The Moderating Role of CSR on the Impact of Liquidity, Leverage, Firm Size, and Firm Age on Profitability in Energy Sector Companies Listed on the Indonesia Stock Exchange

Novinda Dian Adityaning Ratmanasuci, Elwisam Elwisam

Abstract


Abstract: This study aims to investigate the link between liquidity, leverage, company size, firm age, and the profitability of energy sector companies which will make up 10.52% of Indonesia's GDP in 2023 and CSR. Purposive sampling was used to choose 20 samples from the study population, which, in compliance with the PROPER Program participation requirements, included 57 energy sector businesses listed on the IDX for the 2019–2023 timeframe. Panel data regression analysis and moderated regression analysis using eViews were used to examine the data. The results showed that although company age and size positively affect profitability, debt and CSR have a negative impact, and liquidity has no effect on profitability. The findings also demonstrate that the detrimental impact of debt on profitability is amplified by CSR moderation. The findings, however, indicate that CSR is unable to mitigate the impact of business age, size, and liquidity on profitability. It is determined that CSR is a predicted moderator of the impact of liquidity, company size, and age on profitability, as well as a quasi-moderator of the impact of leverage on profitability. Further research should be conducted to analyze other determinants of profitability and other factors that can moderate variables and profitability.

Keywords: liquidity, leverage, firm size, firm age, profitability, corporate social responsibility

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