Valuation of Corporate Shares, Financial Characteristics, the Impact of Corporate Social Responsibility and Corporate Governance (The Case of Indonesia)
This study aims to prove that if there has been an increase in the value of assets, leverage and corporate social responsibility influence on increasing the value of shares in the Indonesian capital market as a result of the implementation of good corporate governance in Indonesia. This study is a survey of a sample of 19 corporations that have implemented good governance and implement corporate social responsibility. We used fixed effect multivariate regression analysis to examine the dependent variables influences the independent variables. The result of the study show that by implementing good corporate governance can increase the value of corporate assets as well as the impact on the increase in value of the corporate stock market value. This is consistent with Dowling’s research that the implementation of good corporate governance is associated with increased long-term corporate image that will have implications on the value of the corporation. Good governance can explain the relationship between the various parties participating in the corporation that determines the direction of the value of corporate stocks. The model as a whole is significant explaining variation in dependent variable. Which is explaining by R-square 0.68 means that 0.32 explaining by external variables out of the model. Corporate governance influence to corporate size, leverage, agency cost and corporate social responsibility is up to 0.5275 it means moderate strong. Corporate governance influence to corporate stock value is only 0.0084 it means less significant. While corporate size, leverage, agency cost and corporate social responsibility influence to corporate stock value is 0.1477 means less significant.
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Document Type: Research Article
Publication date: April 1, 2015
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