The Influence of Corporate Governance and Investment Opportunity Set on Firm Value: CSR as Moderating Variable
DOI:
https://doi.org/10.35134/jbe.v6i3.30Keywords:
CSR, independent board of commissioners, investment opportunity set, Institutional Ownership, audit committee, firm valueAbstract
Abstract
The object of this study is a manufacturing company listed on the Indonesia Stock Exchange for the period 2016-2020 with a total population of 196 companies. The sample of this research is 44 companies that meet the criteria based on purposive sampling. The analysis technique uses multiple linear regression.The results of this study there is a significant relationship between the independent board of commissioners on firm value. Institutional ownership has no effect on firm value. There is a significant relationship between the audit committee and the investment opportunity set on firm value. The results of other studies indicate that there is an influence of the CSR moderating variable between the independent board of commissioners' relationship to firm value. It is different with institutional ownership that has no effect on the value of the company which is moderated by CSR. There is a significant effect between the audit committee and the investment opportunity set on firm value moderated by CSR in manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period.
Keywords: CSR, independent board of commissioners, investment opportunity set, institutional ownership. audit committee, firm value.
References
Al-Gamrh, B., Ku Ismail, KNI, Ahsan, T., & Alquhaif, A. (2020). Investment opportunities, corporate governance quality, and firm performance in the UAE. Journal of Accounting in Emerging Economies, 10(2), 261–276. https://doi.org/10.1108/JAEE-12-2018-0134
Al Farooque, O., Buachoom, W., & Sun, L. (2020). Board, audit committee, ownership and financial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079
Arianti, NPA, & Putra, PMJS (2018). The Effect of Profitability on the Relationship of Corporate Social Responsibility & Good Corporate Governance on Company Value. Scientific Journal of Management & Accounting, 24(1), 20–46.
Hakim, L. (2019). Effect of Return on Assets, Investment Opportunity Set and Good Corporate Governance on LQ45 Firm Value. IQTISHADUNA: Scientific Journal of Economics …, 8(1), 33–42. http://ejournal.stiesyariahbengkalis.ac.id/index.php/iqtishaduna/article/view/150
Jensen, MC, & Meckling, WH (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics. https://doi.org/10.1016/0304-405X(76)90026-X
Kabir, R., & Thai, HM (2017). Does corporate governance shape the relationship between corporate social responsibility and financial performance? Pacific Accounting Review, 29(2), 227–258. https://doi.org/10.1108/par-10-2016-0091
Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147–169. https://doi.org/10.1108/IJLMA-03-2019-0076
Purnamawati, IGA, Yuniarta, GA, & Astria, PR (2017). Good Corporate Governance And Its Influence On Company Value Through Corporate Social Responsibility Disclosure. Journal of Finance and Banking, 21(2), 276–286. https://doi.org/10.26905/jkdp.v21i2.505
Putri, KAT, & Mardenia, L. (2019). The Influence of GCg, CSR, Profitability And Company Size on Company Value. Scientific Journal of the Wahana Accounting, 14(2), 156–169. https://doi.org/doi.org/10.21009/wahana.14.024
Sugiyono. (2014). Data collection technique. In Quantitative, Qualitative and R&D Research Methods. https://doi.org/10.3354/dao02420
Surya, I., & Yustiavandana, I. (2008). Implementation of Good Corporate Governance: Overriding Privileges for Business Continuity (First). Kencana Prenada Media Group.
Vira, AN, & Wirakusuma, MG (2019). The Effect of Corporate Social Responsibility Disclosure on Company Value With Good Corporate Governance as Moderating. E-Journal of Accounting, 26, 1299. https://doi.org/10.24843/eja.2019.v26.i02.p17
Wati, LN, Syahdam, GR, & Prambudi, B. (2019). The Role of Disclosure of CSR and GCG Mechanisms on Financial Performance on Company Value. Journal of Ecodemica: Journal of Economics, Management, And Business, 3(2), 98–110. https://doi.org/10.31311/jeco.v3i2.5635
Widodo, C. (2019). The Influence of Good Corporate Governance on Company Value with Moderation of Corporate Social Responsibility. Parameter Journal, 4(1).
Wulanningsih, S., & Agustin, H. (2020). The Effect of Investment Opportunity Set, Company Growth, and Profitability on Firm Value. Exploratory Journal of Accounting, 2(3), 1–21.
Yuningsih, NN, & Novitasari, NLG (2020). Effect of Managerial Ownership, Institutional Ownership, Dividend Policy and Investment Opportunity Set on Company Value of Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) 2016-2018. Journal of Applied Management and Accounting Science, 01(2), 76–91.
Zhang, Y., Chong, G., & Jia, R. (2020). Fair value, corporate governance, social responsibility disclosure and banks' performance. Review of Accounting and Finance, 19(1), 30–47. https://doi.org/10.1108/RAF-01-2018-0016
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 UPI YPTK Journal of Business and Economics
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal of Business and Economics (JBE) UPI YPTK
