GCG, CSR and Profitability: Drivers of Firm Value in Indonesia’s Consumer Goods Industry

Abstract

This research examines how Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), and profitability influence firm valuation within Indonesia's consumer goods industry. Using secondary panel data from 23 publicly traded companies spanning 2019-2023, multiple linear regression analysis with logarithmic transformation was employed. Results demonstrate that GCG exhibits a statistically significant negative impact on firm value, while CSR and Return on Assets (ROA) show significant positive influences. Collectively, these variables explain 57.7% of firm value variance. The findings indicate that financial performance and transparent CSR reporting serve as primary value creators, while governance effectiveness appears questionable in the Indonesian context.