MEDIATION OF CSR AND PROFITABILITY ON THE INFLUENCES OF GCG MECHANISMS TO THE FIRM VALUE
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 2
Abstract
The purpose of this research was to determine the causal relationship among GCG mechanism, financial performance, CSR and firm’s value. The model of the research was constructed by using financial performance and CSR as intervening variables on the effect ofGCG mechanism to firm’s value. This research was accomplished on companies listed in Jakarta Islamic Index (JII) in Indonesia Stock Exchange for the period of 2007-2013. The result showed that GCG mechanism tended to reject every CSR financing. CSR was positively affected by Return on Investment (ROI). GCG mechanism represented by institutional ownership (INWN) had a positive effect on ROI. ROI had a positive effect to return on equity (ROE), and ROE had a positive effect on the firm’s value. This study proved that ROI was mediating significantly the effect of INWN to CSR, and ROE was mediating significantly the effect of ROI to firm’s value.
Authors and Affiliations
Muhamad Umar Mai
Keywords
Related Articles
- EP ID EP439742
- DOI -
- Views 129
- Downloads 0
A note on Bitcoin’s price volatility
Cryptocurrencies such as bitcoin are sometimes referred to as the new gold and the buzz that surrounded bitcoins in the last few years is akin to the old day’s gold rush. Cryptocurrencies are not directly linked to any m...
Macroeconomic variables towards net asset value of sharia mutual funds in Indonesia and Malaysia
Sharia mutual fund as one of the investment instruments in the sharia capital market shows significant development. There are various factors that may influence, among these factors are macroeconomic variables. This rese...
The Role of Corporate Governance as a Leverage Moderating and Free Cash Flow on Earnings Management
According to agency theory, there was a separation of function between principal and agent. This separation created different interest between principal and agent. This condition occurs because of the asymmetric informat...
Analysis of Indonesia Business Cycle through Composite Leading Indicator Data Processing for Banking Industry
This study aimed to analyze business cycle of Indonesia through data processing CLI (Composite Leading Indicator) and to obtain an investment leading indicator which a composite of several indicators. This study used OEC...
Theory of planned behavior and whistleblowing intention
This research examined the theory of planned behavior (TPB) as predictor whistleblowing intention. According to TPB, it is difficult to posit whistleblowing as actual behavior. Whistleblowing is more suited to be posited...