IDEAS home Printed from https://ideas.repec.org/p/osf/inarxi/wn9uz_v1.html
   My bibliography  Save this paper

Effect of corporate social responsibility, good corporate governance and ownership structure on financial performance and firm value: A Study in Jakarta Islamic Index

Author

Listed:
  • Jallo, Amiruddin
  • Mus, Abdul Rahman
  • , Mursalim
  • , Suryanti

Abstract

This study explores several of the problems that are the objectives of this study: (1) Effect of corporate social responsibility, good corporate governance and ownership structure of financial performance. (2) Effect of corporate social responsibility, good corporate governance, ownership structure and financial performance of the value of the company. (3) Effect of corporate social responsibility, good corporate governance and ownership structure on corporate value through financial performance. The research population this is a 30 companies listed on Jakarta Islamic Index (JII) period in 2013 to 2015. There are 28 companies as a research sample. Sampling technique used is purposive sampling. The analysis technique used is partial least squares (PLS) with the help of SmartPLS version 3.0 analysis program. The results show that: (1) corporate social responsibility, good corporate governance and ownership structure has a positive and significant effect on financial performance. (2) Corporate social responsibility and ownership structure has a positive and insignificant effect on firm value. (3) Good corporate governance has a positive and significant effect on firm value. (4) Corporate social responsibility and ownership structure have a positive and insignificant effect on firm value as a mediated financial performance. (5) Good corporate governance has a positive and significant effect on firm value as a mediated financial performance.

Suggested Citation

  • Jallo, Amiruddin & Mus, Abdul Rahman & , Mursalim & , Suryanti, 2017. "Effect of corporate social responsibility, good corporate governance and ownership structure on financial performance and firm value: A Study in Jakarta Islamic Index," INA-Rxiv wn9uz_v1, Center for Open Science.
    • Handle: RePEc:osf:inarxi:wn9uz_v1
    DOI: 10.31219/osf.io/wn9uz_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/5a1e340e6c613b0270da1189/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/wn9uz_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bauer, Rob & Frijns, Bart & Otten, Rogér & Tourani-Rad, Alireza, 2008. "The impact of corporate governance on corporate performance: Evidence from Japan," Pacific-Basin Finance Journal, Elsevier, vol. 16(3), pages 236-251, June.
    2. Klapper, Leora F. & Love, Inessa, 2004. "Corporate governance, investor protection, and performance in emerging markets," Journal of Corporate Finance, Elsevier, vol. 10(5), pages 703-728, November.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Brown, Lawrence D. & Caylor, Marcus L., 2006. "Corporate governance and firm valuation," Journal of Accounting and Public Policy, Elsevier, vol. 25(4), pages 409-434.
    Full references (including those not matched with items on IDEAS)

    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. Michail Nerantzidis, 2018. "The role of weighting in corporate governance ratings," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 589-628, September.
    2. Jallo, Amiruddin & Mus, Abdul Rahman & , Mursalim & , Suryanti & Jamali, Hisnol, 2017. "Effect of corporate social responsibility, good corporate governance and ownership structure on financial performance and firm value: A Study in Jakarta Islamic Index," INA-Rxiv wn9uz, Center for Open Science.
    3. Roy Kouwenberg & Roelof Salomons & Pipat Thontirawong, 2014. "Corporate governance and stock returns in Asia," Quantitative Finance, Taylor & Francis Journals, vol. 14(6), pages 965-976, June.
    4. Anderson, Anne & Gupta, Parveen P., 2009. "A cross-country comparison of corporate governance and firm performance: Do financial structure and the legal system matter?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 5(2), pages 61-79.
    5. Lee, Shih-Cheng & Lin, Chien-Ting, 2010. "An accounting-based valuation approach to valuing corporate governance in Taiwan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 6(2), pages 47-60.
    6. Leo Vashkor Dewri, 2022. "A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2718-2759, December.
    7. Omar Farooque & Wonlop Buachoom & Nam Hoang, 2019. "Interactive effects of executive compensation, firm performance and corporate governance: Evidence from an Asian market," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1111-1164, December.
    8. Almaskati, Nawaf & Bird, Ron & Lu, Yue, 2020. "Corporate governance, institutions, markets, and social factors," Research in International Business and Finance, Elsevier, vol. 51(C).
    9. Lee, Shih-Cheng & Lin, Chien-Ting & Chang, Pei-Ting, 2011. "An Ohlson valuation framework for valuing corporate governance: The case of Taiwan," Pacific-Basin Finance Journal, Elsevier, vol. 19(4), pages 420-434, September.
    10. Jacqueline Christensen & Pamela Kent & Jenny Stewart, 2010. "Corporate Governance and Company Performance in Australia," Australian Accounting Review, CPA Australia, vol. 20(4), pages 372-386, December.
    11. Dan Yang & Linyin Cheng & Guojun Wang & Yuetang Wang & Lu Zhang, 2020. "Investor protection and cost of debt: Evidence from dividend commitment in firm bylaws," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(5), pages 294-308, September.
    12. Hari Venkatesh & Jyoti Kumari & Gourishankar S. Hiremath & Hiranmoy Roy, 2021. "Foreign Institutional Investors: Fair-Weather Friends or Smart Traders?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 291-316, June.
    13. Caixe, Daniel Ferreira, 2022. "Corporate governance and investment sensitivity to policy uncertainty in Brazil," Emerging Markets Review, Elsevier, vol. 51(PB).
    14. Abdallah, Abed Al-Nasser & Ismail, Ahmad K., 2017. "Corporate governance practices, ownership structure, and corporate performance in the GCC countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 98-115.
    15. Andreas Charitou & Irene Karamanou & Anastasia Kopita, 2018. "The determinants and valuation effects of classification choice on the statement of cash flows," Accounting and Business Research, Taylor & Francis Journals, vol. 48(6), pages 613-650, September.
    16. Conheady, Brian & McIlkenny, Philip & Opong, Kwaku K. & Pignatel, Isabelle, 2015. "Board effectiveness and firm performance of Canadian listed firms," The British Accounting Review, Elsevier, vol. 47(3), pages 290-303.
    17. Chalevas, Constantinos G., 2011. "The Effect of the Mandatory Adoption of Corporate Governance Mechanisms on Executive Compensation," The International Journal of Accounting, Elsevier, vol. 46(2), pages 138-174, June.
    18. Puneeta Goel, 2018. "Implications of corporate governance on financial performance: an analytical review of governance and social reporting reforms in India," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 3(1), pages 1-21, December.
    19. Hussain, Tanveer & Loureiro, Gilberto, 2022. "Portability of firm corporate governance in mergers and acquisitions," Research in International Business and Finance, Elsevier, vol. 63(C).
    20. Nobert Osemeke & Louis Osemeke, 2017. "The effect of culture on corporate governance practices in Nigeria," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(4), pages 318-340, November.

    More about this item

    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:osf:inarxi:wn9uz_v1. 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: OSF (email available below). General contact details of provider: https://ios.io/preprints/inarxiv/discover .

    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.