The Effect of Financial Leverage on Stock Return with Moderation of Corporate Social Responsibility Disclosure
Main Article Content
Abstract
This research aims to assess how financial leverage affects stock returns while taking into account CSR disclosure as moderation. The research data were analyzed using panel data analysis. Secondary data in the study were taken from the 2013-2022 annual reports of banks listed on the Indonesia Stock Exchange (BEI). To measure the level of corporate social responsibility disclosure, the reporting standards of the Global Reporting Initiative (GRI) available through the ESGI data site were used. Sample selection was conducted using purposive sampling technique, which is a method that selects samples based on certain criteria relevant to the research objectives, and only samples that meet these criteria are used in the analysis. Data analysis using eviews12 which includes descriptive statistics, chow test analysis, classical assumption test, and equation (hypothesis testing). The research findings show that, when measured by the DER indicator, financial leverage significantly effects stock returns. However, if the DAR indicator is used to measure financial leverage, stock returns will decrease or have a negative effect. CSR disclosure moderateskthe effect ffinancial leverage on stock returns, if financial leverage uses the DER indicator in its measurement. However, CSR disclosure is not able to moderate the effect of financial leverage on stock returns if financial leverage uses DAR in its measurement. This study has several limitations, including a limited focus on the banking sector. In addition, the measurement of CSR disclosure is not based on specific criteria, but is adjusted to the disclosure of each company.
Article Details
Section
Articles
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Acheampong, P., Agalega, E., & Shibu, A. K. (2014). The Effect of Financial Leverage and Market Size on Stock Returns on the Ghana Stock Exchange: Evidence from Selected Stocks in the Manufacturing Sector. International Journal of Financial Research, 5(1).
https://doi.org/10.5430/ijfr.v5n1p125
Ang, R. (1997). Buku Pintar Pasar Modal Indonesia. Jakarta: Mediasoft Indonesia
Arora, A., & Sharma, C. (2016). Corporate governance and firm performance in developing countries: evidence from India. Corporate Governance (Bingley), 16(2), 420–436. https://doi.org/10.1108/CG-01-2016-0018
Chandra, A. L., & Rusliati, E. (2019). Financial Leverage and Liquidity on Good Corporate Governance and Stock Return. Jurnal Riset Akuntansi Kontemporer, 11(2), 78–87. https://doi.org/10.23969/jrak.v11i2.3146
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
Elo, S., & Kyngäs, H. (2008). The qualitative content analysis process. Journal of advanced nursing, 62(1), 107-115.
https://doi.org/10.1111/j.1365-2648.2007.04569.x
Estiasih, S. P., Suhardiyah, M., & Suharyanto, S. (2024). The Effects of Leverage, Firm Size, and Market Value on Financial Performance in Food and Beverage Manufacturing Firms. Jurnal Aplikasi Manajemen, 22(2), 414–425. https://doi.org/10.21776/ub.jam.2024.022.02.09
Fakhruddin, M., & Hadianto, M. S. (2001). Perangkat dan model analisis investasi di pasar modal. Jakarta: Elex Media Komputindo.
Freeman, E. (1983). Strategic Management: A Stakeholder Approach. In Advances in Strategic Management, ed. R. Lamb, vol. 1, 31–60. Greenwich: JAI Press. https://doi.org/10.2139/ssrn.263511
Gangi, F., Meles, A., D'Angelo, E., & Daniele, L. M. (2019). Sustainable development and corporate governance in the financial system: are environmentally friendly banks less risky?. Corporate Social Responsibility and Environmental Management, 26(3), 529-547.
https://doi.org/10.1002/csr.1699
Hafidzi, A. H., & Qomariah, N. (2022). The Role of Return on Asset Mediation in Influencing Corporate Social Responsibility on Stock Returns in Manufacturing Companies. Quality - Access to Success, 23(186), 230–236. https://doi.org/10.47750/QAS/23.186.30
Hapsoro, D., Wicaksono, C. A., & Primaretka, T. A. (2020). Does CSRD moderate the effect of financial performance on stock return? Evidence of Indonesian mining companies. Jurnal Akuntansi & Auditing Indonesia, 24(1), 1–10. https://doi.org/10.20885/jaai.vol24.iss1.art1
Hendayana, Y., Arief Ramdhany, M., Pranowo, A. S., Abdul Halim Rachmat, R., & Herdiana, E. (2024). Exploring impact of profitability, leverage and capital intensity on avoidance of tax, moderated by size of firm in LQ45 companies. Cogent Business and Management, 11(1).
https://doi.org/10.1080/23311975.2024.2371062
Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate Governance and Corporate Social Responsibility Disclosure: Evidence from the US Banking Sector. Journal of Business Ethics, 125(4), 601–615.
https://doi.org/10.1007/s10551-013-1929-2
Jo, H., Kim, H., & Park, K. (2015). Corporate environmental responsibility and firm performance in the financial services sector. Journal of business ethics, 131, 257-284.
https://doi.org/10.1007/s10551-014-2276-7
Jogiyanto. H.M. (2010). Teori Portofolio dan Analisis Invstasi. Edisi Ketujuh, Yogyakarta: BPFE
Karla, K., Marpaung, R., Saragih, O. L., Tobing, N. B., & Malau, Y. N. (2020). Pengaruh CR, NPM, DAR, dan ITO terhadap Return Saham pada Perusahaan Barang Konsumsi yang Terdaftar di BEI. Owner: Riset dan Jurnal Akuntansi, 4(2), 450-458.
https://doi.org/10.33395/owner.v4i2.275
Kasmir (2016). Analisis Laporan Keuangan. Edisi Pertama. Cetakan Keduabelas. PT Raja Grafindo Persada. Jakarta
Khan, A., Rahayu, C. W. E., & Rahmawati, C. H. T. (2024). The Effect of Financial Ratios on Stock Returns: By Mediation of Price Earning Ratio. KINERJA, 28(1), 23-40.
https://doi.org/10.24002/kinerja.v28i1.7826
Kakabadse, N. K., Rozuel, écile, & Lee-Davies, L. (2008). Corporate social responsibility and stakeholder approach: a conceptual review. International Journal of Business Governance and Ethics, 1(4), 277–302.
https://doi.org/10.1504/ijbge.2005.006733
Kouaib, A., & Amara, I. (2022). Corporate Social Responsibility Disclosure and Investment Decisions: Evidence from Saudi Indexed Companies. Journal of Risk and Financial Management, 15(11).
https://doi.org/10.3390/jrfm15110495
Kuo, L., Kuo, P. W., & Chen, C. C. (2021). Mandatory CSR disclosure, CSR assurance, and the cost of debt capital: Evidence from Taiwan. Sustainability (Switzerland), 13(4), 1–19.
https://doi.org/10.3390/su13041768
Martynova, N., Ratnovski, L., & Vlahu, R. (2020). Bank profitability, leverage constraints, and risk-taking. Journal of Financial Intermediation, 44, 100821. https://doi.org/10.1016/j.jfi.2019.03.006
McDonald, M., Smith, B., & Ward, K. (2006). Marketing due diligence: reconnecting strategy to share price. Butterworth-Heinemann.
Media Indonesia. (2025, April 25). Kondisi perekonomian Indonesia saat ini. https://mediaindonesia.com/humaniora/764128/kondisi-perekonomian-indonesia-saat-ini
Muanders, K., Gray, R., & Owen, D. (1988). Corporate Social Reporting Emerging Trends in Accountability and the Social Contract. Accounting, Auditing and Accountability, Vol. 1 No. 1, pp. 6-20.
https://doi.org/10.1108/EUM0000000004617
Muhammed, S., Desalegn, G., & Emese, P. (2024). Effect of Capital Structure on the Financial Performance of Ethiopian Commercial Banks. Risks, 12(4), 1–15. https://doi.org/10.3390/risks12040069
Noor, L. R., & Siregar, B. (2024). Faktor-Faktor Yang Mempengaruhi Return Saham Perusahaan Perbankan Dengan Risiko Pasar Sebagai Variabel Mediasi (Doctoral dissertation, Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Jakarta: Otoritas Jasa Keuangan.
Owolabi, S. A., & Inyang, U. E. (2013). International Pragmatic Review and Assessment of Capital Structure Determinants. Kuwait Chapter of Arabian Journal of Business and Management Review, 2(6), 82–95.
https://doi.org/10.12816/0001211
Pandoyo, D., & Sofyan, M. (2018). Metodologi penelitian keuangan dan bisnis. Bogor: Penerbit In Media.
Petty, J. W., Titman, S., Keown, A. J., Martin, P., Martin, J. D., & Burrow, M. (2015). Financial management: Principles and applications. Pearson Higher Education AU.
Pizzi, S., Del Baldo, M., Caputo, F., & Venturelli, A. (2022). Voluntary disclosure of Sustainable Development Goals in mandatory non-financial reports: The moderating role of cultural dimension. Journal of International Financial Management and Accounting, 33(1), 83–106.
https://doi.org/10.1111/jifm.12139
Ramadhanty, N. S., & Budiasih, N. I. G. A. (2020). The Effect of Financial Leverage on Stock Returns with Corporate Social Responsibility Disclosure as Moderating Variable (Empirical Study on Mining Companies Listed on Indonesia Stock Exchange in 2016-2018). American Journal of Humanities and Social Sciences Research (AJHSSR), 4(6), 48-53.
https://api.semanticscholar.org/CorpusID:235409105
Ramlah, R. (2021). Point of View Research Management The Effect of Profitability and Leverage on Stock Return of Food and Beverage Companies. Research Management,2(2),139–150. https://journal.accountingpointofview.id/index.php/povrema
Razak, A., Vingky Nurfitriana, F., Wana, D., Umar, I., & Endri, E. (2023). The effects of financial performance on stock returns: Evidence of machine and heavy equipment companies in Indonesia.
https://doi.org/10.5430/RWE.V11N6P131
Saraswati, A., Halim, A., & Sari, A. R. (2020). Pengaruh Earning Per Share, Debt To Equity Ratio, Return on Asset, Price To Book Value, Dan Price Earning Ratio Terhadap Return Saham Perusahaan Manufaktur Yang Terdaftar Di Bei Periode Tahun 2014-2015. Jurnal Riset Mahasiswa Akuntansi, 7(1), 1–14. https://doi.org/10.21067/jrma.v7i1.4234
Schaefer, S. D., Terlutter, R., & Diehl, S. (2020). Talking about CSR matters: employees’ perception of and reaction to their company’s CSR communication in four different CSR domains. International Journal of Advertising, 39(2), 191–212. https://doi.org/10.1080/02650487.2019.1593736
Silaban, A. C. (2021). The Effect of Financial Performance on Share Return with Company Size as Moderated Variables. EPRA International Journal of Research and Development (IJRD), 6(1), 58-72.
https://doi.org/10.36713/epra5172
Sofiamira, N. A., & Haryono, N. A. (2017). Capital Expenditure, Leverage, Good Corporate Governance, Corporate Social Responsibility: Pengaruhnya Terhadap Nilai Perusahaan. Jurnal Ekonomi Dan Bisnis, 20(2), 191. https://doi.org/10.24914/jeb.v20i2.691
Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281-306). Academic Press.
https://doi.org/10.1016/B978-0-12-214850-7.50025-5
Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate social responsibility and financial performance: Evidence from Pakistani listed banks. Sustainability (Switzerland), 12(10).
https://doi.org/10.3390/SU12104080
Tandelilin, E.(2010). Portofolio dan Investasi Teori dan Aplikasi. Edisi pertama. Yogyakarta: Kanisius
Tarawneh, A., Abdul-Rahman, A., Mohd Amin, S. I., & Ghazali, M. F. (2024). A Systematic Review of Fintech and Banking Profitability. International Journal of Financial Studies, 12(1), 1–21.
https://doi.org/10.3390/ijfs12010003
Temy Setiawan, S. E., Ak, M., & Th, M. (2022). Mahir Akuntansi untuk Usaha Mikro, Kecil, dan Menengah. Bhuana Ilmu Populer.
Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR Performance and the Readability of CSR Reports: Too Good to be True? Corporate Social Responsibility and Environmental Management, 25(1), 66–79.
https://doi.org/10.1002/csr.1440
Widana, I. W., & Muliani, N. P. L. (2020). Uji persyaratan analisis.
Yu, J. (2024). Stabilizing leverage, financial technology innovation, and commercial bank risks: Evidence from China. Economic Modelling, 131(November 2023), 106599. https://doi.org/10.1016/j.econmod.2023.106599
https://doi.org/10.5430/ijfr.v5n1p125
Ang, R. (1997). Buku Pintar Pasar Modal Indonesia. Jakarta: Mediasoft Indonesia
Arora, A., & Sharma, C. (2016). Corporate governance and firm performance in developing countries: evidence from India. Corporate Governance (Bingley), 16(2), 420–436. https://doi.org/10.1108/CG-01-2016-0018
Chandra, A. L., & Rusliati, E. (2019). Financial Leverage and Liquidity on Good Corporate Governance and Stock Return. Jurnal Riset Akuntansi Kontemporer, 11(2), 78–87. https://doi.org/10.23969/jrak.v11i2.3146
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
Elo, S., & Kyngäs, H. (2008). The qualitative content analysis process. Journal of advanced nursing, 62(1), 107-115.
https://doi.org/10.1111/j.1365-2648.2007.04569.x
Estiasih, S. P., Suhardiyah, M., & Suharyanto, S. (2024). The Effects of Leverage, Firm Size, and Market Value on Financial Performance in Food and Beverage Manufacturing Firms. Jurnal Aplikasi Manajemen, 22(2), 414–425. https://doi.org/10.21776/ub.jam.2024.022.02.09
Fakhruddin, M., & Hadianto, M. S. (2001). Perangkat dan model analisis investasi di pasar modal. Jakarta: Elex Media Komputindo.
Freeman, E. (1983). Strategic Management: A Stakeholder Approach. In Advances in Strategic Management, ed. R. Lamb, vol. 1, 31–60. Greenwich: JAI Press. https://doi.org/10.2139/ssrn.263511
Gangi, F., Meles, A., D'Angelo, E., & Daniele, L. M. (2019). Sustainable development and corporate governance in the financial system: are environmentally friendly banks less risky?. Corporate Social Responsibility and Environmental Management, 26(3), 529-547.
https://doi.org/10.1002/csr.1699
Hafidzi, A. H., & Qomariah, N. (2022). The Role of Return on Asset Mediation in Influencing Corporate Social Responsibility on Stock Returns in Manufacturing Companies. Quality - Access to Success, 23(186), 230–236. https://doi.org/10.47750/QAS/23.186.30
Hapsoro, D., Wicaksono, C. A., & Primaretka, T. A. (2020). Does CSRD moderate the effect of financial performance on stock return? Evidence of Indonesian mining companies. Jurnal Akuntansi & Auditing Indonesia, 24(1), 1–10. https://doi.org/10.20885/jaai.vol24.iss1.art1
Hendayana, Y., Arief Ramdhany, M., Pranowo, A. S., Abdul Halim Rachmat, R., & Herdiana, E. (2024). Exploring impact of profitability, leverage and capital intensity on avoidance of tax, moderated by size of firm in LQ45 companies. Cogent Business and Management, 11(1).
https://doi.org/10.1080/23311975.2024.2371062
Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate Governance and Corporate Social Responsibility Disclosure: Evidence from the US Banking Sector. Journal of Business Ethics, 125(4), 601–615.
https://doi.org/10.1007/s10551-013-1929-2
Jo, H., Kim, H., & Park, K. (2015). Corporate environmental responsibility and firm performance in the financial services sector. Journal of business ethics, 131, 257-284.
https://doi.org/10.1007/s10551-014-2276-7
Jogiyanto. H.M. (2010). Teori Portofolio dan Analisis Invstasi. Edisi Ketujuh, Yogyakarta: BPFE
Karla, K., Marpaung, R., Saragih, O. L., Tobing, N. B., & Malau, Y. N. (2020). Pengaruh CR, NPM, DAR, dan ITO terhadap Return Saham pada Perusahaan Barang Konsumsi yang Terdaftar di BEI. Owner: Riset dan Jurnal Akuntansi, 4(2), 450-458.
https://doi.org/10.33395/owner.v4i2.275
Kasmir (2016). Analisis Laporan Keuangan. Edisi Pertama. Cetakan Keduabelas. PT Raja Grafindo Persada. Jakarta
Khan, A., Rahayu, C. W. E., & Rahmawati, C. H. T. (2024). The Effect of Financial Ratios on Stock Returns: By Mediation of Price Earning Ratio. KINERJA, 28(1), 23-40.
https://doi.org/10.24002/kinerja.v28i1.7826
Kakabadse, N. K., Rozuel, écile, & Lee-Davies, L. (2008). Corporate social responsibility and stakeholder approach: a conceptual review. International Journal of Business Governance and Ethics, 1(4), 277–302.
https://doi.org/10.1504/ijbge.2005.006733
Kouaib, A., & Amara, I. (2022). Corporate Social Responsibility Disclosure and Investment Decisions: Evidence from Saudi Indexed Companies. Journal of Risk and Financial Management, 15(11).
https://doi.org/10.3390/jrfm15110495
Kuo, L., Kuo, P. W., & Chen, C. C. (2021). Mandatory CSR disclosure, CSR assurance, and the cost of debt capital: Evidence from Taiwan. Sustainability (Switzerland), 13(4), 1–19.
https://doi.org/10.3390/su13041768
Martynova, N., Ratnovski, L., & Vlahu, R. (2020). Bank profitability, leverage constraints, and risk-taking. Journal of Financial Intermediation, 44, 100821. https://doi.org/10.1016/j.jfi.2019.03.006
McDonald, M., Smith, B., & Ward, K. (2006). Marketing due diligence: reconnecting strategy to share price. Butterworth-Heinemann.
Media Indonesia. (2025, April 25). Kondisi perekonomian Indonesia saat ini. https://mediaindonesia.com/humaniora/764128/kondisi-perekonomian-indonesia-saat-ini
Muanders, K., Gray, R., & Owen, D. (1988). Corporate Social Reporting Emerging Trends in Accountability and the Social Contract. Accounting, Auditing and Accountability, Vol. 1 No. 1, pp. 6-20.
https://doi.org/10.1108/EUM0000000004617
Muhammed, S., Desalegn, G., & Emese, P. (2024). Effect of Capital Structure on the Financial Performance of Ethiopian Commercial Banks. Risks, 12(4), 1–15. https://doi.org/10.3390/risks12040069
Noor, L. R., & Siregar, B. (2024). Faktor-Faktor Yang Mempengaruhi Return Saham Perusahaan Perbankan Dengan Risiko Pasar Sebagai Variabel Mediasi (Doctoral dissertation, Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Jakarta: Otoritas Jasa Keuangan.
Owolabi, S. A., & Inyang, U. E. (2013). International Pragmatic Review and Assessment of Capital Structure Determinants. Kuwait Chapter of Arabian Journal of Business and Management Review, 2(6), 82–95.
https://doi.org/10.12816/0001211
Pandoyo, D., & Sofyan, M. (2018). Metodologi penelitian keuangan dan bisnis. Bogor: Penerbit In Media.
Petty, J. W., Titman, S., Keown, A. J., Martin, P., Martin, J. D., & Burrow, M. (2015). Financial management: Principles and applications. Pearson Higher Education AU.
Pizzi, S., Del Baldo, M., Caputo, F., & Venturelli, A. (2022). Voluntary disclosure of Sustainable Development Goals in mandatory non-financial reports: The moderating role of cultural dimension. Journal of International Financial Management and Accounting, 33(1), 83–106.
https://doi.org/10.1111/jifm.12139
Ramadhanty, N. S., & Budiasih, N. I. G. A. (2020). The Effect of Financial Leverage on Stock Returns with Corporate Social Responsibility Disclosure as Moderating Variable (Empirical Study on Mining Companies Listed on Indonesia Stock Exchange in 2016-2018). American Journal of Humanities and Social Sciences Research (AJHSSR), 4(6), 48-53.
https://api.semanticscholar.org/CorpusID:235409105
Ramlah, R. (2021). Point of View Research Management The Effect of Profitability and Leverage on Stock Return of Food and Beverage Companies. Research Management,2(2),139–150. https://journal.accountingpointofview.id/index.php/povrema
Razak, A., Vingky Nurfitriana, F., Wana, D., Umar, I., & Endri, E. (2023). The effects of financial performance on stock returns: Evidence of machine and heavy equipment companies in Indonesia.
https://doi.org/10.5430/RWE.V11N6P131
Saraswati, A., Halim, A., & Sari, A. R. (2020). Pengaruh Earning Per Share, Debt To Equity Ratio, Return on Asset, Price To Book Value, Dan Price Earning Ratio Terhadap Return Saham Perusahaan Manufaktur Yang Terdaftar Di Bei Periode Tahun 2014-2015. Jurnal Riset Mahasiswa Akuntansi, 7(1), 1–14. https://doi.org/10.21067/jrma.v7i1.4234
Schaefer, S. D., Terlutter, R., & Diehl, S. (2020). Talking about CSR matters: employees’ perception of and reaction to their company’s CSR communication in four different CSR domains. International Journal of Advertising, 39(2), 191–212. https://doi.org/10.1080/02650487.2019.1593736
Silaban, A. C. (2021). The Effect of Financial Performance on Share Return with Company Size as Moderated Variables. EPRA International Journal of Research and Development (IJRD), 6(1), 58-72.
https://doi.org/10.36713/epra5172
Sofiamira, N. A., & Haryono, N. A. (2017). Capital Expenditure, Leverage, Good Corporate Governance, Corporate Social Responsibility: Pengaruhnya Terhadap Nilai Perusahaan. Jurnal Ekonomi Dan Bisnis, 20(2), 191. https://doi.org/10.24914/jeb.v20i2.691
Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281-306). Academic Press.
https://doi.org/10.1016/B978-0-12-214850-7.50025-5
Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate social responsibility and financial performance: Evidence from Pakistani listed banks. Sustainability (Switzerland), 12(10).
https://doi.org/10.3390/SU12104080
Tandelilin, E.(2010). Portofolio dan Investasi Teori dan Aplikasi. Edisi pertama. Yogyakarta: Kanisius
Tarawneh, A., Abdul-Rahman, A., Mohd Amin, S. I., & Ghazali, M. F. (2024). A Systematic Review of Fintech and Banking Profitability. International Journal of Financial Studies, 12(1), 1–21.
https://doi.org/10.3390/ijfs12010003
Temy Setiawan, S. E., Ak, M., & Th, M. (2022). Mahir Akuntansi untuk Usaha Mikro, Kecil, dan Menengah. Bhuana Ilmu Populer.
Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR Performance and the Readability of CSR Reports: Too Good to be True? Corporate Social Responsibility and Environmental Management, 25(1), 66–79.
https://doi.org/10.1002/csr.1440
Widana, I. W., & Muliani, N. P. L. (2020). Uji persyaratan analisis.
Yu, J. (2024). Stabilizing leverage, financial technology innovation, and commercial bank risks: Evidence from China. Economic Modelling, 131(November 2023), 106599. https://doi.org/10.1016/j.econmod.2023.106599