Good Corporate Governance Mechanism, Corporate Social Responsibility Disclosure on Firm Value: Empirical Study on Listed Company in Indonesia Stock Exchange

Abstract

To increase a firm value may create a conflict among owners. A certain mechanism is required to manage the company and this company is responsible for managing the conflicts and their negative effects. This research is aimed at identifying the influence such mechanism of good corporate governance (commissaries board, independent commissaries board, institusional owners, managerial owners, and audit committee) and CSR disclosure towards firm value. The population of this research is all companies listed in Indonesia Stock Exchange in 2010-2011, which expose and report their CSR activities. The sample consists of 33 companies selected by purposive sampling technique. The data are then analyzed descriptively and statistically. The research results show that the commissaries board, independent commissaries board, institusional owners, managerial owners, and audit committee, and CSR disclosure have a positive and insignificant influence towards firm value whereas the managerial ownership has a positive and significant influence, and the independent commissaries board has a negative and insignificant influence towards firm value. This research has a limitation because its sample consists of 33 companies and the time period covers only 2 years.