Research Paper
Year: 2022 | Month: January | Volume: 9 | Issue: 1 | Pages: 676-688
DOI: https://doi.org/10.52403/ijrr.20220179
Effects of Good Corporate Governance and Financial Performance on Firm Value with Corporate Social Responsibility as a Moderating Variable in the Manufacturing Companies Listed on Indonesia Stock Exchange from 2014 to 2019
Zulhilmi1, Erlina1, Hasan Basri Tarmizi1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Zulhilmi
ABSTRACT
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.
Keywords: Good Corporate Governance, financial performance, firm value, Corporate Social Responsibility.
[PDF Full Text]