The Impact of Good Corporate Governance and Corporate Social Responsibility on Corporate Value: The Moderating Role of Financial Performance

Abstract

Companies need to continuously adapt to market developments and external demands to remain competitive in today's fast-changing business world. One of the primary objectives of running a business is to maximize its value. Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) are essential factors that can influence the value of a company. This study systematically reviewed literature on the relationships between GCG, CSR, financial performance, and corporate value using a rigorous systematic literature review (SLR) approach. Analysis of 7 previous studies (years covered from 2011-2022) using Mendeley and NVivo highlighted that GCG and CSR implementation positively impact financial performance and corporate value. The summarize the key results indicate that the implementation of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) positively impacts a company's financial performance and corporate value. Financial performance also moderates this relationship, with companies exhibiting strong financial performance experiencing even greater benefits from GCG and CSR initiatives. However, the review is limited by its reliance on specific keywords and lacks comprehensive quality assessment. Nonetheless, it provides useful insights into the interconnections between GCG, CSR, financial performance, and value. Further research synthesizing broader literature and incorporating quality appraisals would strengthen the conclusions. This underscores the importance of GCG and CSR practices in enhancing a company's competitiveness and value in today's business landscape.