The Importance of Corporate Social Responsibility in Improving Corporate Value: Case Study of Public Companies in Indonesia

Supriyati and Gunasti Hudiwinarsih
Additional contact information
Supriyati: Department of Accounting, STIE Perbanas University, Surabaya, Indonesia
Gunasti Hudiwinarsih: Department of Accounting, STIE Perbanas University, Surabaya, Indonesia

International Journal of Finance & Banking Studies, 2020, vol. 9, issue 3, 121-130

Abstract: Corporate value is a quality measure that indicates the consistency and sustainability of a company. Good corporate value can only be attained if the company has consistent financial performance, and that value will be used by decision makers inside or outside the company as the guide before making action. Attaining good corporate value should need comprehensive strategies integrated with company operation. Among those strategies is non-financial activity or social responsibility. This research expects that the disclosure of social responsibility by the company will adorn corporate image and give good impact on profitability (with ROA and ROE as proxies) and corporate value (with PBV and TBQ as proxies). This research is aimed to examine the effectof social responsibility disclosure on profitability and corporate value. Data testing was conducted using robust regression test and applied on 1306 data of public companies that are listed at Indonesia Stock Exchange on period 2015-2018. It has been robustly with MM Model and result of the test shows that social responsibility affects profitability and corporate value.

Keywords: Social Responsibility Disclosure; Profitability; Corporate Value; Bank (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/868/631 (application/pdf)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/868 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbs:ijfbss:v:9:y:2020:i:3:p:121-130

Access Statistics for this article

International Journal of Finance & Banking Studies is currently edited by Prof.Dr.Hasan Dincer

More articles in International Journal of Finance & Banking Studies from Center for the Strategic Studies in Business and Finance IJFBS Editorial Office, IMU, School of Business. Contact information at EDIRC.
Bibliographic data for series maintained by Hasan Dincer ().