ORPORATE GOVERNANCE, CORPORATE SOCIAL RESPONSIBILITY, and FIRM RISK: THE CASE OF INDONESIAN-LISTED FIRMS

• Main Author: (NIM 29015022), MAZMUR
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23017
• Institution: Institut Teknologi Bandung

mplementation of good corporate governance and CSR need to be considered by <br /> <br /> companies in achieving more firm values. Those value depending on public <br /> <br /> interpretation, which is affecting to their stock prices. This research aims to proof <br /> <br /> linkage among corporate governance, CSR, and firm risk by theoretical and <br /> <br /> practical implications. Regarding theoretical implications, this study provides a <br /> <br /> model linking corporate governance, CSR, and firm risk. We use a sample data <br /> <br /> from 262 Indonesia listed firms and 1,252 firm year observations from 2010 to <br /> <br /> 2015. Our result show firms that adopt better corporate governance have a lower <br /> <br /> firm risk. Specifically, higher independent managerial ownership will reduce <br /> <br /> agency problem by combining their interest. Firms that spend high CSR expenses <br /> <br /> tend to have less volatile stock prices. This research conduct to provide such an <br /> <br /> information for corporate and investors to consider and analyze corporate <br /> <br /> governance and CSR in their decision making. <br />