IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiy2019i2p231-238.html
   My bibliography  Save this article

The Importance of Corporate Social Responsibility and Financial Performance for the Value of Banking Companies in Indonesia

Author

Listed:
  • Dwi Ermayanti Susilo
  • Grahita Chandrarin
  • Boge Triatmanto

Abstract

Purpose: This study aims to determine the influence of the importance of corporate social responsibility and financial performance to the value of banking companies in Indonesia. Design/Methodology/Approach: This research was conducted on 30 companies engaged in Banking in Indonesia listing on JSE 2010-2016. Findings: The results show that corporate social responsibility and financial performance have influenced the value firm of banking companies in Indonesia. Practical Implications: Indonesian banks must strengthen their capital structure and improve efficiency in order to compete with foreign banks. The company's goal is to increase the company's value or the growth of the company. Originality/Value: The results highlighted that the higher the value of corporate social responsibility issued by the company the better the performance of the company, the better the value of firm generated by Indonesian Banking companies.

Suggested Citation

  • Dwi Ermayanti Susilo & Grahita Chandrarin & Boge Triatmanto, 2019. "The Importance of Corporate Social Responsibility and Financial Performance for the Value of Banking Companies in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 231-238.
  • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:2:p:231-238
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/239/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. V.M. Morais Pereira & J.A. Candeias Bonito Filipe, 2018. "Quality of Board Members’ Training and Bank Financial Performance: Evidence from Portugal," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 47-79.
    2. Fama, Eugene F, 1978. "The Effects of a Firm's Investment and Financing Decisions on the Welfare of Its Security Holders," American Economic Review, American Economic Association, vol. 68(3), pages 272-284, June.
    3. repec:ers:journl:v:vi:y:2018:i:3:p:47-79 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khaled Khalaf Alafi, 2023. "The Impact of ESG on Strategic Success in Jordanian Islamic Banks," International Review of Management and Marketing, Econjournals, vol. 13(1), pages 1-10, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charles A.E. Goodhart & Dimitrios P. Tsomocos & Xuan Wang, 2023. "Support for small businesses amid COVID‐19," Economica, London School of Economics and Political Science, vol. 90(358), pages 612-652, April.
    2. Georg Wamser, 2014. "The Impact of Thin-Capitalization Rules on External Debt Usage – A Propensity Score Matching Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(5), pages 764-781, October.
    3. Alfonso Herrero de Egaña & Carmen Soria Bravo & Alberto Muñoz Cabanes, 2016. "On the Separability of Real and Financial Decisions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(2), pages 211-224, May.
    4. Krishna Dayal Pandey & Tarak Nath Sahu, 2019. "Debt Financing, Agency Cost and Firm Performance: Evidence from India," Vision, , vol. 23(3), pages 267-274, September.
    5. Herbst, P. & Prüfer, J., 2007. "Firms, Nonprofits, and Cooperatives : A Theory of Organizational Choice," Other publications TiSEM cc96ab25-4a8b-4caa-9ea2-7, Tilburg University, School of Economics and Management.
    6. Niar, Hikma & Jamali, Hisnol, 2018. "Determinants Of Profitability And Firm Values In The Manufacturing Sector Of Firms In Indonesia," OSF Preprints 9azju, Center for Open Science.
    7. Thierry Poulain-Rehm & Xavier Lepers, 2013. "Does Employee Ownership Benefit Value Creation? The Case of France (2001–2005)," Journal of Business Ethics, Springer, vol. 112(2), pages 325-340, January.
    8. DeAngelo, Harry, 2021. "Corporate financial policy: What really matters?," Journal of Corporate Finance, Elsevier, vol. 68(C).
    9. Gérard Charreaux, 2000. "L'approche économico-financière de l'investissement: une vision critique," Working Papers CREGO 1000501, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
    10. Òscar Jordà & Martin Kornejew & Moritz Schularick & Alan M Taylor, 2022. "Zombies at Large? Corporate Debt Overhang and the Macroeconomy," The Review of Financial Studies, Society for Financial Studies, vol. 35(10), pages 4561-4586.
    11. Garcia-Appendini, Emilia & Gatti, Stefano & Nocera, Giacomo, 2023. "Does asset encumbrance affect bank risk? Evidence from covered bonds," Journal of Banking & Finance, Elsevier, vol. 146(C).
    12. Chris O. Udoka & Bassey I. Ibor, 2014. "An Assessment of Theories Underlying the Operations of the Nigerian Stock Market," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 77-86, July.
    13. Indra Abeysekera & Kim Tien Tran, 2021. "The Coronavirus as a Disrupter of a Sustainable Small Early Childhood Family Business in Vietnam," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    14. Innes, Robert, 1987. "Agency Costs, Farm Debt And Foreclosure: Positive And Policy Issues," Working Papers 225811, University of California, Davis, Department of Agricultural and Resource Economics.
    15. Stewart C. Myers, 2001. "Capital Structure," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 81-102, Spring.
    16. Maryam Mangantar & Muhammad Ali, 2015. "An Analysis of the Influence of Ownership Structure, Investment, Liquidity and Risk to Firm Value: Evidence from Indonesia," American Journal of Economics and Business Administration, Science Publications, vol. 7(4), pages 166-176, November.
    17. Herbst, P. & Prüfer, J., 2007. "Firms, Nonprofits, and Cooperatives : A Theory of Organizational Choice," Other publications TiSEM 6dc12dfd-71a3-45e5-af61-f, Tilburg University, School of Economics and Management.
    18. Catur F. Ukhriyawati & Tri Ratnawati & Slamet Riyadi, 2017. "The Influence of Asset Structure, Capital Structure, Risk Management and Good Corporate Governance on Financial Performance and Value of The Firm through Earnings and Free Cash Flow As An Intervening ," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(8), pages 249-249, July.
    19. Miguel Mello Costa, 2018. "An Empirical Analysis of the Maturity of Debt Supply in Uruguay," Documentos de trabajo 2018005, Banco Central del Uruguay.
    20. Merton, Robert, 1990. "Capital market theory and the pricing of financial securities," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 1, chapter 11, pages 497-581, Elsevier.

    More about this item

    Keywords

    Corporate social responsibility; financial performance; corporate value.;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:vii:y:2019:i:2:p:231-238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.