Firm Value: The Role of Financial Performance and Corporate Social Responsibility

Abstract

This study examines the influence of financial performance and corporate social responsibility (CSR) on company value, particularly in Sharia business units. The data used in this study are secondary data obtained from the official website of the Financial Services Authority (OJK) and the official websites of the banking companies sampled in this study. The sampling technique used was purposive sampling, resulting in a sample of seven companies over a five-year period. The analytical tool used in this study was panel data regression with Eviews 12. The results of this panel data regression test indicate that financial performance, as proxied by ROA, has a significant negative effect on company value; ROE has a significant positive effect on company value; CAR has a significant positive effect on company value; FDR has no significant effect on company value; and CSR has no significant effect on company value.