International Journal of Social Science And Human Research ISSN(print): 2644-0679, ISSN(online): 2644-0695 Volume 06 Issue 01 January 2023 DOI: 10.47191/ijsshr/v6-i1-60, Impact factor- 5.871 Page No: 453-459 IJSSHR, Volume 06 Issue 01 January 2023 www.ijsshr.in Page 453 Corporate Social Responsibility and Dividend Policy in Indonesia : Advent of Firm Size as a Moderator Kisti Nurfitri 1 , Riski Abadi 2 , Rizky Prastya Udipta 3 , Farah Margaretha Leon 4 1,2,3,4 Faculty of Economics and Business Universitas Trisakti, Jakarta ABSTRACT : This research aims to analyze the determinants of dividend policy. The independent variable in this study is corporate social responsibility which will be moderated by variable firm size. While the dependent variable is dividend policy, and the control variables are leverage, growth opportunity, and firm’s age. The sample of this study uses 35 companies listed on the LQ45 Index for the period of 2019-2021. The sampling technique uses purposive sampling and the analysis method uses panel data regression. The results explained that corporate social responsibility, the moderating variable firm size, and growth opportunity do not affect dividend policy. Firm’s age has a significant negative effect on dividend policy. Leverage has a significant positive effect on dividend policy. The implication of the research that has been done is to provide direction for financial managers to consider the benefit of increasing leverage to a strategic investment for a productive assets and business expansion which lead to generate more profit for company which means a positive impact on dividend paid to shareholder. As for investors, investors should pay attention with the maturity of the business and significant amount of CSR cost since these will affects negatively to the company's dividend policy. KEYWORDS: Corporate Social Responsibility, Dividend Policy, Firm Age, Firm Size, Growth Opportunities, Leverage I. INTRODUCTION Corporate social responsibility (CSR) has emerged as a global trend and encouraged companies to build sustainable businesses, the concept of CSR has been introduced worldwide and applied in many countries through various ways (Trihermanto & Nainggolan, 2020). In Indonesia, CSR is mandatory for all registered companies and has been regulated through Law No. 40 of 2007 concerning Limited Liability Companies (article 74 paragraph 1) requiring companies whose business is in the field of and/or related to natural resources to carry out social and environmental responsibility , and Law No.32 of 2009 concerning Environmental Protection and Management which states that every individual who carries out business activities has an obligation to provide information related to environmental protection and management in a true, accurate, open and timely manner and maintain the sustainability of environmental functions. In recent years, CSR has received a lot of attention from academics and business professionals. CSR has been approached as a new strategic option to improve the image, gain a competitive advantage and ultimately increase the value of the company (Sheikh et al., 2022). Companies with high CSR can lower the cost of capital, which in turn can increase incentives for cash holdings or active investments, leading to a decrease in cash dividend payments. In addition, companies with high CSR can reduce risk and increase profitability by reducing transaction costs or strengthening their competitive advantage. Dividend decision-making is not mandatory, but it remains a basic and traditional way for investors to generate a return on investment. Therefore, dividend policy can be a social responsibility attitude towards investors (Oh & Park, 2021). The size of the company as a strong determinant of the company's dividend payment decision because larger companies often have easier and better access, so they can raise funds faster to increase their social responsibility activities in the hope of encouraging a positive image and company reputation so that it can make it easier for companies to enter the capital market and will attract many investors (Abu Siam et al., 2021). Despite the fact that paying dividends is not mandatory in Indonesia, there are standard policies or ways of controlling dividend payments, most of which still depend on the general meeting of shareholders. As a result, companies are free to decide when and how much and how often to pay dividends for a given fiscal year (Abu Siam et al., 2021). For investors, the LQ45 stock index is often used as a reference in determining the direction of investment. However, in the current year the LQ45 index corrected to experience the worst decline reaching 43.01% in March 2020. Therefore, the dividend policy of these companies is also affected. The purpose of this study is to look at the effect of CSR on dividend policy moderated by company size. The novelty of this study is to add the firm age variable as one of the control variables that is considered to be related to dividend policy.