Good Corporate Governance, Corporate Social Responsibility, Firm Value and Financial Performance as Moderating Variable

Mukhtaruddin Mukhtaruddin(1), Ubaidillah Ubaidillah(2), Kencana Dewi(3), Arista Hakiki(4), Nopriyanto Nopriyanto(5),


(1) Faculty Economics, Universitas Sriwijaya, Indonesia
(2) Faculty Economics, Universitas Sriwijaya, Indonesia
(3) Faculty Economics, Universitas Sriwijaya, Indonesia
(4) Faculty Economics, Universitas Sriwijaya, Indonesia
(5) Faculty Economics, Universitas Sriwijaya, Indonesia

Abstract

Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) can assist the company in facing the challenges and risks as a strategy in increasing the firm value (FV) by building a good image from stakeholders’ view. This study aims to determine the effect of GCG and CSR on FV with financial performance as a moderating variable. The population of this research is banking companies listed in Indonesia Stock Exchange (IDX) for 2011-2015.The sample consisted of 23 companies which were selected by purposive random sampling. This data is analyzed by using SmartPLS 2.0 with Partial Least Square approach. The results of this study indicate that GCG has a positive insignificants effect on FV; otherwise CSR has a negative significants effect on FV. Financial performance has significantly strengthened the relationship between GCG and CSR on FV. Using 23 sample of banking companies was the limitation of this research.

Keywords

good corporate governance, corporate social responsibility, firm value, financial performance, banks

Dimension

Altmetric

PlumX


DOI: https://doi.org/10.28992/ijsam.v3i1.74

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.