THE EFFECT OF FINANCIAL PERFORMANCE AND GOOD CORPORATE GOVERNANCE ON FIRM VALUE MODERATED BY CORPORATE SOCIAL RESPONSIBILITY VARIABLES ON THE INDONESIAN STOCK EXCHANGE

Abstract

The development of the world in the current era of globalization is accompanied by competitive business competition. Companies try to place themselves in a stable and competitive position to survive and develop. The banking sector has an important role as the main driver of economic growth in Indonesia. This research aims to explain the effect of financial performance and good corporate governance on firm value moderated by corporate social responsibility variables. This research was conducted in the banking sector listed on the Indonesia Stock Exchange for 2017-2021. Sampling in this study used saturated/census sampling techniques, namely as many as 195 data units. The data analysis technique used in this research is Moderated Regression Analysis (MRA) using the Statistical Product and Service Solution (SPSS) program. The study results show that 1) Financial Performance positively and significantly affects Firm Value; 2) Good Corporate Governance positively and significantly affects corporate value; 3) Corporate Social Responsibility can moderate the Financial Performance variable on Company Value; 4) Corporate Social Responsibility can moderate the Good Corporate Governance variable on Company Value.

Keywords

• financial performance
• good corporate governance
• corporate social responsibility