The Role of CSR to Influence the Relationship between Institutional Ownership and Managerial Ownership on Firm Value

Abstract

The goal of this study is to figure out whether institutional ownership and managerial ownership influence the company’s value in moderating corporate social responsibility. The study uses data from 43 companies based on the Indonesia Stock Exchange around 2014-2018. The findings show that institutional ownership has a positive effect on firm value while managerial ownership has a negative and significant effect on firm value. Corporate social responsibility can not moderate institutional ownership on firm value. Corporate social responsibility can moderate managerial ownership of company value. As a control variables profitability and leverage have a positive and significant influence on firm value. However, company size as a control variable do not influence on firm value. The observation period is limited to only five years.

Keywords : Institutional Ownership, Managerial Ownership, Firm Value, Corporate Social Responsibility.

DOI: 10.7176/RJFA/10-22-18

Publication date: November 30^th 2019