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

Abstract

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.