Corporate Governance Mechanism and Corporate Social Responsibility on Firm Value

Abstract

This study aims to empirically examine the effect of corporate governance and corporate social responsibility on corporate value using agency perspectives and stakeholder theory. Corporate governance is measured using an independent commissioner, a board of directors, and an audit committee. The research data were obtained from manufacturing companies listed on the Indonesia Stock Exchange in 2015-2017. The test results using multiple linear regression indicate that corporate governance as measured by the board of directors and audit committee has a positive effect on company value. Meanwhile, the existence of independent commissioners in the sample companies did not have an impact on increasing the value of the company. The same result also occurs for CSR variables, which have not been proven to affect the firm's value. The results of the sensitivity analysis show that the research model is robust, both by measuring PBV or Tobin's Q for the dependent variable. Keywords: independent commissioner, board of directors, audit committe, corporate social responsibility, firm value

Corporate Governance Structures and Probability of Financial Distress: Evidence From Indonesia Manufacturing Companies

“…In accordance with agency theory, good quality supervision reduces opportunistic behavior by managers as agents. One effort to create a good oversight mechanism is the existence of an audit committee in a company (Widiatmoko, 2020). The audit committee is responsible to the board of commissioners with the purpose of assisting them in carrying out the oversight function of running of the company.…”

Corporate Governance Mechanism on Intellectual Capital Disclosure and Firm Value

“…The variables in this study consist of endogenous variables, namely firm value, mediating variables, namely intellectual capital disclosure, and exogenous variables which include independent commissioners, audit committee, institutional ownership and managerial ownership as proxies for corporate governance mechanisms. Firm value in this study is measured using price to book value (PBV), which is the ratio between stock market prices and book value [20]. Independent commissioners are measured by using the proportion of the number of independent commissioners to the total board of commissioners [21], the audit committee is measured by the number of members of the audit committee [22], institutional ownership is the ratio between the number of shares owned by institutional investors and the total shares of the company [9], and managerial ownership is the ratio between the number of shares owned by the manager and the number of shares outstanding [9] (Haji dan Gazali, 2013).…”

Pengaruh Corporate Governance Efficiency Terhadap Pengungkapan Sustainability Report Dan Dampaknya Terhadap Kinerja Keuangan

“…Perusahaan yang memiliki tata kelola yang baik tidak hanya mengutamakan kepentingan pemegang saham tetapi juga pemangku kepentingan, hal ini menyiratkan bahwa pengungkapan tata kelola perusahaan dan laporan keberlanjutan memiliki prinsip yang sama yaitu bertanggung jawab kepada pemangku kepentingan (Lucia & Panggabean, 2018). Perusahaan dengan tata kelola yang baik juga cenderung melaporkan informasi keuangan yang berkualitas lebih tinggi, sehingga mampu memantau manajer dalam perusahaan secara langsung (Widiatmoko, 2020). Penelitian ini menggunakan beberapa indikator input untuk variabel corporate governance efficiency , antara lain : 1.…”

“…Hal ini berkaitan dengan aturan kewenangan pemilik, direktur, manajer, pemegang saham, dll. Tata kelola perusahaan adalah kerangka faktor hukum, kelembagaan dan budaya yang membentuk pola pengaruh pemangku kepentingan dalam pengambilan keputusan manajerial (Widiatmoko et al, 2020). Adanya dewan komisaris sebagai bagian dari penerapan good corporate governance dapat mendorong perusahaan melakukan pengungkapan sustainability report.…”