Corporate governance (CG) and corporate social responsibility (CSR) are important subjects for corporate sustainability that affect firm value (FV). At the same time research results in several countries provide diverse empirical evidence. This study analyzes the impact of corporate governance (CG) and corporate social responsibility (CSR) on firm value (FV) through the cost of capital (CoC) in public companies of Indonesia. The research sample includes 27 companies that publish sustainability reports and corporate governance reports, with an observation period from 2010 till 2016. This study presents the analysis of three firm value proxies (Tobin’s q (TQ), Price Earnings Ratio (PER), and Price to Book Value (PBV)). Results of hypotheses testing using Partial Least Squares (PLS) show that CG and CSR have both direct and indirect effects on FV. These findings are consistent for all three firm value assessments. According to direct testing, CG has a negative effect on FV, while CSR has a positive effect. The CoC acts as a mediating variable in this relationship. The CG and CSR have a negative effect on CoC, while CoC has a negative effect on FV. The findings show that CG and CSR can improve the company performance and corporate image internally and externally, thereby increasing the investors` confidence, and companies have the opportunity to obtain inexpensive funding sources that can reduce CoC. A decrease in CoC can increase profitability and have an impact on FV increasing.

Sustainable firm value is the central concept for corporations, including the banking industry. This study examines the effect of profitability and bank size on firm value through capital structure. This study surveyed six banks registered in BUKU 4-member commercial banks operating in Indonesia that have been listed on the Indonesian Stock Exchange and implemented digital banking practices from 2007 to 2019. The six banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank CIMB Niaga, and Bank Panin. Data collection is carried out by tracing the banks’ reports from the Bloomberg system terminal. Data analysis used a two-stage least squares technique. The results showed that profitability negatively and significantly affected the capital structure with a coefficient of –0.374. Moreover, bank size influences the capital structure with a negative coefficient value of –0.334. In addition, profitability positively affects firm value with a coefficient value of 0.387. Furthermore, bank size influences capital structure with a beta coefficient value of 0.158. Finally, the bank size affects firm value with a coefficient value of –0.419. These findings provide an insight for bank management to enhance firm value by assessing profitability, bank size, and capital structure. This study also contributes to the ongoing research in financial management.

The research intends to minimize agency conflict through causality effects of managerial ownership, leverage, and dividend policy, where agency conflict is still interesting issue to discuss, as it concerns the principals’ and agents’ interests. The research covers 33 go-public manufacturers in Indonesia Stock Exchange. It involves 198 samples in the period 2010–2015. It applies saturation sampling and balanced panel data. For analysis model, it applies Granger bidirectional/simultaneity analysis, with variables of managerial ownership, leverage and dividend policy.The research shows that: 1) there is no bidirectional causality between managerial ownership and leverage (5%); 2) there is no bidirectional causality between managerial ownership and dividend policy (5%); 3) there is no bidirectional causality between leverage and dividend policy (10%).

This study aims to analyze the implementation of mudaraba financing at Sharia banks, to consider the relationship between a principal and an agent in mudaraba financing at Sharia banks, and to explore efforts to optimize the implementation of mudaraba financing at Sharia banks.This research was conducted at the Bank Muamalat Ternate Branch. The study used a qualitative method of single case study approach. The analysis used is an interactive model developed by Miles and Huberman. Research result exhibits the following:1) The implementation of mudaraba financing was not in accordance with sharia implementation requirement, because there is still a gap in the income sharing system that causes the contract of mudharabah financing cannot be continued.2) A principal has more information than an agent, because the agent has limited information especially in terms of that about cooperation instrument (mudharabah financing), while the principal is way more about data on that cooperation instrument.3) Optimizing the implementation of mudaraba financing is needed by improving mudaraba financing governance. It is conducted by assigning consultants in mudaraba financing. The consultant has an active role and formally is directly involved in the mudharabah financing, but its characteristic only gives consideration and advice to shahibul maad and mudharabah as the key player in the mudharabah financing.

The purpose of this study is to examine and analyze the perspective of the Agency Theory in the formulation and implementation of local government budgets. This research was conducted at regencies / cities in Banten employing survey method and regression analysis in hypothesis testing. The population was all regencies / cities in Banten. Selection of the sample was the entire population (census). Data consisted of secondary data and was classified as panel data; covering the cross section and time series data. Sources of data were from DPKD 1 , Bappeda 2 at regencies and cities, and the Central Bureau of Statistics in Banten from 2009 to 2014. The analysis was done using Path Analysis and Partial Least Square (PLS). The findings indicate that: (1) the change of PAD 3 does not affect the Opportunistic Behavior of the Legislators; (2) the amendment to the Budget of DPRD 4 positively affects the Opportunistic Behavior of the Legislators; (3) budget decentralization affects Regional Financial Performance; (4) budget decentralization does not affect the Local Government Performance; and (5) Regional Financial Performance affects Local Government Performance. Analysis on the Agency Theory Perspective shows that: (1) budget allocated for DPRD and infrastructure has increased, while budget on health and education has decreased; this indicates the Opportunistic Behavior of Legislators; and (2) when it comes to budget policies, the executive and legislative tend to practice moral hazard for their own self-interest; the fact reveals much bigger compared to development expenditures in APBD 5 . The decisions are related to the contracts given to outside parties, which can produce rente 6 in the form of commissions. KEY WORDSThe perspective of the Agency Theory in public budgeting, opportunistic behavior of the legislators, decentralized budget, regional financial performance, local government performance Opportunistic behavior may occur at all levels of public budgeting, from the planning to the payment of public funds. Political corruption may occur in the local budgeting process where political decisions are very dominant, done by diverting public resources allocation (Garamfalvi, 1997). Corruption in the implementation of the budget is administrative corruption as administrative decision is more dominant. In the end, political corruption will lead to administrative corruption. Opportunistic behavior brings much impact on budget allocation decisions for capital projects (Tanzi and Davoodi, 2002).