The Impact of Capital Structure, Company Size, and Good Corporate Governance on Financial Performance and Company Value

The Moderating Role of Corporate Social Responsibility

Authors

  • Fahmi Mayasari Doctoral Program in Management Science, Indonesia School of Economics (STIESIA)
  • Budiyanto Full Professor, Head of Doctoral Program in Management Science Study, Indonesia School of Economics (STIESIA), Surabaya, Indonesia
  • Nur Fadjrih Asyik Full Professor, Chairwoman, Indonesia School of Economics (STIESIA), Surabaya, Indonesia

DOI:

https://doi.org/10.20525/ijfbs.v13i4.3757

Keywords:

capital structure, company size, good corporate governance, financial performance, company value, corporate social responsibility

Abstract

This study aims to resolve the inconsistencies in prior research regarding the effects of capital structure, firm size, and good corporate governance (GCG) on company value. Additionally, it investigates the moderating role of corporate social responsibility (CSR) in the relationship between financial performance and company value, offering new insights into this dynamic interaction. This study utilizes a saturated sample or census approach, including all population members, due to the small population size and the researcher's ability to access the required data. Data from 71 manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2022 were obtained from their financial statements and annual reports. A quantitative analysis was conducted using Partial Least Square (PLS) regression with the SmartPLS 4.0 software. The results indicate that capital structure, company size, and GCG significantly impact financial performance. Additionally, capital structure was found to significantly affect company value, while company size and GCG did not. Financial performance significantly influenced company value, but CSR did not directly affect company value and did not moderate the relationship between financial performance and company value. 

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Published

2024-10-29

How to Cite

Mayasari, F., Budiyanto, & Asyik, N. F. (2024). The Impact of Capital Structure, Company Size, and Good Corporate Governance on Financial Performance and Company Value: The Moderating Role of Corporate Social Responsibility. International Journal of Finance & Banking Studies (2147-4486), 13(4), 38–47. https://doi.org/10.20525/ijfbs.v13i4.3757