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The Influence of Good Corporate Governance and Corporate Social Responsibility on Firm Value: Evidence from Indonesia

Author

Listed:
  • Farida Farida*

    (Faculty of Economics and Business, Persada Indonesia YAI University, Jakarta, Indonesia)

  • Adhika Ramadhan

    (Faculty of Economics and Business, Persada Indonesia YAI University, Jakarta, Indonesia)

  • Ratih Wijayanti

    (Faculty of Economics and Business, Persada Indonesia YAI University, Jakarta, Indonesia)

Abstract

The company goal is to maximize the shareholders’ prosperity, not just to maximize profit. The fact is that the company not only has economic responsibility but also social responsibility to the community and its environment. The purpose of this study was to analyze the effect of good corporate governance (GCG) and corporate social responsibility (CSR) on the firm value. The research sample of 15 companies was taken using purposive sampling from companies listed in the LQ-45 on the Indonesia Stock Exchange for the period of 2014-2017. This study uses panel data regression analysis with Random Effect model method. GCG is a representation of managerial ownership, institutional ownership, independent commissioner, and audit committee. The results of this study indicate that there is a significant influence between GCG and CSR on firm value simultaneously. Partially, independent Commissioners and CSR each have an influence on the firm value, but there is an anomaly.

Suggested Citation

  • Farida Farida* & Adhika Ramadhan & Ratih Wijayanti, 2019. "The Influence of Good Corporate Governance and Corporate Social Responsibility on Firm Value: Evidence from Indonesia," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 5(7), pages 177-183, 07-2019.
    • Handle: RePEc:arp:ijefrr:2019:p:177-183
    as

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    References listed on IDEAS

    as
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    Keywords

    GCG; CSR; Firm value; LQ-45.;
    All these keywords.

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