The population consists of 235 manufacturing companies; however, the final sample comprises 32 companies observed over the 2021–2024 period due to incomplete sustainability disclosures, inconsistent institutional ownership data, and persistent negative profitability. Financial performance is measured using Return on Assets (ROA) to represent accounting-based performance reflecting operational efficiency. This study employs a quantitative approach using panel data regression and Moderated Regression Analysis (MRA). The results indicate that CSR has a negative and significant effect on ROA, while institutional ownership does not significantly moderate the relationship between CSR and financial performance. These findings suggest that CSR practices in Indonesian manufacturing firms have not yet been fully integrated into efficiency-oriented business strategies. This study contributes to the literature on CSR and corporate governance by providing empirical evidence from an emerging market context during the post-pandemic period.
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