The Effect of CSR and Liquidity on Stock Returns with Profitability as an Intervening Variable in Banking Companies for the Period 2019 – 2023

This study to analyze the influence of Corporate Social Responsibility (CSR) and liquidity on stock returns with profitability as an intervening variable in banking companies in Indonesia during the period 2019-2023. Although the company's liquidity ratios are used to assess liquidity, the impact of CSR is measured by examining publicly available corporate social responsibility reports. Return on Assets (ROA), the intervening variable, and stock returns, the dependent variable, are used to calculate profitability. The type of data used is quantitative data. The data source utilized in this study is secondary data in the form of financial reports published on the official websites of the banking companies. Purposive sampling is employed to select the banking companies that serve as the research sample. The analytical method used is multiple linear regression with intervening variables to examine the direct and indirect effects among these variables. The results show that partially, CSR has a significant positive effect on stock returns, while the level of liquidity does not have a significant effect. Profitability is proven to be a significant intervening variable in the relationship between stock returns and CSR but not significant in the relationship between stock returns and liquidity. This study implies that banking companies in Indonesia need to pay more attention to the implementation of CSR to enhance financial performance and company value.