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Firm Value Improvement Strategy, Corporate Social Responsibility, and Institutional Ownership

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Listed:
  • M. Chabachib
  • Tyana Ulfa Fitriana
  • Hersugondo Hersugondo
  • Imang Dapit Pamungkas
  • Udin Udin

Abstract

The study is intended to appraise return on assets (ROA), debt/equity ratio (DER), and firm size (SIZE) on price-to-book-value (PBV) with corporate social responsibility as an intervening variable and institutional proprietorship as a moderating variable. By using purposive sampling, 267 manufacturing companies are determined from the Indonesia Stock Exchange in the period of 2013-2017. Data are analyzed using multiple and bivariate regression analysis. The results show that ROA and firm size have a positive effect on corporate society awareness, while DER has no significant effect respectively. Profit gain, firm scope, and corporate social responsibility have a positive effect on firm utility. It came into a conclusion that corporate social awareness can be used to mediate the influence on leverage and firm scope toward the firm value, but cannot be used to mediate the effect of profit gain on firm utility.

Suggested Citation

  • M. Chabachib & Tyana Ulfa Fitriana & Hersugondo Hersugondo & Imang Dapit Pamungkas & Udin Udin, 2019. "Firm Value Improvement Strategy, Corporate Social Responsibility, and Institutional Ownership," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 152-163, July.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:4:p:152-163
    DOI: 10.5430/ijfr.v10n4p152
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    References listed on IDEAS

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    Cited by:

    1. Mochammad Chabachib & Ike Setyaningrum & Hersugondo Hersugondo & Intan Shaferi & Imang Dapit Pamungkas, 2020. "Does Financial Performance Matter? Evidence on the Impact of Liquidity and Firm Size on Stock Return in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 546-555, July.
    2. Bestari Dwi Handayani & Abdul Rohman & Anis Chariri & Imang Dapit Pamungkas, 2020. "Corporate Financial Performance on Corporate Governance Mechanism and Corporate Value - Evidence from Indonesia," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 161-171.
    3. Erik Syawal Alghifari & Ardi Gunardi & Jaja Suteja & Indah Khoerun Nisa & Zalfa Amarananda, 2022. "Investment Decisions of Energy Sector Companies on the Indonesia Stock Exchange: Theory and Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 73-79, November.
    4. Maylia Pramono Sari & Nindya Pramasheilla & Fachrurrozie & Trisni Suryarini & Imang Dapit Pamungkas, 2020. "Analysis of Fraudulent Financial Reporting With the Role of KAP Big Four as a Moderation Variable: Crowe's Fraud's Pentagon Theory," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 180-190, October.
    5. Pancawati Hardiningsih & Indira Januarti & Etna Nur Afri Yuyetta & Ceacilia Srimindarti & Udin Udin, 2020. "The Effect of Sustainability Information Disclosure on Financial and Market Performance: Empirical Evidence from Indonesia and Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 18-25.

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