Abstract
The company goal is to maximize the shareholders’ prosperity, not just to maximize profit. The fact is that the company not only has economic responsibility but also social responsibility to the community and its environment. The purpose of this study was to analyze the effect of good corporate governance (GCG) and corporate social responsibility (CSR) on the firm value. The research sample of 15 companies was taken using purposive sampling from companies listed in the LQ-45 on the Indonesia Stock Exchange for the period of 2014-2017. This study uses panel data regression analysis with Random Effect model method. GCG is a representation of managerial ownership, institutional ownership, independent commissioner, and audit committee. The results of this study indicate that there is a significant influence between GCG and CSR on firm value simultaneously. Partially, independent Commissioners and CSR each have an influence on the firm value, but there is an anomaly.
Highlights
The company is established with a clear goal, which is to maximize the value of the company
The purpose of this study was to analyze the influence of good corporate governance and corporate social responsibility on the firm value that included in the LQ-45 on the Indonesia Stock Exchange in the period of 2014-2017
While the independent variable used in this study is good corporate governance (GCG) which is represented by four variables, namely managerial ownership / MO (X1), institutional ownership / IO (X2), independent commissioner /
Summary
The company is established with a clear goal, which is to maximize the value of the company. To realize the company's goals requires a new awareness, that the company has economic responsibility (especially to shareholders) and has social responsibility to the community and its environment. In the process of maximizing the value of the company there will be differences in interests between shareholders and managers These differences have led rise a theory known as the agency conflict (Panda and Leepsa, 2017). Supervision can be carried out by the audit committee to ensure transparency and accountability of Based on this background, the purpose of this study was to analyze the influence of good corporate governance and corporate social responsibility on the firm value that included in the LQ-45 on the Indonesia Stock Exchange in the period of 2014-2017
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