CSR's Capability as a Conflict's Resolution to Enhance a Firm's Value in Indonesia

2019 ◽  
pp. 722-739
Author(s):  
Nila Tristiarini
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Positive Result ◽  
Cost Reduction ◽  
Agency Cost ◽  
Moderate Correlation ◽  
Research Outcomes ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Corporate Social

The purpose of this research is to analyse the part of agency cost reduction, firm's corporate governance quality in its relation with corporate social responsibility (CSR), and firm's value. The sample used in this research are firms that have CSR information disclose in their annual company's report and firms that are joining corporate governance ranking conducted by The Indonesian Institute for Corporate Governance (IICG) publicized as CGPI (Corporate Governance Perception Index) year 2006-2012. The research outcomes demonstrate that CSR produces a direct positive result to firm's value. It also demonstrates that agency cost reduction has a role as an intermediary between CSR and firm's value. Other outcomes demonstrate that firm's corporate governance quality do not moderate correlation between CSR and agency cost reduction.

CSR's Capability as a Conflict's Resolution to Enhance a Firm's Value in Indonesia

2015 ◽  
Vol 2 (1) ◽  
pp. 50-66 ◽  
Author(s):  
Nila Tristiarini
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Positive Result ◽  
Cost Reduction ◽  
Agency Cost ◽  
Moderate Correlation ◽  
Research Outcomes ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Corporate Social

The purpose of this research is to analyse the part of agency cost reduction, firm's corporate governance quality in its relation with corporate social responsibility (CSR), and firm's value. The sample used in this research are firms that have CSR information disclose in their annual company's report and firms that are joining corporate governance ranking conducted by The Indonesian Institute for Corporate Governance (IICG) publicized as CGPI (Corporate Governance Perception Index) year 2006-2012. The research outcomes demonstrate that CSR produces a direct positive result to firm's value. It also demonstrates that agency cost reduction has a role as an intermediary between CSR and firm's value. Other outcomes demonstrate that firm's corporate governance quality do not moderate correlation between CSR and agency cost reduction.

scholarly journals Corporate Governance Quality, Ownership Structure, Agency Costs and Firm Performance. Evidence from an Emerging Economy

2020 ◽  
Vol 13 (7) ◽  
pp. 154
Author(s):  
Haroon ur Rashid Khan ◽  
Waqas Bin Khidmat ◽  
Osama Al Hares ◽  
Naeem Muhammad ◽  
Kashif Saleem
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Agency Cost ◽  
State Ownership ◽  
Ownership Concentration ◽  
Listed Firms ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

The purpose of this paper is to investigate the effect of corporate governance quality and ownership structure on the relationship between the agency cost and firm performance. Both the fixed-effects model and a more robust dynamic panel generalized method of moment estimation are applied to Chinese A-listed firms for the years 2008 to 2016. The results show that the agency–performance relationship is positively moderated by (1) corporate governance quality, (2) ownership concentration, and (3) non-state ownership. State ownership has a negative effect on the agency–performance relationship. Various robust tests of an alternative measure of agency cost confirm our main conclusions. The analysis adds to the empirical literature on agency theory by providing useful insights into how corporate governance and ownership concentration can help mitigate agency–performance relationship. It also highlights the impact of ownership type on the relationship between agency cost and firm performance. Our study supports the literature that agency cost and firm performance are negatively related to the Chinese listed firms. The investors should keep in mind the proxies of agency cost while choosing a specific stock. Secondly; the abuse of managerial appropriation is higher in state-held firms as compared to non-state firms. Policymakers can use these results to devise the investor protection rules so that managerial appropriation can be minimized.

scholarly journals The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran

2022 ◽  
Vol 25 (1) ◽  
pp. 58-75
Author(s):  
Reza Hesarzadeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Written Responses ◽  
Additional Information ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Corporate Social ◽  
The Impact ◽  
New Evidence ◽  
To Receive

Securities commissions regularly review corporate reports, and if the review reveals a possible deficiency— such as a potential accounting error— or requires further clarifications, they send the company a comment letter (CL), including a request for providing written responses and relative additional information. Current study aims to examine whether and how corporate social responsibility (CSR) affects CLs. This empirical study is based on a sample of 437 Iranian firm year observations from 2011 to 2017. Results show that firms with more CSR are less likely to receive CL, that more CSR does not influence the association of managerial misbehavior and CLs, and that the negative association between CSR and CLs is stronger among firms facing higher environmental information asymmetry and firms having higher corporate governance quality. Collectively, this paper contributes to the literature by providing new evidence on the beneficial effect of CSR in the context of CLs. Las comisiones de valores revisan periódicamente los informes de las empresas, y si la revisión revela una posible deficiencia -como un posible error contable- o se requiere más aclaraciones, envían a la empresa una carta de comentarios (CL), que incluye una solicitud de respuesta por escrito y la relativa información adicional. El presente estudio pretende examinar si la Responsabilidad Social de las Empresas (RSE) afecta a las cartas de comentarios y cómo lo hace. Este estudio empírico se basa en una muestra de 437 observaciones anuales de empresas iraníes desde 2011 hasta 2017. Los resultados muestran que las empresas con más RSC tienen menos probabilidades de recibir CL y que más RSC no influye en la asociación entre mal comportamiento de los directivos y CL. También se pone de manifiesto que la asociación negativa entre RSC y CL es más fuerte entre las empresas que enfrentan una mayor asimetría de información ambiental y las empresas que tienen una mayor calidad de gobierno corporativo. En conjunto, este trabajo contribuye a la literatura aportando nuevas pruebas sobre el efecto beneficioso de la RSC en el contexto de las CL.

Valuation of Corporate Shares, Financial Characteristics, the Impact of Corporate Social Responsibility and Corporate Governance (The Case of Indonesia)

2015 ◽  
Vol 21 (4) ◽  
pp. 850-854
Author(s):  
Oktovianus Nawa Pau ◽  
Muhamad Junus Kasim
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Good Governance ◽  
Agency Cost ◽  
Good Corporate Governance ◽  
Corporate Size ◽  
Stock Value ◽  
Corporate Social ◽  
The Impact

This study aims to prove that if there has been an increase in the value of assets, leverage and corporate social responsibility influence on increasing the value of shares in the Indonesian capital market as a result of the implementation of good corporate governance in Indonesia. This study is a survey of a sample of 19 corporations that have implemented good governance and implement corporate social responsibility. We used fixed effect multivariate regression analysis to examine the dependent variables influences the independent variables. The result of the study show that by implementing good corporate governance can increase the value of corporate assets as well as the impact on the increase in value of the corporate stock market value. This is consistent with Dowling’s research that the implementation of good corporate governance is associated with increased long-term corporate image that will have implications on the value of the corporation. Good governance can explain the relationship between the various parties participating in the corporation that determines the direction of the value of corporate stocks. The model as a whole is significant explaining variation in dependent variable. Which is explaining by R-square 0.68 means that 0.32 explaining by external variables out of the model. Corporate governance influence to corporate size, leverage, agency cost and corporate social responsibility is up to 0.5275 it means moderate strong. Corporate governance influence to corporate stock value is only 0.0084 it means less significant. While corporate size, leverage, agency cost and corporate social responsibility influence to corporate stock value is 0.1477 means less significant.

scholarly journals THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY AS MEDIATION IN INDONESIA

2019 ◽  
Vol 2 (1) ◽  
pp. 1-8
Author(s):  
Rintan Nuzul Ainy ◽  
Khusnul Hidayah
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Company Performance ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Indirect Relationship ◽  
Corporate Social ◽  
Relationship Of

This   study   examines   the  direct   and   indirect   relationships   between   the  quality   of   corporate governance   and  company   performance  with   CSR   as   mediation.  A better  quality   of   corporate governance  means the more  fulfilled  of  stakeholder’s  interest so that it  will  give  positive  impact on  the company  performance. Data  of  corporate governance  quality and CSR  were obtained  by  carrying  out  a content analysis on  the company’s  annual report  for  2016.  The  analysis was done  based on  a template developed by  the Forum  for  Corporate  Governance  in  Indonesia  (FCGI)  and  GRI Index.  The  results show that companies that disclose information about CSR activities have better performance than those that do  not perform  it.  Such  information  is considered  as a sign  that the  company  has fulfilled  all stakeholders’ interests. Furthermore, the results also show that corporate governance quality does not affect the level of company performance. Nevertheless, this research cannot prove the indirect relationship  of  CSR on  the interaction  between  corporate governance  and company  performance in  Indonesia.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

Conditional Conservatism and Audit Fees

2014 ◽  
Vol 29 (1) ◽  
pp. 83-113 ◽  
Author(s):  
Hye Seung (Grace) Lee ◽  
Xu Li ◽  
Heibatollah Sami
Keyword(s):  
Corporate Governance ◽  
Potential Benefit ◽  
Audit Fees ◽  
Accounting Conservatism ◽  
Audit Risk ◽  
Debt Contracting ◽  
Conditional Conservatism ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Impact

SYNOPSIS In this study, we examine the impact of conditional conservatism on audit fees and, more importantly, the influence of corporate governance on this relationship. Prior literature presents evidence regarding explanations for the existence and pervasiveness of accounting conservatism such as compensation and debt contracting, shareholder litigation, taxation, and accounting regulation. However, there is very limited evidence or discussion of the potential benefit of accounting conservatism on audit risk and thus audit fees, and how the potential benefit can be attenuated by corporate governance quality. Using a sample of firm-year observations over the period of 2004–2009, we provide evidence consistent with conditional conservatism and firms' commitment to such conservatism reducing their audit fees. However, our evidence shows that this reduction in audit fees is moderated by higher corporate governance quality. These results have implications for auditors, regulators, standard setters, and firms' managers. In addition, our study extends the literature on the determinants of audit fees. JEL Classifications: M41; M42; D81; D22.

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