CSR, Firm Value, and Financial Fraud: A Risky Relationship

DOI

10.2991/978-94-6463-994-0_31How to use a DOI?

Keywords

CSR; Firm Value; Financial fraud; Misstatement

Abstract

This study explores the effect of Corporate Social Responsibility (CSR) on firm value, with financial fraud serving as a moderating variable. It seeks to address inconsistencies in prior research by examining whether financial fraud weakens the positive relationship between CSR and firm value. The study introduces financial fraud—measured using the F-score—as a moderating factor that captures the likelihood of misstatements in financial reporting, a critical issue within the Indonesian capital market. Using a quantitative approach, moderated regression analysis was conducted on secondary data from 388 non-financial firms listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. CSR data were obtained from the CSRHub database, while firm value was proxied by the Price-to-Book Value (PBV) ratio. The results indicate that CSR has a significant positive influence on firm value; however, this effect diminishes when financial fraud is present. These findings suggest that financial irregularities can undermine the credibility and effectiveness of CSR initiatives. The study concludes that although CSR contributes to enhancing firm value, its benefits depend on the integrity and transparency of financial reporting. The implications highlight the essential role of ethical financial practices in preserving corporate reputation and maximizing the long-term impact of CSR.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Audrey Natasha Prabowo
AU  - Rizky Eriandani
PY  - 2026
DA  - 2026/02/23
TI  - CSR, Firm Value, and Financial Fraud: A Risky Relationship
BT  - Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
PB  - Atlantis Press
SP  - 455
EP  - 467
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-994-0_31
DO  - 10.2991/978-94-6463-994-0_31
ID  - Prabowo2026
ER  -