CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ITS IMPACT ON ECONOMIC VALUE ADDED (EVA): THE ROLE OF FIRM SIZE AS MODERATION
Corporate Social Responsibility (CSR) is widely embraced by companies in response to societal, ethical, and policy pressures, aiming to mitigate their impact on society, the economy, and the environment. However, the extent to which CSR contributes to or diminishes the value of companies across various sectors in Indonesia remains relatively unexplored. This study aims to assess the strategies adopted by corporations and to measure the influence of CSR adoption on a company's Economic Value Added (EVA). Furthermore, the author explores the role of profitability as a mediator and investigates how firm size moderates these dynamics. Through regression analysis and an examination of the mediation process, the author utilizes comprehensive datasets encompassing all sectors listed on the Indonesia Stock Exchange (IDX). Employing purposive sampling, a method carefully selected to align with the specific parameters of the inquiry, the study draws data from Bloomberg and Eikon, platforms provided by Thomson Reuters. To the best of the authors' knowledge, this research marks the inaugural effort to scrutinize the interplay between CSR and EVA, along with the mediating influence of profitability, within Indonesia. Additionally, the findings highlight intriguing implications for scholarly discourse, managerial practices, and policymaking.
Corporate Social Responsibility (CSR), Economic Value Added (EVA), Firm Size, Profitability.