Analysis of Corporate Social Responsibility (CSR) Fund Allocation on the Financial Performance of State-Owned Enterprises in the Financial Services Sector

Managing Corporate Social Responsibility funds has developed into critical for companies, especially State-Owned Enterprises (SOEs), due to their social and environmental responsibilities.With an increasing focus on social responsibility, Understanding the significance of CSR fund allocation on the financial performance of SOEs is essential for informed decisionmaking, particularly in terms of Return on Assets, Return on Equity, Earnings per Share, and also Price Earnings Ratio.This research intends to explore the effects of CSR fund allocation on the financial effectiveness of SOEs operating in the financial services sector, focusing on these key indicators.A quantitative approach using t-tests was employed to investigate the connection between CSR allocation and financial performance.The data was extracted from the financial disclosures and sustainability documentation of the designated enterprises, utilizing a comprehensive analysis of their annual fiscal reports and environmental impact assessments.The results indicate a significant impact of Corporate Social Responsibility fund allocation on ROA, ROE, and PER, while no notable impact was observed on EPS during 2018-2022.