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)

Yuhasril Yuhasril

doi:10.7176/jesd/10-16-16

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

Highlights

The application of good corporate governance is very much needed to be the key to the company's success in being able to compete in business activities
Country www.iiste.org amounting to IDR 38 billion, which were assessed by the Bank Of indonesia (BI) as a result of not implementing Good Corporate Governance (GCG)
This requires intervention and the role of managers to make every effort to balance the interests of shareholders and stakeholders so as to have a positive impact on the corporate value

Summary

Introduction

The application of good corporate governance is very much needed to be the key to the company's success in being able to compete in business activities. Country www.iiste.org amounting to IDR 38 billion, which were assessed by the Bank Of indonesia (BI) as a result of not implementing GCG. This issue had been handled by the Attorney General's Office. The second case was related to the construction of the BJB Tower in the Jakarta area amounting to IDR 540 billion. For this case, the Indonesia’s Corruption Eradication Comission (KPK) claimed to have handled it. This case had been handled by the Attorney General's Office

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Results

Discussion

Conclusion