Analysis of the Effect of Good Corporate Governance, Corporate Social Responsibility and Financial Performance on Corporate Values (The Case of the Banking Sector on the Indonesia Stock Exchange)

Abstract

The purpose of this study is to determine the effect of the mechanism of Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), and the corporate's financial performance on corporate values, the case of the banking sector in the Indonesia Stock Exchange (IDX).

Based on the complete banking data listed on the Indonesia Stock Exchange (IDX) processed by using Eviews software, the results of the research are as follows:

The Independent Board of Commissioners (IDC) influences the values of banking companies in Indonesia, while Institutional Ownership (IO), Corporate Social Responsibility (CSR), and Financial Performance (FP) of banking companies do not affect the corporate values of banking companies in the Indonesia Stock Exchange (IDX).

Keywords: Good Corporate Governance, Corporate Social Responsibility, Financial Performance, and Corporate Value.

DOI: 10.7176/JESD/10-16-16

Publication date: August 31^st 2019