Influence of Good Corporate Governance and Corporate Social Responbility To Company Value with Profitability as a Moderation Variable (Studies on Manufacturing Companies Listed on the Stock Exchange Indonesia Year 2017-2021)

Abstract

Purpose: The study added profitability as a moderating variable, predicting that the higher the profitability a firm has achieved, the more valuable it will be. Companies that can survive over the long term are reflected in further improvements in corporate value. Theoretical framework: Agency theory focuses on two individuals, namely the principal and the agent. The principal delegates responsibility for decision making to agents. Both principals and agents are assumed to be rational economic people who are solely motivated by self-interest, but they have difficulty differentiating respect for preferences, beliefs and information. Material and Method: This study uses a kind of quantitative research. The audit committee, board size, excellent corporate governance, and corporate social responsibility are the study's independent variables. Tobin's Q-ratio is the dependent variable in this investigation. The moderator variable for this study is profitability. The study uses secondary data, i.e. data from financial reports. The survey was conducted on all manufacturing companies listed on the Indonesian Stock Exchange. A quantitative approach was used using mathematical models for collection and analysis using statistical formulas. The sampling technique of the data collection method used in this study is literature review. internet media. The study population is manufacturing companies listed on the Indonesian Stock Exchange (IDX) between 2017 and 2021. The sample size for this study is 40 companies he listed on IDX between 2017 and 2021. The results show that the size of a company's board of directors has a significant impact on corporate value in the IDX-listed manufacturing industries from 2017 to 2021. Findings: The results show that audit committees will not have a significant impact on the enterprise values of manufacturers listed on the IDX from 2017 to 2021. Findings show that corporate social responsibility (CSR) does not have a significant impact on corporate value for manufacturers listed in the IDX 2017-2021. Research practical & Social Implication: Based on the research, the results of this study also show that the size of a company's board of directors helps increase shareholder value. Originality/value: This is evidenced by her MRA test results in the previous chapter, where profitability amplifies the effect of a company's board size on its value. After all, the more profitable a company is, the more the board will be happy to work and the more valuable the company will be.