The Influence of Good Corporate Governance and Corporate Social Responsibility on Firm Value: Evidence from Indonesia (original) (raw)
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https://www.ijrrjournal.com/IJRR\_Vol.9\_Issue.1\_Jan2022/IJRR-Abstract079.html, 2022
The objective of this research is to investigate and to analyse the effect of good corporate governance and financial performance on firm value, with corporate social responsibility serving as a moderating variable in the manufacturing companies listed on Indonesia Stock Exchange from 2014 to 2019. This causal comparative research makes use of secondary data, which is analyzed using panel data regression analysis with the Eviews 10 application. The samples of 33 companies are drawn from a population of 171 using a purposive sampling method based on the criteria of manufacturing companies that consistently listed on the Indonesia Stock Exchange. The findings show that managerial ownership has a positive and insignificant effect on firm value, institutional ownership has a positive and significant impact, an independent commissioner has a positive and insignificant effect, an audit committee has a positive and insignificant effect, and financial performance has a positive and significant effect on firm value. Meanwhile, corporate social responsibility has a positive effect but is insignificant in moderating the relationship between good corporate governance and financial performance on firm value.
To increase a firm value may create a conflict among owners. A certain mechanism is required to manage the company and this company is responsible for managing the conflicts and their negative effects. This research is aimed at identifying the influence such mechanism of good corporate governance (commissaries board, independent commissaries board, institusional owners, managerial owners, and audit committee) and CSR disclosure towards firm value. The population of this research is all companies listed in Indonesia Stock Exchange in 2010-2011, which expose and report their CSR activities. The sample consists of 33 companies selected by purposive sampling technique. The data are then analyzed descriptively and statistically. The research results show that the commissaries board, independent commissaries board, institusional owners, managerial owners, and audit committee, and CSR disclosure have a positive and insignificant influence towards firm value whereas the managerial ownership has a positive and significant influence, and the independent commissaries board has a negative and insignificant influence towards firm value. This research has a limitation because its sample consists of 33 companies and the time period covers only 2 years.
Investment Management and Financial Innovations, 2019
Corporate governance (CG) and corporate social responsibility (CSR) are important subjects for corporate sustainability that affect firm value (FV). At the same time research results in several countries provide diverse empirical evidence. This study analyzes the impact of corporate governance (CG) and corporate social responsibility (CSR) on firm value (FV) through the cost of capital (CoC) in public companies of Indonesia. The research sample includes 27 companies that publish sustainability reports and corporate governance reports, with an observation period from 2010 till 2016. This study presents the analysis of three firm value proxies (Tobin’s q (TQ), Price Earnings Ratio (PER), and Price to Book Value (PBV)). Results of hypotheses testing using Partial Least Squares (PLS) show that CG and CSR have both direct and indirect effects on FV. These findings are consistent for all three firm value assessments. According to direct testing, CG has a negative effect on FV, while CSR h...
Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Melalui Corporate Social Responsibility
2017
This research aims to obtain empirical evidence about the direct effect of Good Corporate Governance (GCG) on firm value and the indirect effect of GCG on firm value through Corporate Social Responsibility (CSR). Good Corporate Governance elements which were used in this research, board of director size, number of board of director meetings, number of board independent commissioner, number of audit committee meetings, nomination and remuneration committee. This research also used firm’s size, firm’s age and type of industry as control variable. The population of this research was all companies that listed in Indonesian Stock Exchange (IDX) in 2010. Total sample in this research are 215 firms that selected with purposive sampling. Structural Equation Modeling (SEM) was used to analyze the direct and indirect effect of GCG on firm value through CSR. The result of this research indicates that the GCG which shown as number of board of director have significant direct effect influence on...
International Journal of Advances in Scientific Research and Engineering (ijasre), 2020
This research aimed to determine the effect of Corporate Social Responsibility and Managerial Ownership on Corporate Valuessimultaneously or partially. Data were collected using a purposive sampling method on manufacturing companies in the consumer goods industry sectorlisted on the IDX during 2015-2019. The population covered 34 companies, 24 of which were chosen as the samples due to meeting the specified criteria. Corporate Social Responsibility in this research was calculated by Corporate Social Disclosure Index while management ownership was obtained by knowing the percentage of share ownership by boards of managers. Corporate values in this research were calculated by the value of Tobin's Q. The results of this research indicate that Corporate Social Responsibility and Management Ownership simultaneously did not affect corporate values. However, partially, Corporate Social Responsibility had a positive effect on corporate values while managerial ownership did not affect corporate values.
2020
The idea behind corporate social responsibility (CSR) is that companies not only have economic and legal obligation to shareholders but also obligations to stakeholders. Social responsibility (CSR) has close links with good corporate governance, like two sides of a coin; both have a strong foothold in the business world. The aim of this research was to analyze corporate social responsibility and good corporate governance to financial performance that influence the value of manufacturing companies sector basic industry and chemicals in 2015-2017, listed on the Indonesia Stock Exchange. The results of this study stated that Corporate Social Responsibility has a positive effect on financial performance; Good Corporate Governance does not affect financial performance. Corporate Social Responsibility has a positive effect on company value. Good Corporate Governance has a positive effect on company value. Financial performance has no effect on firm value. Financial performance does not mediate the relationship between Corporate Social Responsibilities to firm value. Financial performance does not mediate the relationship between Good Corporate Governance and firm value.
2021
This study aims to determine the effect of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR disclosure) on firm value. The object of this research is a state-owned company (BUMN) listed on the Indonesia Stock Exchange (BEI) for the 2014-2018 period. The sample selection method used in this research is purposive sampling method and the analysis technique used is multiple linear regression which includes classical assumption tests and hypothesis testing. The total sample in the study was 20 companies. The data processing in this study used the Eviews version 10. The results showed that the simultaneous effect of Good Corporate Governance and Corporate Social Responsibility on firm value. In addition, this study proves that partially institutional ownership has an effect on firm value, while CSR disclosure has no effect on firm value.
Academy of Accounting and Financial Studies Journal, 2019
The aim of this study is to investigate the impact in Indonesia between: (a) the Indonesian Index of Corporate Governance, (b) corporate social responsibility, and (c) financial performance. The sample is companies in the Indonesia Institute for Corporate Governance (IICG). This study uses secondary data from the annual reports from 2014 to 2016. Our first result shows a significant impact between corporate governance and financial performance. Our second result shows that corporate governance has a significant effect on corporate social responsibility. However, our final result shows that corporate social responsibility does not significantly affect financial performance. Regulation by the government, namely the Indonesian Index of Corporate Governance (IICG), which is currently voluntary, in the future may become compulsory. There are two limitations of this study. The first limitation is that not all companies joined Indonesian Institution for Corporate Governance (IICG). The sec...
East African Scholars Journal of Economics, Business and Management, 2022
The purpose of this study was to analyze the comparison of the influence of Good Corporate Governance, Return on Asset, Net Profit Margin on corporate value with Corporate Social Responsibility as a moderation variable of empirical studies on banking and mining companies listed on the Indonesia Stock Exchange. The study used 26 banking companies and 15 mining companies listed on the Indonesia Stock Exchange selected using the Purposive Sampling method in the period 2016-2020. This research data was analyzed using multiple regression analysis methods. The results showed that simultaneously the influence of variables Good Corporate Governance, Return On Asset, Net Profit Margin, and Corporate Social Responsibility positively affect the value of banking and mining companies. Return on Asset partially has no significant effect on the value of banking companies, while Return On Asset partially has a significant positive effect on the value of mining companies. Net Profit Margin partially...
Jurnal Manajemen
Today's company competition in Indonesia is getting tighter and more competitive. The company is an organization that has a specific purpose in running its business, every company wants to be able to meet the welfare and interests of its members and shareholders. This activity is known as Social Responsibility. Corporate social responsibility (CSR) emerged as an idea, companies are no longer faced with responsibilities that are based on a single bottom line, namely the value of the company which is reflected in its financial condition only. But the company's responsibility must rest on the triple bottom line, where the bottom line apart from finance is also social and environmental, because financial conditions alone are not enough to guarantee the company's value grows in a sustainable manner. The purpose of this study was to identify the effect of corporate social responsibility (CSR) disclosure on firm value with financial performance as a moderating variable. Data c...