Mediation Role of Corporate Social Responsibility on Corporate Governance and Firm Value: Evidence from Indonesia Firms
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 5
Abstract
This study aims to examine the mediating role in corporate governance relations and firm value. The research was conducted on companies that participated in the CGPI program and published sustainability reports. Observation period 2011 - 2015. The results show that overall corporate social responsibility was not proven to mediate the relationship between corporate governance and company value as measured by NPM. Furthermore, corporate social responsibility does not mediate the relationship between corporate governance and corporate value as measured by ROE. Improving corporate governance will increase corporate social responsibility and corporate value, occurring in the measurement of company value with ROE. This can be explained that in carrying out corporate governance and ethical behavior the company always pays attention to long-term sustainability to increase company assets from the results of company operations reflected in ROE. Company value can be maximized in a company that is adapted to the principles of corporate governance and prioritizes the interests of stakeholders by carrying out corporate social responsibility.
Authors and Affiliations
Kartika Hendra Titisari, Moeljadi . , Kusuma Ratnawati, Nur Khusniyah Indrawati
Keywords
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- EP ID EP414916
- DOI 10.9790/5933-0905017177.
- Views 180
- Downloads 0
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Mediation Role of Corporate Social Responsibility on Corporate Governance and Firm Value: Evidence from Indonesia Firms
This study aims to examine the mediating role in corporate governance relations and firm value. The research was conducted on companies that participated in the CGPI program and published sustainability reports. Observat...