Universitas Indonesia Conferences, International Accounting Conference - 2017

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COMPANY ASSESSMENT BASED ON ASEAN CORPORATE GOVERNANCE SCORECARD AND DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY: EVIDENCE FROM INDONESIA
Annie Susanto, Elfina Astrella Sambuaga

Last modified: 2017-08-22

Abstract


The purpose of this study is to assess companies based on the ASEAN Corporate Governance Scorecard and disclosure of Corporate Social Responsibility. The research sample consisted of 14 companiy selected using purposive sampling method for 3 consecutive years. There were 42 observations using multiple linear regression. Regression results show that Good Corporate Governance (GCG) using the ASEAN Corporate Governance Scorecard has no significant effect on firm value. This result is in contrast to previous research which found there is a link between GCG and firm value. Similarly, the disclosure results of Corporate Social Responsibility (CSR) which does not have a significant effect on the value of the company. The results of this study show the nature of investors in general in Indonesia. Investors tend to focus on the company's performance that is visible from the amount of profit generated, so that issues related to corporate governance, as well as corporate social responsibility programs have not received a meaningful response in the eyes of market participants. Based on the 'culture', it is recommended for regulators to participate in educating investors in order to choose investments that are not only profit-oriented, but can consider internal aspects of the company.

Type of Paper: Empirical


Keywords


ASEAN Corporate Governance Scorcard; Corporate Social Responsibility Disclosure; Firm Value

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