Papers by Alexander Wibowo
Corporate Social Responsibility has a positive impact to the financial performance of the firm. B... more Corporate Social Responsibility has a positive impact to the financial performance of the firm. Besides, to implement the corporate social responsibility programs the firm needs funds that obtained from its revenue and profit. This paper studies the interaction between the social performance of the firms and the profitability of the firms. Social performance is measured by corporate social responsibility disclosure score and the profitability is measured by Return on Asset (ROA). Corporate responsibility disclosure gives information about the concern of the company to the use of energy, the environment, employee relations, product, and community involvement. Using a sample of 25 firms from SRI-KEHATI Index and covering the period 2005 -2010, the OLS model uses in this study. SRI-KEHATI Index is stock market index that consist of 25 Indonesia firms that have excellent performance in promoting sustainable businesses, as well as having an awareness of environmental, social and good corporate governance. During the period of [2005][2006][2007][2008][2009][2010] there are evidences that the social performance of firms is increase and the profitability of the firms also increase except in year 2008 as an impact of financial crisis in US. This study finds that there is positive impact of the social performance to the profitability of the firms and also there is positive impact of the profitability of the company to the social performance of the firms. The result of this study indicates that there is a positive interaction between corporate social responsibility disclosure and profitability of firms.
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Papers by Alexander Wibowo