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The Importance of Corporate Social Responsibility and Financial Performance for the Value of Banking Companies in Indonesia

Author

Listed:
  • Dwi Ermayanti Susilo
  • Grahita Chandrarin
  • Boge Triatmanto

Abstract

Purpose: This study aims to determine the influence of the importance of corporate social responsibility and financial performance to the value of banking companies in Indonesia. Design/Methodology/Approach: This research was conducted on 30 companies engaged in Banking in Indonesia listing on JSE 2010-2016. Findings: The results show that corporate social responsibility and financial performance have influenced the value firm of banking companies in Indonesia. Practical Implications: Indonesian banks must strengthen their capital structure and improve efficiency in order to compete with foreign banks. The company's goal is to increase the company's value or the growth of the company. Originality/Value: The results highlighted that the higher the value of corporate social responsibility issued by the company the better the performance of the company, the better the value of firm generated by Indonesian Banking companies.

Suggested Citation

  • Dwi Ermayanti Susilo & Grahita Chandrarin & Boge Triatmanto, 2019. "The Importance of Corporate Social Responsibility and Financial Performance for the Value of Banking Companies in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 231-238.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:2:p:231-238
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    References listed on IDEAS

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    1. V.M. Morais Pereira & J.A. Candeias Bonito Filipe, 2018. "Quality of Board Members’ Training and Bank Financial Performance: Evidence from Portugal," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 47-79.
    2. Fama, Eugene F, 1978. "The Effects of a Firm's Investment and Financing Decisions on the Welfare of Its Security Holders," American Economic Review, American Economic Association, vol. 68(3), pages 272-284, June.
    3. repec:ers:journl:v:vi:y:2018:i:3:p:47-79 is not listed on IDEAS
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    Cited by:

    1. Khaled Khalaf Alafi, 2023. "The Impact of ESG on Strategic Success in Jordanian Islamic Banks," International Review of Management and Marketing, Econjournals, vol. 13(1), pages 1-10, January.

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    More about this item

    Keywords

    Corporate social responsibility; financial performance; corporate value.;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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