The Relationship between Corporate Social Responsibility, Firm Characteristics, and Financial Performance of Maritime Firms in Indonesia: A Path Analysis Approach

Abstract

The aim of this research is to explore the relationship between corporate social responsibility, sales growth, and firm size on capital structure, considering profitability as an intervening variable. This study analyses how corporate social responsibility, sales growth, and firm size influence the capital structure of maritime companies in Indonesia. The research is based on data from 88 Indonesian maritime firms collected over a four-year period. Path analysis is used to estimate the relationships between the variables of interest. The results indicate that sales growth and firm size have a significant impact on capital structure, while corporate social responsibility does not show a significant effect. These findings support the hypothesis that firm characteristics play an important role in enhancing the financial ratios of companies. The effect of corporate social responsibility and firm characteristics is mediated by profitability, which has been shown to intervene in the relationship between corporate social responsibility, sales growth, and firm size on capital structure. This study emphasises the importance of strengthening corporate social responsibility and firm characteristics simultaneously, so that capital structure can become an integral part of a company's sustainability strategy in addressing global environmental challenges.