Research Article
Corporate Social Responsibility (CSR), Institutional Ownership, and Firm Value
@INPROCEEDINGS{10.4108/eai.10-8-2022.2320826, author={Ludwina Harahap and Jaka Isgiyarta}, title={Corporate Social Responsibility (CSR), Institutional Ownership, and Firm Value}, proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2022}, month={8}, keywords={corporate social responsibility institutional ownership firm value}, doi={10.4108/eai.10-8-2022.2320826} }- Ludwina Harahap
Jaka Isgiyarta
Year: 2022
Corporate Social Responsibility (CSR), Institutional Ownership, and Firm Value
ICBAE
EAI
DOI: 10.4108/eai.10-8-2022.2320826
Abstract
This empirical study examines the relationship between CSR, corporate governance, and organizational performance or firm value in an emerging country. For this study, the five-year panel data from 2017 to 2020 are obtained through content analysis of annual reports. The study applied fixed effects on a panel data regression model to a panel of Indonesian manufacturing companies in Indonesia. We find that CSR, corporate governance structure by institutional ownership, and size positively link firm value, while profitability can't show a significant relationship. The results of this study provide evidence of Shleifer and Vishny's statements that institutional ownership is a shareholder who is very concerned about social performance, the environment, and governance. This study provides a deeper understanding of the role of institutional ownership in corporate governance and monitoring mechanisms, particularly in emerging economies such as Indonesia. This study also sheds light on the observed association between CSR, governance, and Firm Performance
