The Influence of Corporate Social Responsibility and Ownership Structure on Firm Value with Financial Performance as an Intervening Variable
Didik Indarwanta1*, Asih Marini Wulandari2, Agung Prabowo3, Muhammad Irfan Muafi4, Satrio Tegar Gunung Koraag5

UPN Veteran Yogyakarta

Abstract

This study aims to determine the influence of Corporate Social Responsibility and Ownership Structure on Firm Value, mediated by Financial Performance. The sample used in this study is manufacturing companies that are publicly listed on the Indonesia Stock Exchange for the period of 2018 - 2022. The type of research used is explanatory research. Data analysis using financial ratio analysis, descriptive analysis, and inferential analysis. The inferential statistical analysis used is Warp Partial Least Square. (WarpPLS).
The research results indicate that Corporate Social Responsibility has a significant impact on Firm Value but does not have a significant effect on Financial Performance. These findings empirically support the legitimacy theory and signaling theory regarding the importance of disclosing Corporate Social Responsibility. The more companies engage in CSR, the higher their image or value will be in the long term. The ownership structure has a significant impact on financial performance and firm value. Financial performance significantly influences firm value. These findings empirically prove that ownership structure is one of the tools for controlling and overseeing managers.

Keywords: Corporate Social Responsibility, Ownership Structure, Firm Value, Financial Performance

Topic: Social Science