Exploring the Relationship between Foreign Ownership, Innovation and Firm Value: A Korean Perspective

Abstract: The main goal of the company is to maximize prosperity for shareholders, this can be achieved by maximizing the value of the company. This research was conducted to determine the factors that influence the value of the company to be studied are Corporate Social Responsibility and Tax Avoidance. The moderating variable in this study is Foreign Ownership. The sample of this research is manufacturing companies whose shares are listed on the Indonesia Stock Exchange for the period of 2016-2018 using purposive sampling method. While the analytical method used is the classic assumption test and hypothesis testThe results of this study indicate that corporate social responsibility has no influence on firm value, and tax avoidance has an influence on firm value. Foreign ownership is not able to be a moderating variable that strengthens the relationship between corporate social responsibility and corporate value while foreign ownership is able to be a moderating variable that strengthens the relationship between tax avoidance and firm value. Keywords: Firm value, Corporate Social Responsibility, Tax Avoidance and Foreign Ownership Abstrak: Tujuan utama perusahaan adalah untuk memaksimalkan kemakmuran bagi pemegang saham, hal ini dapat dicapai dengan memaksimalkan nilai perusahaan. Penelitian ini dilakukan untuk mengetahui faktor-faktor yang mempengaruhi nilai perusahaan yang akan diteliti adalah Corporate Social Responsibility dan Tax Avoidance. Variabel Moderating pada penelitian ini adalah Kepemilikan Asing.Sampel penelitian ini adalah perusahaan manufaktur yang sahamnya terdaftar di Bursa Efek Indonesia periode 2016-2018 dengan menggunakan metode purposive sampling. Sedangkan metode analisis yang digunakan adalah uji asumsi klasik dan uji hipotesis. Hasil penelitian ini menunjukkan bahwa corporate social responsibility tidak memiliki pengaruh terhadap nilai perusahaan, dan tax avoidance memiliki pengaruh terhadap nilai perusahaan. Kepemilikan asing tidak mampu menjadi variabel moderating yang memperkuat hubungan antara corporate social responsibility dengan nilai perusahaan sedangkan Kepemilikan asing mampu menjadi variabel moderating yang memperkuat hubungan antara tax avoidance dengan nilai perusahaan. Kata Kunci: Nilai Perusahaan, Corporate Social Responsibility, Tax Avoidance dan Kepemilikan Asing.

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Corporate Social Responsibility, Ownership Structure, and Firm Value: Evidence from Korea

Sustainability ◽

10.3390/su10072497 ◽

2018 ◽

Vol 10 (7) ◽

pp. 2497 ◽

Cited By ~ 10

Author(s):

Woo Kim ◽

Kunsu Park ◽

Sang Lee

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Empirical Evidence ◽

Ownership Structure ◽

Firm Value ◽

Stock Exchange ◽

Foreign Ownership ◽

Large Shareholder ◽

Corporate Social ◽

The Relationship

This study examines the relationship between corporate social responsibility (CSR) and firm value in the context of ownership structure. Specifically, our study explores whether large shareholder and foreign shareholder ownership play an important role in the CSR–firm value relationship. Using a sample of 48 firms listed on the Korea Stock Exchange (KSE) between 2010 and 2014, we find that CSR is positively associated with firm value. We further find that the relationship between CSR and firm value is weaker in firms with high large shareholder ownership than in firms with low large shareholder ownership. However, we find no evidence of the effect of foreign ownership on the relationship between CSR and firm value. This study sheds light on the importance of ownership structure in the relationship between CSR and firm value, suggesting significant implications for academics, practitioners, and policymakers. We contribute to the existing literature by providing empirical evidence on the effect of ownership structure on the CSR–firm value relationship. Policymakers may consider these results in implementing their policies that can enhance CSR activities.

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The Impact of Carbon Disclosure on Firm Value with Foreign Ownership as A Moderating Variable

Jurnal Dinamika Akuntansi dan Bisnis ◽

10.24815/jdab.v8i1.17011 ◽

2021 ◽

Vol 8 (1) ◽

pp. 1-14

Author(s):

Gazani Izmar Muhammad ◽

Y. Anni Aryani

Keyword(s):

Firm Value ◽

Sampling Method ◽

Annual Report ◽

Stock Exchange ◽

Foreign Ownership ◽

Moderation Effect ◽

Final Data ◽

The Impact ◽

The Relationship ◽

Sustainability Report

The purpose of the study is to analyze the effect of carbon disclosure on firm value and examine the moderation effect of foreign ownership. This study used all of the companies listed on the Indonesia Stock Exchange (BEI) between 2016 and 2018 as the population and employed a purposive sampling method to determine 194 companies as the final data observation. The data were collected from annual report and sustainability report released by the sample companies and analyzed using Moderated Regression Analysis (MRA). The result shows that carbon disclosure negatively affects firm value, while, foreign ownership significantly moderates the relationship between both variables.

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