The Effect of Financial Performance on the Value of Manufacturing Companies on the Indonesia Stock Exchange (IDX) With Corporate Social Responsibility

Abstract

The financial performance of a company is closely related to Return On Assets (ROA) which is used to measure the rate of return on assets. This study uses a survey method, where the sample used comes from Manufacturing Companies listed on the Indonesia Stock Exchange (IDX) in 2019-2020 . The technique in taking the sample is by means of the Purposive Sampling method where taking a sample with certain criteria. The results of the partial test (T test) provide results or evidence of the hypothesis that the measurement of ROA, ROE and CSR which is proxied as a financial performance variable has a significant effect on firm value. The higher the value of the resulting company, the more positive impact it will have on financial performance where investors will flock to invest and the better the company's CSR for the environment, the better the company's image will be.