THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Banks are intermediary institutions between parties who are overfunded and those who need funds. Banking management activities are based on trust. The main goal in business is to maximize the value of the company (value of the firm). Achieving maximum company value depends on internal factors and ma...

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Main Authors: Purbawangsa I.B.A., Suprasto H.B.
Format: Article
Language:English
Published: iVolga Press 2019-09-01
Series:Russian Journal of Agricultural and Socio-Economic Sciences
Subjects:
Online Access:https://rjoas.com/issue-2019-09/article_26.pdf
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author Purbawangsa I.B.A.
Suprasto H.B.
author_facet Purbawangsa I.B.A.
Suprasto H.B.
author_sort Purbawangsa I.B.A.
collection DOAJ
description Banks are intermediary institutions between parties who are overfunded and those who need funds. Banking management activities are based on trust. The main goal in business is to maximize the value of the company (value of the firm). Achieving maximum company value depends on internal factors and macroeconomic factors. Previous research linking Business Risk, Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) to profitability and the value of the company showed different results. Based on this research gap the researcher will try to use the profitability variable as a mediating variable. The method of data collection is the nonparticipant observation method. Secondary data in the form of financial statements of banking companies listed on the Indonesia Stock Exchange from 2015 to 2018. Taking samples using purposive sampling. Based on the sampling criteria obtained 104 banks as research samples. The data analysis technique used is path analysis. The test results show that: (1) business risk has a significant positive effect on profitability, (2) business risk has no significant effect on firm value, (3) GCG has a significant positive effect on profitability, (4) GCG has a significant positive effect on firm value, ( 5) CSR has a significant positive effect on profitability, (6) CSR has no significant effect on firm value, (7) Profitability has a significant positive effect on firm value, (8) Profitability is able to mediate the effect of business risk on firm value, (9) Profitability is able to mediate the effect of GCG on firm value, (10) Profitability is able to mediate the effect of CSR on firm value.
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spelling doaj.art-20e140947ab04845be94f47afcb2e18a2023-09-03T02:04:15ZengiVolga PressRussian Journal of Agricultural and Socio-Economic Sciences2226-11842019-09-0193924125110.18551/rjoas.2019-09.26THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGEPurbawangsa I.B.A.0Suprasto H.B.1Faculty of Economics and Business, University of UdayanaFaculty of Economics and Business, University of UdayanaBanks are intermediary institutions between parties who are overfunded and those who need funds. Banking management activities are based on trust. The main goal in business is to maximize the value of the company (value of the firm). Achieving maximum company value depends on internal factors and macroeconomic factors. Previous research linking Business Risk, Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) to profitability and the value of the company showed different results. Based on this research gap the researcher will try to use the profitability variable as a mediating variable. The method of data collection is the nonparticipant observation method. Secondary data in the form of financial statements of banking companies listed on the Indonesia Stock Exchange from 2015 to 2018. Taking samples using purposive sampling. Based on the sampling criteria obtained 104 banks as research samples. The data analysis technique used is path analysis. The test results show that: (1) business risk has a significant positive effect on profitability, (2) business risk has no significant effect on firm value, (3) GCG has a significant positive effect on profitability, (4) GCG has a significant positive effect on firm value, ( 5) CSR has a significant positive effect on profitability, (6) CSR has no significant effect on firm value, (7) Profitability has a significant positive effect on firm value, (8) Profitability is able to mediate the effect of business risk on firm value, (9) Profitability is able to mediate the effect of GCG on firm value, (10) Profitability is able to mediate the effect of CSR on firm value.https://rjoas.com/issue-2019-09/article_26.pdfBusiness riskgood corporate governancecorporate social responsibilityfirm value
spellingShingle Purbawangsa I.B.A.
Suprasto H.B.
THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
Russian Journal of Agricultural and Socio-Economic Sciences
Business risk
good corporate governance
corporate social responsibility
firm value
title THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
title_full THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
title_fullStr THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
title_full_unstemmed THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
title_short THE ROLE OF PROFITABILITY IN MEDIATING INFLUENCES GOOD CORPORATE GOVERNANCE, BUSINESS RISK, CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE OF BANKING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
title_sort role of profitability in mediating influences good corporate governance business risk corporate social responsibility and firm value of banking companies listed in indonesia stock exchange
topic Business risk
good corporate governance
corporate social responsibility
firm value
url https://rjoas.com/issue-2019-09/article_26.pdf
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