THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN MODERATING THE EFFECT OF FINANCIAL PERFORMANCE AND CAPITAL STRUCTURE ON FIRM VALUE

Abstract

Basic Materials companies in Indonesia face challenges in maintaining firm value stability in the post-pandemic period due to fluctuations in financial performance and changes in capital structure. Firm value, measured by Price to Book Value (PBV), is influenced by Return on Assets (ROA) and Debt to Equity Ratio (DER). In addition, Corporate Social Responsibility (CSR) disclosure is considered capable of influencing investor perceptions and stakeholder trust. This study aims to analyze the effect of financial performance and capital structure on firm value with CSR as a moderating variable. The data used are secondary data obtained from annual reports and financial statements of 13 Basic Materials companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The analysis was conducted using panel data regression and Moderated Regression Analysis (MRA) through EViews 10 software. The results show that financial performance and capital structure do not significantly affect firm value. Furthermore, CSR is unable to moderate the relationship between financial performance and firm value, as well as the relationship between capital structure and firm value. Companies are advised to improve profitability management, optimize capital structure, and strengthen CSR disclosure quality to enhance firm value and stakeholder confidence.