Moderating Effect of Profitability and Company Size in the Effect of Corporate Governance and CSR on Company Value

Abstract

This study aims to examine the influence of good corporate governance practices and CSR disclosure on firm value, moderated by profitability and company size. Good corporate governance mechanisms are measured by institutional ownership, managerial ownership, and independent commissioners. The research population includes companies in the energy and basic materials sectors listed on the Indonesia Stock Exchange from 2019 to 2023. Research data samples were taken using purposive random sampling. The results of regression testing without moderation show that profitability and company size have a significant influence on company value. Meanwhile, institutional ownership, managerial ownership, independent commissioners, and CSR disclosure do not have a significant influence on company value. The results of moderation regression testing show that profitability cannot moderate the influence of institutional ownership, managerial ownership, independent commissioners, and CSR disclosure on company value. Meanwhile, company size can moderate the influence of CSR disclosure on company value, but cannot moderate the influence of governance on firm value. Collectively, good corporate governance practices, CSR disclosure, profitability, and company size contribute significantly to company value. Companies should strategically enhance CSR disclosure, particularly in larger firms, to boost company value.