Analysis of Impact Implementation of Corporate Governance and Corporate Social Responsibility on Corporate Value in Banking Sector with Net Profit Margin and Management Quality as Moderating Variables

Andre Prasetya Willim, Andreas Lako, Wendy Wendy


This study aims to determine the impact of the disclosure of the implementation of corporate governance and corporate social responsibility to the value of the company with net profit and management quality variables as moderating variables in the banking sector on the Indonesia Stock Exchange. The value of the company in this study using Tobin's Q. Samples in this study amounted to 29 companies in the banking sector on the Indonesia Stock Exchange using annual financial reports and annual reports from 2009 to 2018. Based on the samples in this study, data processing is done by analysis Multiple regression to measure the impact of independent variables consisting of disclosure of the implementation of corporate governance and corporate social responsibility on the dependent variable, Tobin's Q, with moderating variables, namely net income and management quality. The results of the study note that the impact of corporate governance disclosure has a positive and significant effect on company value, while the disclosure of corporate social responsibility implementation has no significant effect on firm value. However, the existence of moderating variables net income and management quality can strengthen the effect of corporate social responsibility disclosure on firm value. In disclosing the implementation of Corporate Governance, the moderating variable of net income experiences the opposite, namely, net income weakens the influence of corporate governance on firm value, whereas management quality as measured by Return on Assets cannot moderate the effect of Corporate Governance on firm value.    


Corporate Governance Indeks; Corporate Social Responsibility Indeks; Net Profit Margin; Return on Assets

Full Text:



Balabanis, G., Phillips, H. C., & Lyall, J. (1998). Corporate social Responsibility and Economic Performance in The Top British Compnies: are they linked? European Business Review , 25-44.

Berle Jr., A. A., & Means, G. C. (1932). The Modern Corporation and Private Property. Indiana Law Journal .

Brigham, E. F., & Erdhardt, M. C. (2005). Financial Management Theory and Practice 11th Edition. Ohio: South Western Cengage Learning.

Brigham, E. F., & Houston, J. F. (2010). Fundamental Financial Management (Dasar-dasar Manajemen Keuangan) Edisi 11. Jakarta: Erlangga.

Ducassy, I., & Jennicot, K. (2008). Responsabilité Sociale et Performance Financière: Une Étude . Working Paper, Cahier de Recherche No. 3, Euromed .

Fama, E. F., & Jensen, M. C. (1983). Angency Problems and Residual Claims. Journal of Law and Economics , 327-349.

Finch, N. (2005). The Motivations for Adopting Sustainability Disclosure. MGSM Working paper in Management-Australia Macquire University .

Fiori, G., Donato, F. D., & Izzo, M. F. (2007). Corporate Social Responsibility and Firms Performance: An Analysis on Italian Listed Company. SSRN , 1-14.

Gibson, C. H. (2001). Financial Reporting Analysis 8th Edition. California: South Western College.

Gitman, L. J. (2006). Principles of Managerial Finance 11th Edition. Boston: Addsion Wesley.

Guthrie, J., & Parker, L. (1990). Corporate Social Disclosure Practice : A Comparative International Analysis. In: Advances in Public Interest Accounting , 159-175.

Heal, G., & Garret, P. (2004). Corporate Social Responsibility. Columbia: Columbia Business School.

Husnan, S. (2000). Manajemen Keuangan dan Penerapan (Keputusan Jangka Panjang). Yogyakarta: BPFE.

Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure . Journal of Financial Economics , 305-360.

Kaen, F. R. (2003). A Blueprint For Corporate Governance: Strategy, Accountability and The Preservation of Shareholder Value. USA: AMACOM.

Mc. Gee, R. W. (2009). Corporate Governance in Developing Economies: Country Studies of Africa, Asia and Latin America. New York: Springer.

Paul, C. J., & Siegel, D. S. (2006). Corporate Social Responsibility and Economic Performance. Journal of Producitivity Analysis , 207-211.

Romano, R. (2001). Less is More: Making Institutional InvestorActivism a Valuable Mechanism Corporate Governance. Yale Journal of Regulation , 174-251.

Sartono, A. (2008). Manajemen Keuangan Teori dan Aplikasi. Yogyakarta, : BPFE.

Sembiring, E. R. (2006). Karakteristik Perusahaan dan Pengungkapan Tanggungjawab Sosial: Study Empiris Pada Perusahaan Yang Tercatat di Bursa Efek Jakarta. Jurnal Maksi , 69-85.

Shaw, J. C. (2003). Corporate Governance and Risk: A System Approach. New Jersey: John Wiley and Sons, Inc.

Steyn, B., & Stainbank, L. (2013). Separation of Ownership and Control in South Africa-Listed Companies. South Africa Journal of Economic and Management Sciences , 316-328.

Solomon, J. F., & Solomon, A. (2006). Private social, ethical and environmental disclosure. Accounting, Auditing & Accountability Journal.

Sujoko, & Soebiantoro, U. (2007). Pengaruh Struktur Kepemilikan Saham, Leverage, Faktor Intern dan Faktor Ekstern Terhadap Nilai Perusahaan. Jurnal Manajemen dan Kewirausahaan , 41-48.

Tandelilin, E. (2001). Analisis Investasi dan Manajemen Portofolio Edisi 1. Yogyakarta: BPFE.

Weston, J. F., & Copeland, T. E. (1998). Managerial Finance . New York: CBS College Publishing.

Wu, X., Zhao, R., & Tang, W. (2014). Optimal Contracts for The Agency Problem With Multiple Uncertain Information. Knowledge-Based Systems , 161-172.

Zu, L. R., Gupta, A. D., & Capaldi, N. (2013). Encyclopedia of Corporate Social Responsibility. New York: Springer Heidelberg.



  • There are currently no refbacks.

Copyright (c) 2020 International Journal of Multicultural and Multireligious Understanding

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

International Journal of Multicultural and Multireligious Understanding (IJMMU) ISSN 2364-5369
Copyright © 2014-2018 IJMMU. All rights reserved.