DO CORPORATE SOCIAL RESPONSIBILITY AND OWNERSHIP STRUCTURE CAN AFFECT THE FIRM VALUE?

Abstract

The research's goal is to investigate and analyze the impact of corporate social responsibility and ownership structure on firm value as mediated by company performance. On 2022, Indonesia Stock Exchange will be used as a forum for sampling, with 300 companies participating to meet research requirements. The WarpPLS program was used to analyze the data using structural equation modeling method. This research yields empirical evidence: first, Corporate social responsibility has the potential to increase company value, implying that value-added corporate social responsibility has the potential to directly increase company value; second, The ownership structure of a company can increase its value; this has implications for foreign ownership structure, managerial ownership, and institutional ownership, all of which can directly increase the value of a company; third, Corporate social responsibility can boost company performance, demonstrating that value-added corporate social responsibility can motivate company performance; fourth, Ownership structure, as stated by foreign ownership structure, managerial ownership, and institutional ownership, can improve company performance; fifth, Company performance, as measured by ROA and ROE, can increase firm value; sixth, Company performance moderates the impact of corporate social responsibility on firm value; and seventh, firm performance moderates the impact of ownership structure on firm value.