The Importance of Corporate Social Responsibility and Financial Performance for the Value of Banking Companies in Indonesia

Dwi Ermayanti Susilo , Grahita Chandrarin , Boge Triatmanto
International Journal of Economics and Business Administration, Volume VII, Issue 2, 231-238, 2019
EOI: 10.11220/ijeba.07.02.021
DOI: 10.35808/ijeba/239


Purpose: This study aims to determine the influence of the importance of corporate social responsibility and financial performance to the value of banking companies in Indonesia. Design/Methodology/Approach: This research was conducted on 30 companies engaged in Banking in Indonesia listing on JSE 2010-2016. Findings: The results show that corporate social responsibility and financial performance have influenced the value firm of banking companies in Indonesia. Practical Implications: Indonesian banks must strengthen their capital structure and improve efficiency in order to compete with foreign banks. The company's goal is to increase the company's value or the growth of the company. Originality/Value: The results highlighted that the higher the value of corporate social responsibility issued by the company the better the performance of the company, the better the value of firm generated by Indonesian Banking companies.

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