The Influence of Good Corporate Governance and Corporate Social Responsibility towards the Financial Performance that has Implications for Firm Value of Banking Companies Listed in Indonesia Stock Exchange

Abstract

The purpose of this research is to examine the Good Corporate Governance and Corporate Social Responsibility both simultaneously and partially to Financial Performance and their Implications for Firm Value on Indonesian Banks in the period of 2011-2015. The type used in this research is causality, using purposive sampling method and unbalanced panel data. The object of this research consists of 11 banks with 38 observational data. The method of analysis used in this research is path analysis. The results show that (1) Good Corporate Governance and Corporate Social Responsibility simultaneously influence towards the financial performance; (2) Good Corporate Governance has influence toward the financial performance; (3) Corporate Social Responsibility has influence toward the financial performance; (4) Good Corporate Governance, Corporate Social Responsibility, and financial performance simultaneously influence towards firm value; (5) Good Corporate Governance has no influence toward firm value; (6) Corporate Social Responsibility has no influence toward firm value; (7) The financial performance has influence toward firm value; (8) The financial performance fully mediated the influence of Good Corporate Governance toward firm value; and (9) The financial performance fully mediated the influence of Corporate Social Responsibility toward firm value.