Pengaruh Slack Resources dan Arus Kas Bebas terhadap Biaya Tanggung Jawab Sosial Perusahaan dengan Tingkat Utang sebagai Variabel Moderasi

Abstract

This research aims to analyze the influence of slack resources and free cash flow on corporate social responsibility (CSR) expenditure, as well as to examine the moderating effect of leverage on these relationships. The study is motivated by companies' desire to maintain social legitimacy through the optimization of CSR activities supported by the allocation of financial resources. It also considers the potential constraints on this allocation due to high levels of debt. The research object comprises energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. A purposive sampling technique was used to select a sample of 96 observations. Hypothesis testing was conducted using panel data regression and Moderated Regression Analysis (MRA). The results indicate that slack resources have a positive effect on CSR expenditure, while free cash flow does not. Furthermore, leverage does not moderate the influence of slack resources and free cash flow on CSR expenditure. The research suggests that management exercises more caution in allocating financial resources closely associated with shareholders (free cash flow and leverage) to minimize agency conflicts. The implications of this study highlight the importance of careful financial resource allocation planning for management to optimize the role of social responsibility. Additionally, it offers a new perspective for stakeholders, particularly shareholders, suggesting that CSR expenditure is an investment rather than a waste, thereby necessitating shareholder support for management to optimally implement their social responsibilities.