Corporate Social Responsibility and Stock Price Reactions

This research aims to investigate the impact of CSR disclosure on share prices, mediated by profitability. This research uses a quantitative method and gathering secondary data from OSIRIS and Company Sustainability Reports on the Indonesia Stock Exchange (BEI) website, as well as relevant company websites. This study's sample consists of 99 mining companies from 2018 to 2022. To determine the indirect effect of the mediating variable, this study used multiple regression analysis using the IBM SPSS and the Sobel test. The findings show that CSR Disclosure has no significant effect on share prices due to the low proportion of CSR disclosures in the company's sustainability report. Meanwhile, CSR Disclosure has a significant negative effect on profitability, and profitability has a significant positive effect on share prices. Profitability can mediate the relationship between CSR Disclosure and share prices.