THE INFLUENCE OF CORPORATE GOVERNANCE, CORPORATE SOCIAL RESPONSIBILITY, FIRM SIZE ON FIRM VALUE: FINANCIAL PERFORMANCE AS MEDIATION VARIABLE

Choirun Nisful Laili, Atim Djazuli, Nur Khusniyah Indrawati

Abstract


This study aims to examine and analyze the effect of directly or indirectly between the variables of corporate governance, corporate social responsibility, firm size, the financial performance of the company with the sample value amounted to 53 companies engaged in the manufacturing sector with years of observations from 2015 to 2017. Methods of data analysis using path analysis with AMOS software 24. Corporate governance is proxied by the Corporate Governance Index (CGI), corporate social responsibility is proxied by the Corporate Social Responsibility Index (CSRI), firm size is proxied by Size, financial performance proxied by Return on Assets (ROA), and the value of the company is proxied by Tobin’s Q. The results showed that the direct effect of the test results show that 1) corporate social responsibility, firm size effect on financial performance. 2) Corporate social responsibility, firm size, financial performance affects the value of the company 3) corporate governance does not affect the company’s financial performance and value. As for the indirect effect of the test showed that corporate governance, corporate social responsibility, firm size, to the value of the company through the financial performance of no significant impact. Therefore, the three did not mediate financial performance affects the value of the company 3) corporate governance does not affect the company’s financial performance and value. As for the indirect effect of the test showed that corporate governance, corporate social responsibility, firm size, to the value of the company through the financial performance of no significant impact. Therefore, the three did not mediate financial performance affects the value of the company 3) corporate governance does not affect the company’s financial performance and value. As for the indirect effect of the test showed that corporate governance, corporate social responsibility, firm size, to the value of the company through the financial performance of no significant impact. Therefore, the three did not mediate.

Keywords


Corporate governance; corporate social responsibility; Company value; financial performance

Full Text:

PDF

References


Arafat, M. Y., Warokka, A. Abdullah, H. H., and Septian, R. R. 2012. The triple bottom line effect on emerging market companies: A test of corporate social responsibility and firm value relationship. Journal of Southeast Asian Research, 2012 (2012), pp.1-15.

Agustina Iin. 2016. The Role of Risk and Sustainability Management in the Effects of Corporate Governance on Firm Value. Journal of Research in Business and Management Volume 4 Issue 6 (2016) pp: 14-32 ISSN (online): 2347-3002.

Alkausar Bani. 2017. Influence of Corporate Governance Aggressiveness against Taxes with Related Parties Transactions inas moderating. The UB: Malang.

Azis, U. S. A. 2016. Influence of Corporate Governance on the Firm value of Financial Performance as an intervening variable in Manufacturing Companies listed on the Indonesia Stock Exchange 20102014. Doctoral dissertation. Alauddin State Islamic Univeritas Makassar.

Buzzell, Robert D. and Bradley T. Gale. 1987. The PIMS Principles. New York: The Free Press.

Bidhari, S. C., Salim, U., Aisjah, S., and Java, E. 2013. Effect of corporate social responsibility information disclosure on financial performance and firm value in the banking industry at Indonesia stock exchange listed. European Journal of Business and Management, 5 (18), pp.39-46.

Choi, J. S., Kwak, Y. M., and Choe, C. 2010. Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35 (3), pp.291-311.

Dang, C., Li, Z. F. and Yang, C. 2018. Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 86, pp.159-176.

Freeman, R. E. 1983. Strategic management: A stakeholder approach. Advances in strategic management, 1 (1), pp.31-60.

Jamali, Hisnol. 2014. Influence of Corporate Governance and Social Responsibility Toward Financial Performance As Mediation Variables (Study at Manufacturing Companies Listed on the Indonesia Stock Exchange). Dissertation. Doctoral Program of the Faculty of Economics and Business Universitas Brawijaya

Liebenberg A. P. and R. E. Hoyt. 2003. The Determinants of Enterprise Risk Management: Evidence from the Appointment of Chief Risk Officers. Risk Management and Insurance Review, 6 (1): 37-52.

Narullia, D. and Subroto, B. 2018. The Value Relevance of Accounting Information and Corporate Social Responsibility In Indonesia and Singapore. Application Management Journal, 16 (1), pp.9-19.

Garay, U.and Gonzales, M. 2008. Corporate Governance and Firm Value: The Case of Venezuela. Journal Compilation Vol. 16 (3), 194-209.

G Martini, Ni Nyoman., Moeljadi, Djumahir, and Djazuli, Atim. 2014. Factors Affecting Value of Indonesia Public Firms Manufacturing Firms. International Journal of Business and Management Invention, 3 (2), pp: 35-44.

Ghergina, Stefan C., et al. 2015. An Empirical Research on the Relationship between Corporate Social Responsibility Ratings and US Listed Companies Value. Journal of Economics Studies and Research, 20 (15): 11 pages.

Ghosh, Saurabh and Arijit Ghosh. 2008. Do Leverage, Profitability Dividend Policy and Influence the Future Value of Firm? Evidence from India. Electr oni c copy avail abl e at ht tp: //ssrn.com/abstract=1158251

Prakoso, Rizki Yudi. 2012. Effect of Characteristics of the Company’s Corporate Social Responsibility Disclosure Size and Its Impact on Firm Value. The UB: Malang.

Prasetya, Heru Dwi. 2017 Corporate Social Responsibility Disclosure and Financial Performance: Meta Analysis. The UB: Malang.

Pratiwi, Nadya and Sri Rahayu. 2015. The Influence Of Profitability, Leverage, Good Corporate Governance And Firm Size Firm Toward Value (Case Study On Firm Listed In Which Has Indonesiastock Exchange Corporate Governance Perception Index (CGPI) Score Forperiod 2010-2013). ISSN: 2355-9357 e-Proceedings of Management: Vol.2, No.3 December 2015 Page 3146.

Rosiliana, Kadek, G. A. Yuniarta, and N. A. S. Darmawan. 2014. Influence of Corporate Social Responsibility Corporate Financial Performance (Empirical Study on LQ45 Company in Indonesia Stock Exchange Period 2008-2012). E-Journal S1 Accounting Education University Ganesha 2 (1): 1-12.

Sari, Truely Purnama and Sedianingsih. 2014. Effects of Good Corporate Governance Performance against Finance and Corporate Value on Participant Survey of Corporate Governance Perception Index. Journal of Economics and Business Year XXIV, No. August 2nd, 2014.

Sari, Wahyu Aprilia, Ragin Siti Handayani, and Nila Ferdowsi Nuzula. 2016. Influence of Corporate Social Responsibility Disclosure on Financial Performance and Value (Comparative Study on Multinational CompaniesListed in Indonesia Stock Exchange and Bursa Malaysia Year 2012-2015). Faculty of Administrative Sciences UB Malang.

Sheikh, Nadeem Ahmed, Zongjun Wang, and Shoaib Khan. 2013. The Impact of Internal Attributes of Corporate Governance on Firm Performance Evidence from Pakistan. International Journal of Commerce and Management, 23 (1): 38-55.

Septianto, Reza. 2016. Influence of Corporate Governance on Firm Value through Mediation Capital Structure and Financial Performance (Study on Sub-Sector Company Property and Real Estate listed on the Stock Exchange). The UB: Malang.

Siagian, Ferdinand, Sylvia V. Siregar, and Yan Rahadian. 2013. Corporate Governance, Reporting Quality, and Firm Value: Evidence from Indonesia. Journal of Accounting in Emerging Economies, 3 (1): 4-20.

Wahyudi, I. and Azheri, B., 2008. Corporate social responsibility: Principles, regulation and implementation. Institute for Strengthening Transition Society Studies (In-Trans Institute): Institute for Sup- porting Institution and Research Development Programe (Inspire).

Wardhani, Rulyanti Susi. 2013. Effect of CSR Disclosure Of Values Company with Financial Performance As an intervening variable (Case Study Manufacturing Companies Listed on the Stock Exchange). ISSN: 1412-5366. JEAM Vol XII No. 1/2013

Weshah, Solomon R. Ahmad A. Dahiyat, R. Mohammed Abu Awwad, and Emad S. Hajjat. 2012. The Impact of Adopting Corporate Social Responsibility on Corporate Financial Performance: Evidence from Jordanian Banks. Interdisciplinary Journal of Contemporary Research in Business, Vol 4 (5): 34-44.

Wibisono, Joseph. 2007. Dissecting Concepts & Applications CSR. Fascho Publishing, Gresik.

Widyatama, Arif. 2013. Good Corporate Governance to Corporate Social Responsibility and Financial Performance (Empirical Study On Manufacturing Companies Listed in Indonesia Stock Exchange). The UB: Malang.

Wu, M. and Shen, C. 2013. Corporate Social Responsibility In The Banking Industry Motives And Financial Performance. Journal of Banking & Finance 37 (2013) 3529-3547.

Which, FJ, Lin, C. W., and Chang, Y. N. 2010. The linkage between corporate social performance and corporate financial performance. African Journal of Business Management, 4 (4), pp.406-413.

Yuniasih, Ni Wayan., And Made Gede Wirakusuma. 2007. Effect of Financial Performance on the Corporate Value Disclosure of Corporate Social Responsibility and Good Corporate Governance As moderating variables. Accounting Department, University of Udayana.

Joseph, Yulia Yunita. 2016. Determination of CSR Disclosure and Its Effect on Firm Value. The UB: Malang.




DOI: http://dx.doi.org/10.21776/ub.jam.2019.017.01.20

Refbacks

  • There are currently no refbacks.