International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (1353-1358), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Effects of Corporate Social Responsibility Disclosure, Profitability, Institutional Ownership and Leverage on Firm Value Renika Manalu1, Ni Gusti Putu Wirawati2, Ida Bagus Putra Astika3, I. D. G Dharma Suputra4 1,2,3,4 1,2,3,4
Udayana University
Faculty of Economics and Business, Bali, Indonesia
Abstract: The company always strives to maintain its business excellence in increasing the value of the company. The purpose of this study is to obtain empirical evidence about The Effects Corporate Social Responsibility Disclosure, Profitability, Institutional Ownership, and Leverage on Corporate Value. This research was conducted at the Indonesia Stock Exchange in manufacturing companies in various industrial sectors in the period of 20162018. This research was conducted by downloading data through the official website of the IDX, namely www.idx.co.id. The type of data used in this study is quantitative data. The sample selection method in this study uses a nonprobability sampling method with a purposive sampling technique. The sample in this study were 14 companies with a total of 38 observations. Data collection is carried out through literature study and documentation. Based on the analysis with multiple linear regression techniques, the results of the analysis are obtained that profitability, institutional ownership and leverage affect the value of the company while corporate social responsibility disclosure does not affect the value of the company. Keywords: Corporate Social Responsibility Disclosure, Profitability, Institutional Ownership, Leverage, Firm Value.
I. INTRODUCTION Economic activity in a company is the ultimate goal of achieving an economic activity carried out by economic agents. When viewed from the perspective of economic principles, companies as entities have short-term goals and long-term goals. In the short term the company aims to obtain maximum profit by using existing resources, while in the long run the main objective of the company is to maximize economic activity to increase the value of the company. The company in its development will always try to maintain its business excellence in increasing the value of the company. Companies that have high company value will foster a sense of trust from the parties associated with the company and from the wider community. The company can attract investors to invest their capital if the company has good corporate value. There are several factors that affect company value, namely Corporate Social Responsibility Disclosure (CSRD), Profitability, Institutional Ownership, and Leverage. CSR is a form of company understanding of the importance of corporate responsibility in minimizing the negative effects arising from all policies and operational activities of the company. The concept of CSR is used as an important indicator to assess the company's ability to maintain the existence and sustainable business growth. The more forms of accountability that companies take on their environment, the company's image will increase. Investors are more interested in companies that have a good image and the profitability of the company will also increase. If the company runs smoothly, the value of the company's shares will increase both in the community because of the better image of the company, the higher customer loyalty so that in the long run the company's sales will improve (Retno and Priantinah, 2012).
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