The Influence of the Quantity of Corporate Social Responsibility and National Diversity of the Board of Companies on Corporate Value with the Availability of Sustainability Reports as a Moderating Variable
DOI:
https://doi.org/10.38035/gijea.v1i1.12Keywords:
Corporate Social Responsibility, National Diversity Board, Corporate ValuesAbstract
This study aims to analyze the influence of corporate social responsibility and diversity of corporate board nationalities on firm value. The data used is secondary data sourced from annual reports and Thomson Reuters Data Stream. The data analysis technique used in this test is multiple regression analysis. The results of the regression analysis show that CSR spending, the proportion of foreign commissioners, and the proportion of foreign directors have no effect on firm value. The results of the regression analysis also show that disclosure of sustainability reports has no influence in moderating the relationship between CSR spending and firm value. Meanwhile, disclosure of sustainability reports has a negative moderating effect on the relationship between the proportion of foreign commissioners and company value, and has a positive effect on the relationship between the proportion of foreign directors and company value.
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Saidi, Z., & Abidin, H. (2004). Discourse and Practice of Social Generosity in Indonesia . Piramedia.
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Sudiyatno, B., & Puspitasari, E. (2010). Tobin's Q And Altman Z-Score As Indicators Of Company Performance Measurement . 2 (1), 13.
Suharli, M. (2006). Empirical Study of the Effect of Profitability, Leverage, and Stock Price on the Amount of Cash Dividends (Study of Companies Listed on the Jakarta Stock Exchange Period 2002-2003). MAKSI Journal , 6 (2), 243–256.
Surya, I., & Yustiavandana, I. (2006). Implementation of Good Corporate Governance: Putting aside Privileges for Business Continuity . golden.
Tarmuji, I., Maelah, R., & Tarmuji, NH (2016). The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score. International Journal of Trade, Economics and Finance , 7 (3), 67–74. https://doi.org/10.18178/ijtef.2016.7.3.501
World Business Council for Sustainable Development: 2001, The Business Case for Sustainable Development: Making a Difference Towards the Johannesburg Summit 2002 and Beyond. [Online] available: http:// www.wbcsd.org
Winoto, PJ & Supatmi. (2017). The Effect of Board of Dorector's National Diversity on Company Value. SWCU E-Print Journals .
Yenidogan, A., Gurcaylilar-Yenidogan, T., & Tetik, N. (2021). Environmental management and hotel profitability: Operating performance matters. Tourism & Management Studies , 17 (3), 7–19. https://doi.org/10.18089/tms.2021.170301
Yogiswari, N., & Badera, I. (2019). The Effect of Board Diversity on Corporate Values in the Corporate Governance Perspective. Accounting E-Jurnal , 2070. https://doi.org/10.24843/EJA.2019.v26.i03.p15
Ararat, M., Aksu, M., & Cetin, AT (2010). Impact Of Board Diversity On Boards' Monitoring Intensity And Firm Performance: Evidence From The Istanbul Stock Exchange. Paper Presented At The 17th Annual Conference Of The Multinational Finance Society , 33.
Astuti, EP (2017). The Influence of the Diversity of the Board of Directors on Company Value in Manufacturing Companies Listed on the Indonesia Stock Exchange in the 2008-2011 Period . 4 , 21.
Bose, S., Saha, A., & Abeysekera, I. (2020). The Value Relevance of Corporate Social Responsibility (CSR) Expenditure: Evidence from Regulatory Decisions. Abacus , 56 , 455–494.
Branco, MC, & Rodrigues, LL (2006). Corporate Social Responsibility and Resource-Based Perspectives. Journal of Business Ethics , 69 (2), 111–132. https://doi.org/10.1007/s10551-006-9071-z
Campbell, K., & Mínguez-Vera, A. (2008). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics , 83 (3), 435–451. https://doi.org/10.1007/s10551-007-9630-y
Carroll, AB (2016). Carroll's pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility , 1 (1), 3. https://doi.org/10.1186/s40991-016-0004-6
Endiana, IDM, & Suryandari, NNA (2021). Value Relevance Of Sustainability Report: Evidence From Indonesia. Indonesian Journal of Accounting and Finance , 18 (2), 168–182. https://doi.org/10.21002/jaki.2021.09
Ernst & Young. (2013). Value of Sustainability Reporting. A study by Ernst & Young LLP and the Boston College Center for Corporate Citizenship .
Fahad P. & Showkat Ahmad Busru. (2021). CSR disclosure and firm performance: Evidence from an emerging market. Corporate Governance: The International Journal of Business in Society , 21 (4), 553–568. https://doi.org/10.1108/CG-05-2020-0201
Fama, EF (1978). The Effect of a Firm Investment and Financing Decision on The Welfare of Its Security Holders. American Economic Review , 68 (3), 272–284.
FCGI. (2001a). Corporate Governance: Corporate Governance . FCGI.
FCGI. (2001b). The Role of the Board of Commissioners and the Audit Committee in the Implementation of Corporate Governance (Corporate Governance) . FCGI.
Global Reporting Initiative. (2011). Sustainability Reporting Guidelines Global Reporting Initiative. (2016). Sustainability Reporting Guidelines
Huang, H., Shang, R., Wang, L., & Gong, Y. (2022). Corporate social responsibility and firm values: Evidence from Chinese targeted poverty alleviation. Management Decisions . https://doi.org/10.1108/MD-07-2021-0993
Jaggi, B., & Freedman, M. (1992). An Examination Of The Impact Of Pollution Performance On Economic And Market Performance: Pulp And Paper Firms. Journal of Business Finance & Accounting , 19 (5), 697–713. https://doi.org/10.1111/j.1468-5957.1992.tb00652.x
Jindal, V., & Jaiswall, M. (2015). Board Diversity and Firm performance Influenced by Ownership Concentration: Working Paper Series , 765 , 22.
Kusumastuti, S. (2006). The Effect of Board Diversity on Corporate Values in the Corporate Governance Perspective. Journal of Accounting and Finance , 9 (2), 88–98. https://doi.org/10.9744/jak.9.2.pp.%2088-98
Maji, SG, De, UK, & Gunardi, A. (2020). Simultaneous Association between Quality of Corporate Environmental Performance and Financial Performance: Evidence from Select Asian Countries. Indonesian Journal of Sustainability Accounting and Management , 4 (1), 78–92. https://doi.org/10.28992/ijsam.v4i1.206
Mubarok, A. (2022). Ethical Investment (Concept, Basic Considerations and Approaches). Jesya (Journal of Economics & Sharia Economics) , 5 (1), 766–783. https://doi.org/10.36778/jesya.v5i1.646
Oxelheim, L., & Randøy, T. (2001). The impact of foreign board membership on firm value. Journal of Banking & Finance , 27 (12), 2369–2392. https://doi.org/10.1016/S0378-4266(02)00395-3
Pajaria, Y., Meutia, I., & Widiyanti, M. (2016). The Effect of Diversity of the Board of Directors and Commissioners, Company Size, and Profitability on Corporate Social Responsibility Disclosures of Manufacturing Sector Companies Listed on the Indonesia Stock Exchange . 10 (2), 24.
Puspitaningrum, D., & Trisnawati, R. (2019). The Effect of Corporate Social Responsibility Expenditure, Corporate Social Responsibility Disclosure, and Corporate Governance on Corporate Values. National Seminar and The 6th Call for Sharia Paper . https://publishilmiah.ums.ac.id/xmlui/handle/11617/11406
Putri, WE (2020). The Effect of Board Directors Diversity on Corporate Values in the Corporate Governance Perspective. Journal of Accounting and Finance Research , 8 (2), 307–318. https://doi.org/10.17509/jrak.v8i2.21825 .
Rahayu, M., & Sari, B. (2018). FACTORS AFFECTING COMPANY VALUE . 2 (2), 8.
Randøy, T., Thomsen, S., & Oxelheim, L. (2006). A Nordic Perspective on Corporate Board Diversity. Nordic Innovation Centre .
Roika, R., Salim, U., & Sumiati, S. (2019). The Influence of the Diversity of the Board of Directors on the Company's Financial Performance. IQTISHODUNA , 15 (2). https://ejournal.uin-malang.ac.id/index.php/economy/article/view/7033/pdf
Ross, SA (1977). The Determination of Financial Structure: The Incentive- Signaling Approach. The Bell Journal of Economics , 8 (1), 23. https://doi.org/10.2307/3003485
Saidi, Z., & Abidin, H. (2004). Discourse and Practice of Social Generosity in Indonesia . Piramedia.
Soenarso, SA (2022, March 18). IDX: ESG Themed Investments Will Continue to Increase [Online News]. https://investasi.kontan.co.id/news/bei-investasi-bertema-esg-bakal-terus-meningkat
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics , 87 (3), 355. https://doi.org/10.2307/1882010
Sudiyatno, B., & Puspitasari, E. (2010). Tobin's Q And Altman Z-Score As Indicators Of Company Performance Measurement . 2 (1), 13.
Suharli, M. (2006). Empirical Study of the Effect of Profitability, Leverage, and Stock Price on the Amount of Cash Dividends (Study of Companies Listed on the Jakarta Stock Exchange Period 2002-2003). MAKSI Journal , 6 (2), 243–256.
Surya, I., & Yustiavandana, I. (2006). Implementation of Good Corporate Governance: Putting aside Privileges for Business Continuity . golden.
Tarmuji, I., Maelah, R., & Tarmuji, NH (2016). The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score. International Journal of Trade, Economics and Finance , 7 (3), 67–74. https://doi.org/10.18178/ijtef.2016.7.3.501
World Business Council for Sustainable Development: 2001, The Business Case for Sustainable Development: Making a Difference Towards the Johannesburg Summit 2002 and Beyond. [Online] available: http:// www.wbcsd.org
Winoto, PJ & Supatmi. (2017). The Effect of Board of Dorector's National Diversity on Company Value. SWCU E-Print Journals .
Yenidogan, A., Gurcaylilar-Yenidogan, T., & Tetik, N. (2021). Environmental management and hotel profitability: Operating performance matters. Tourism & Management Studies , 17 (3), 7–19. https://doi.org/10.18089/tms.2021.170301
Yogiswari, N., & Badera, I. (2019). The Effect of Board Diversity on Corporate Values in the Corporate Governance Perspective. Accounting E-Jurnal , 2070. https://doi.org/10.24843/EJA.2019.v26.i03.p15
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Published
2023-03-01
How to Cite
Seth, S. . (2023). The Influence of the Quantity of Corporate Social Responsibility and National Diversity of the Board of Companies on Corporate Value with the Availability of Sustainability Reports as a Moderating Variable. Greenation International Journal of Economics and Accounting, 1(1), 14–27. https://doi.org/10.38035/gijea.v1i1.12
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