The Influence of Corporate Social Responsibility (CSR) Disclosure and Political Connections on Firm Value

Abstract

The objective of this study is to examine and evaluate the impact of corporate social responsibility (CSR) disclosure and political connections on firm value. This study employs a quantitative approach. The sample for this study was obtained using the purposive sampling method. A total of 28 companies in the LQ 45 category, listed on the Indonesia Stock Exchange (IDX), were selected for analysis over the 2020-2022 period (84 observations). The data utilized in this study are secondary in nature. The analysis method employed is panel data regression analysis, facilitated by the EViews 12 application. The results of this study indicate that the variable of Corporate Social Responsibility (CSR) Disclosure has a positive and significant effect on the company's value, with a probability value of 0.0037. The influence of political connections on the firm value was not statistically significant (p-value = 0.4593). However, the simultaneous effect of corporate social responsibility (CSR) disclosure and political connections on the firm value was found to be positive and statistically significant (p-value = 0.010997).