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Dr. Eko SUYONO
THE EFFECT OF EXTERNAL OWNERSHIP STRUCTURE AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE TO FIRM FINANCIAL PERFORMANCE AND ITS IMPLICATION TO SHAREHOLDERS VALUE
ABSTRACT
The aim of this research is to examine the effect of external ownership structure and corporate social responsibility disclosure on firm financial performance and its implication to shareholders value. The population of this research is non financial corporations that were listed at Indonesian Stock Exchange with sampling techniques using target population. The type of data in this research is secondary data that could be gathered on firm website or in Center of Capital Market Reverences Indonesian Stock Exchange. All of the data were analyzed using structural equation modelling Program of AMOS 16.
Exogenous variables were ownership structure, which is proxied by the percentage of individual/public and institutional ownership, and corporate social responsibility disclosure proxied by corporate social disclosure index (CSDI) in economic, environment, and social dimension. Meanwhile endogenous variables were firm financial performance, which is proxied by return on assets (ROA), return on equity (ROE), and Tobin’s Q, and shareholders value proxied by total shareholders return (TSR) and wealth added index (WAI).
This research showed that external ownership structure has positive direct effect to firm financial performance, corporate social responsibility disclosure has positive direct effect to firm financial performance, external ownership structure has positive direct effect to shareholders value, corporate social responsibility disclosure has positive direct effect to shareholders value, and firm financial performance has positive effect to shareholders value. In other side, this research also showed that external ownership structure has positive indirect effect to shareholders value with firm financial performance as intervening, and corporate social responsibility disclosure has positive indirect effect to shareholders value with firm performance as intervening.
Keywords: External ownership structure, corporate social responsibility disclosure, firm financial performance, shareholders value
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