The Mediating Role of Corporate Social Responsibility (CSR) Disclosure on Good Corporate Governance (GCG) and Firm Value. A Technical Note

Authors

Saparila Worokinasih, Department of Business Administration, Universitas Brawijaya, Malang, IndonesiaFollow
Muhammad Lutfi Zuhdi bin Mohamad Zaini, School of Government, COLGIS, Universiti Utara Malaysia, Sintok, Malaysia

Abstract

­­The application of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) disclosure is one way to increase company value by focusing on the balance of internal and external interests. This study aim is to determine the effect of GCG and CSR disclosure on company value. This type of research is explanatory research with a quantitative approach, using a sample of 13 mining companies listed on the Indonesia Stock Exchange. By using Partial Least Square (PLS) technique, the result showed that (1) Good Corporate Governance has a significant and positive effect on Corporate Value (p-value = 0,000; α = 5%); (2) Good Corporate Governance has a significant and negative effect on Corporate Social Responsibility Disclosure (p-value = 0,000; α = 5%); (3) Corporate Social Responsibility Disclosure has not had a significant effect on Corporate Value (p-value = 0.875; α = 5%).

Recommended Citation

Worokinasih, Saparila and Zaini, Muhammad Lutfi Zuhdi bin Mohamad, The Mediating Role of Corporate Social Responsibility (CSR) Disclosure on Good Corporate Governance (GCG) and Firm Value. A Technical Note, Australasian Accounting, Business and Finance Journal, 14(1), 2020, 88-96. doi:10.14453/aabfj.v14i1.9