Findy Rachmandika Muhammad
1
Sutrisno T
2
Muhammad Tojibussabirin
3
| 2089
2019 to 2021 proxied in ROA include ADES,
ALKA, ARNA, BTON, BUDI, MARK, SKBM,
SPMA, UNIC, and WOOD.
The Effect of CEO Proficiency Moderation
on the Effect of CSR Disclosure on
Company Performance
Hypothesis two states that CEO
proficiency strengthens the effect of CSR
disclosure on company performance and
after being tested by MRA regression
analysis, the results of hypothesis two were
rejected where the results of MRA
regression testing obtained the result that
the moderation of CEO proficiency weakens
the effect of CSR disclosure on company
performance. The low quality of CSR in
Indonesia causes a CEO's lack of
understanding about how CSR is
implemented besides that CSR programs
required by the government are only
limited to maintaining the company's
reputation.
Indonesia is one of the first countries
in the world to introduce laws and
regulations on CSR to ensure corporations
carry out their social responsibility. This law
is contained in Law number 40 of 2007
concerning limited liability companies
where CSR is defined as the company's
commitment to play a role in sustainable
economic development to improve the
quality of life and the environment that
benefits the company, the local community,
and society in general. (Rosser & Edwin,
2010)
CSR in its implementation is still many
companies that are "reluctant" to
implement CSR programs and are only
voluntary and many are misguided just by
distributing necessities, this is because CSR
is considered an expense that must be
made by the company and is
mathematically unprofitable as evidenced
by the determined value of the low
influence of CSR on company performance
plus the observation period made by
researchers is the period before the
pandemic, pandemic period, and post-
pandemic where companies will tend not to
do something that does not generate
profits in the short term so that the
assumption that CSR is a burden and CSR
investment will be able to be enjoyed by
the company in the future makes the CEO
lack of attention to CSR obligations that
must be carried out by the company to
fulfill obligations to stakeholders.
Companies that during the
observation period tend to experience a
decrease in company performance marked
by a decrease in ROA include AGII, AISA,
ALDO, ASII, BAJA, BRPT, CAKK, CAMP, CEKA,
CPIN, DLTA, DMND, DPNS, DVLA, EKAD,
FASW, GJTL, GOOD, HMSP, HOKI, ICBP,
IGAR, INAI, INCI, INDF, INDS, INTP, IPOL,
ISSP, JPFA, KDSI, KINO, KLBF, MDKI, MLBI,
MOLI, MYOR, PBID, PEHA, PTSN, PYFA,
SCCO, WTON.
Research Implications
The results of this research can have
implications in terms of theory, practice,
and policy. The following are some of the
implications of the results of this study.
a. Theoretical Implications
Top managerial decisions in
companies are complex by considering
many things, including how the company's