Strategic Resilience in Agribusiness: Does CSR Moderate Financial Risks in Indonesian Palm Oil Firms?

Pardomuan Sihombing; Ratih Dwi Asmaranti

doi:10.58777/rfb.v4i1.599

Authors

Pardomuan Sihombing Master of Management Study Program, Faculty of Economics and Business, Mercu Buana University, Jakarta
Ratih Dwi Asmaranti Master of Management Study Program, Faculty of Economics and Business, Mercu Buana University, Jakarta

DOI:

https://doi.org/10.58777/rfb.v4i1.599

Keywords:

Profitability, capital structure, operating cash flow, profit growth, company size, company value, CSR

Abstract

This study examines the critical role of Corporate Social Responsibility (CSR) in shaping firm value in the palm oil industry, a sector under intense global environmental and social scrutiny. As one of the most controversial resource-based industries, palm oil companies are frequently linked to deforestation, climate change, biodiversity loss, and social conflicts, which significantly influence stakeholder perceptions and investor confidence. These conditions create a fundamental problem: firms with strong financial performance may still experience a gap between their operational achievements and market valuation due to external pressures. Therefore, CSR in this context is no longer merely a symbolic or ethical obligation, but a strategic necessity to maintain legitimacy, enhance corporate reputation, and ensure long-term sustainability. This study examines how internal financial factors, including financial performance, capital structure, profit growth, and operating cash flow, affect firm value while incorporating CSR as a moderating variable. By doing so, the research provides a more comprehensive understanding of firm value that integrates both financial and non-financial dimensions. Ultimately, this study highlights that in high-risk industries such as palm oil, sustainable value creation depends not only on financial strength but also on a company's commitment to responsible environmental and social practices

References

A. Almaqtari, F., Elsheikh, T., Tawfik, O. I., & Youssef, M. A. E. A. (2022). Exploring the Impact of Sustainability, Board Characteristics, and Firm- Specifics on Firm Value: A Comparative Study of the United Kingdom and Turkey. Sustainability (Switzerland), 14(24). https://doi.org/10.3390/su142416395

Agassi, D., & Ulum, I. (2023). The role of corporate social responsibility in firm value: Evidence from Indonesia. Journal of Accounting and Investment, 24(2), 123–135.

Agassi, D., & Ulum, A. (2023). Determination of A Firm Value with CSR as a Moderation Variable. Jurnal Manajemen Keuangan, 12(1), 2023. www.idx.co.id

Ardillah, K., Breliastiti, R., Setiawan, T., & Machdar, N. M. (2022). The Role of Ownership Structure in Moderating The Relationship Between Tax Avoidance, Corporate Social Responsibility Disclosure, and Firm Value. Accounting Analysis Journal, 11(1), 21–30. https://doi.org/10.15294/aaj.v11i1.58613

Ayuningtiyas, I. S., Fidiana, F., Mildawati, T., & Ayuningtyas, I. S. (2023). Lead Journal of Economy and Administration (LEJEA) The Effect Of Intellectual Capital And Sustainability Report Disclosure On Company Value With Profitability As A Moderation Variable (Empirical Studies in Manufacturing Companies 2017-2021). 1(4). https://internationalpublisher.id/journal/index.php/Lejea

Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer.

Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders.

Christina Devi, S. (n.d.). Pengaruh Profitabilitas, Leverage, dan Arus Kas Terhadap Nilai Perusahaan.

Dang, H. N., Vu, V. T. T., Ngo, X. T., & Hoang, H. T. V. (2019). Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. Journal of Corporate Accounting and Finance, 30(1), 144–160. https://doi.org/10.1002/jcaf.22371

Eka Desiyanti, Nawang Kalbuana, Sifa Fauziah, M. W. S. (2020). Pengaruh Pengungkapan CSR, Presistensi Laba dan Pertumbuhan Laba terhadap Nilai Perusahaan Jakarta Islamic Index yang terdaftar du Bursa Efek Indonesia Periode 2015-2019. Jurnal Mala'bi STIE Yapman.

Eldomiaty, T., Azzam, I., Afifi, K. T. H., & Rashwan, M. H. (2024). An Alignment of Financial Signaling and Stock Return Synchronicity. Journal of Risk and Financial Management, 17(4). https://doi.org/10.3390/jrfm17040162

Fajri, A., & Juanda, A. (2021). Operating cash flow and firm value. Jurnal Akuntansi dan Keuangan, 23(1), 56–67.

Fajri, J. (2021). Pengaruh Arus Kas Operasi, Investasi, dan Pendanaan terhadap Nilai Perusahaan pada Sektor Keuangan di Indonesia. Jurnal Ilmiah 86 Mahasiswa Ekonomi Manajemen Terakreditasi Sinta, 4(3), 486–489. http://jim.unsyiah.ac.id/ekm

Fama, E. F., & French, K. R. (1998). Value versus growth: The international evidence. Journal of Finance, 53(6), 1975–1999. https://doi.org/10.1111/0022-1082.00080

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.

Greiner, L. E. (1998). Evolution and revolution as organizations grow. 1972. Harvard Business Review, 76(3), 373–374. https://doi.org/10.1111/j.1741- 6248.1997.00397.x

Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed.). McGraw-Hill.

Handayati, P., Sumarsono, H., & Narmaditya, B. S. (2022). Corporate Social Responsibility Disclosure and Indonesian Firm Value: the Moderating Effect of Profitability and Firm’S Size. Journal of Eastern European and Central Asian Research, 9(4), 703–714. https://doi.org/10.15549/jeecar.v9i4.940

Hariyani, D. S., Ratnawati, T., & Rahmiyati, N. (2021). The Effects of Macroeconomics, Dividend Policy and Good Financial Governance on Corporate Value: Moderation of CSRD. International Journal of Scientific and Research Publications (IJSRP), 11(4), 303–309. https://doi.org/10.29322/ijsrp.11.04.2021.p11240

Idawati, W, Muchlis, N., R. (2023). The Effect of Company Characteristics on Company Value with Sustainability Report Assurance as a Moderation Variable. Research Journal of Finance and Accounting. https://doi.org/10.7176/rjfa/14-9-04

Indrastata, Y. A. S. (2023). Pengaruh GCG, Struktur Modal, Dan Intellectual Capital Terhadap Nilai Perusahaan Transportasi Yang Terdaftar Di Bursa Efek Indonesia. Journal Management, Business, and Accounting.

Jensen, M. C., & Meckling, W. H. (1976). (1976). Also published in Foundations of Organizational Strategy. Journal of Financial Economics, 4, 305–360.

Kamaliah. (2020). Disclosure of corporate social responsibility (CSR) and its implications on company value as a result of the impact of corporate governance and profitability. International Journal of Law and Management, 62(4), 339–354. https://doi.org/10.1108/IJLMA-08-2017-0197

Kartikasari, R., & Sihombing, P. (2024). Profitability, Sales Growth and Ownership Structure on Company Value with Moderation of Capital Structure in a Fishing Company. Asean International Journal of Business, 3(2), 104–118. https://doi.org/10.54099/aijb.v3i2.1014

Lestari, E. S., Rinofah, R., & Maulida, A. (2022). Pengaruh profitabilitas, leverage, kepemilikan manajerial terhadap nilai perusahaan dengan pengungkapan csr sebagai variabel moderating. FORUM EKONOMI, 24(1), 30–44. http://journal.feb.unmul.ac.id/index.php/forumekonomi

Likha, M., & Fitria, A. (n.d.). Pengaruh Pertumbuhan Laba, Kinerja Keuangan Terhadap Nilai Perusahaan dimoderasi Corporate Social Responbility.

Lu, J., et al. (2020). CSR and firm value. Energies, 13(1), 1–16.

Luayyi, Sri, E. N., & Kusumaningarti, M. (2022). Pengaruh Arus Kasdan Rasio Hutang terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Moderating. JIAKu: Jurnal Ilmiah Akuntansi Dan Keuangan – Volume 1, Nomor 3, Oktober 2022 : 213 – 230. https://doi.org/10.24034/jiaku.v1i3

Marisa, C., Andriana, I., & Thamrin, K. M. H. (2022). Pengaruh Kebijakan Dividen, Profitabilitas dan Ukuran Perusahaan terhadap Nilai Perusahaan pada Perusahaan Sub Sektor Perkebunan yang Terdaftar di Bursa Efek Indonesia. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 4(6), 1615–1627. https://doi.org/10.47467/alkharaj.v4i6.1033

Meidawati, N. O. (2023). Determinants of firm value with CSR as a moderating variable. International Journal of Business Ecosystem & Strategy (2687- 2293), 5(2), 67–81. https://doi.org/10.36096/ijbes.v5i2.408

Mipo, M. (2022). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan CSR Sebagai Moderating Variable Pada Perusahaan Manufaktur di BEI. Owner, 6(1), 736–745. https://doi.org/10.33395/owner.v6i1.614

Modigliani, F; Miller, M. (1958). The Cost Of Capital, Corporation Finance and The Theory of Investment. The American Economic Review, 62(3), 547. https://doi.org/10.2307/1286430

Mufidah, M., Febrianti, I., & Adisetiawan, R. (2024). Pengaruh Cash Ratio dan Pertumbuhan Laba Terhadap Nilai Perusahaan dengan Ukuran Perusahaan sebagai Variabel Moderasi. Jurnal Ilmiah Universitas Batanghari Jambi, 24(1), 871. https://doi.org/10.33087/jiubj.v24i1.5058

Nursasi, E. (2020). Pengaruh Kinerja Keuangan terhadap Nilai Perusahaan dengan CSR sebagai Variabel Moderasi. In AKTIVA Jurnal Akuntansi dan Investasi (Vol. 5, Issue 1).

Oke, O. O., & Ajeigbe, K. B. (2024). Evaluating the Relationship between Accounting Variables, Value-Based Management Variables, and Shareholder Returns: An Empirical Approach. Journal of Risk and Financial Management, 17(8). https://doi.org/10.3390/jrfm17080371

Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (2019). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 131(1), 1–19.

Pandapotan, F., & Puspitasari, F. (2022). The Effect of Cash Flow, Board Independence, and Company Size on Financial Distress. Saudi Journal of Economics and Finance 6(9), 311–318. https://doi.org/10.36348/sjef.2022.v06i09.003

Pang, M., Dandy, P. S., & Nugroho, I. (2020). LOGO Jurnal Pengaruh Kinerja Keuangan Terhadap Nilai Perusahaan dengan Corporate Governance Sebagai Variabel Moderasi. International Journal of Social Science and Business, 4(2), 189–196. https://ejournal.undiksha.ac.id/index.php/IJSSB/index

Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Mangesti Rahayu, S. (2020). Corporate governance, corporate profitability, toward corporate social responsibility disclosure and corporate value (a comparative study of the stock exchanges in Indonesia, China and India, 2013-2016). Social Responsibility Journal, 16(7), 983–999. https://doi.org/10.1108/SRJ-08-2017-0160

Ramadhani, F. (2022). Pengaruh profitabilitas dan ukuran perusahaan terhadap nilai perusahaan dengan csr sebagai variabel moderasi. Jurnal Ilmiah Akuntansi Dan Keuangan, 4, 2022. https://journal.ikopin.ac.id/index.php/fairvalue

Ross, S. A., Westerfield, R., & Jaffe, J. (2016). Corporate finance (11th ed.). McGraw-Hill Education.

Santosa, P. W. (2020). The moderating role of firm size on financial charactersitics and Islamic firm value at Indonesian equity market. Business: Theory and Practice, 21(1), 391–401. https://doi.org/10.3846/btp.2020.12197

Santosa, P. W., Budiantoro, H., & Zuzryn, A. S. (2022). The Moderating Role of Firm Size on Relationship between Majority Ownership and Debt Policy of Property Sector. Jurnal Manajemen, 26(2), 315–330. https://doi.org/10.24912/jm.v26i2.932

Santosa, P. W., Rahayu, S. I., Simon, Z. Z., & Tambunan, M. E. (2022). Related Party Transactions and Corporate Governance in Business Group: Evidence from Indonesia. Journal of Economics, Business, & Accountancy Ventura, 25(1), 10. https://doi.org/10.14414/jebav.v25i1.2719

Santosa, P. W., Setianingrum, A., & Yusuf, C. (2022). Corporate governance and leverage on firm value : Evidence of Indonesian large firms. Jurnal Keuangan Dan Perbankan, 26(4), 862–873. https://doi.org/10.26905/jkdp.v26i4.7764

Sariani, N., et al. (2021). Firm size and firm value: Evidence from Indonesia. Jurnal Manajemen, 25(2), 145–158.

Sayuti, A. (2024). Tingkat Pengungkapan Emisi dan Kepatuhan Lingkungan: Analisis Sebelum dan Sesudah Penerapan Aturan OJK No. 16/SEOJK.04/2021 dalam Konteks Teori Legitimasi dan Stakeholder. 4(02), 7823–7830.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Wiley.

Sharma, S & Durant, R. M. (1981). Identification And Analysis of Moderator Variables. Division of Research, Graduate School of Business Administration, The University of Michigan.

Sihombing, I., Lestari, P.A., E., M., I. (2025). The Impact of Dividend Policy and Capital Structure on Firm Value in the Agricultural Sector. Jurnal Ilmu Keuangan dan Perbankan (JIKA), 11(1), 1–20. https://doi.org/10.34010/jika.v11i1.5717

Sipayung, E. (2023). The Influence of Company Size, Dividend Payout Ratio, Capital Structure on Company Value with Profitability as a Moderation Variable in LQ45 Companies at Bei Period 2018-2021. International Journal of Research and Review,

Stephen A. Ross, Westerfield, R. W., Jaffe, J., & Jordan, B. D. (2013). Corporate Finance. Eleventh Edition.

Sudaryati, D., & Puspitasari, E. (2021). CSR and firm value: Moderating role analysis. Jurnal Akuntansi, 25(2), 150–162.

Suhartono, S., Susilowati, D., & Astutih, A. (2022). Pengaruh Good Corporate Governance, Kebijakan Dividen, ROA, dan Pertumbuhan Laba Perusahaan Terhadap Nilai Perusahaan. Jurnal GeoEkonomi, 13(2), 138–154. https://doi.org/10.36277/geoekonomi.v13i2.224

Sulhan, M., & Pratomo, A. S. (2020). Analysis of The Impact of Financial Performance on Company Value with Corporate Social Responsibility and Good Corporate Governance as Moderating Variables. Management and Economic Journal (MEC-J), 4(2), 163–174. https://doi.org/10.18860/mec- j.v4i2.8196

Suryani, A. (2020). Analisis Leverage Melalui Pertumbuhan Laba dan Pengaruhnya terhadap Nilai Perusahaan. J-MAS (Jurnal Manajemen Dan Sains), 5(1), 88. https://doi.org/10.33087/jmas.v5i1.153

Titman, S., Wessels, R., Franks, J., Mayers, D., Masulis, R., & Torous, W. (1988). The Journal Of Finance * VOL. XLIII, NO. 1 * The Determinants of Capital Structure Choice. The Journal of Finance, 43(1), 1–19.

Wooldridge, J. M. (2018). Econometrics Introductory Modern Approach (Seventh Ed). Library of Congress Control Number: 2018956380.

World Bank. (2024). Commodity markets outlook. World Bank Publications.

Wulandari, A. (2020). Komunikasi Pemangku Kepentingan (Stakeholder Communication). http://eprints.mercubuana- yogya.ac.id/id/eprint/14367/1/Buku Komunikasi Pemangku Kepentingan Jafung.pdf

Yusuf J & Syarief. A.D. (2021). The Role Of Profitability, Capital Structure and Firm Size, towards the Firm Value Of PT. Citra Marga Nusaphala Persada Tbk during period 1995-2017. 1(2), 358–372. https://doi.org/10.38035/DIJEFA

Zhang, X. (2023). Understanding the Importance and Profitability Impact of Debt-to-Equity Ratio on Companies. Advances in Economics, Management and Political Sciences, 7(1), 420–428. https://doi.org/10.54254/2754- 1169/7/20230218