THE INFLUENCE OF CREDIT RISK, INTEREST RATE RISK, LIQUIDITY, OPERATIONAL RISK AND ENVIRONMENTAL PERFORMANCE ON CORPORATE SOCIAL RESPONSIBILITY

Abstract

Nowadays, Corporate Social Responsibility (CSR) disclosure is mandatory for public companies and one of the strategies used by companies to improve reputation with stakeholders, which is expected to have a positive impact on financial performance. This study aims to determine the effect of credit risk, interest rate risk, liquidity, operational risk and environmental performance on Corporate Social Responsibility (CSR) disclosure. The population in this study includes all financial companies listed on the Indonesia Stock Exchange in 2018-2022. The sample was selected based on the purposive sampling method, so that the companies sampled were 13 banks with a total of 65 data observations. This study uses Non-Performing Loans (NPL) as a variable measure of credit risk. The variable of interest rate risk is measured by the Internal Rate Of Return (IRR), operational risk variables are measured by Operating Expenditure to Operating Income (BOPO) and environmental performance is measured using ESG scores specifically on environmental criteria. The results of this study show that credit risk has no effect on CSR disclosure. However, other variables namely interest rate risk, operational risk and environmental performance have a relationship that can affect CSR disclosure.