THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY AND GROWTH ON FIRM VALUE IN BANKING INDUSTRY LISTED IN IDX 2010-2013

Abstract

This research was conducted to examine and analyzes the effect of Corporate Social Responsibility, growth, on firm value in banking industry. The benchmark of CSR is CSRi (Corporate Social Responsibility Index), growth is measured by firm assets, and firm value is measured by Tobin"™s Q ratio.

The sampling technique used in this research is purposive sampling. There are totally 36 banks listed in IDX (Indonesia Stock Exchange) until 2013. Sixteen banks from the total population were taken as sample size that fulfilled the criteria sample research. The research is mainly based on secondary data (documentary study and literature study). In order to evaluate the firm value of Indonesian banking, the analysis technique used was panel data for multiple regressions. More, classical assumption test (linearity test, normality test, multicollinearity test, autocorrelation test, and heteroscedasticity test) was conducted to ensure the regression equation obtained in panel data has accuracy in estimation, unbiased, and consistent.

The research found that CSR variable has positive and not significant effect on firm value. CSR variable is not able to affect the firm value in banking industry. Meanwhile, growth of company has positive and significantly affect the firm value of Indonesian banking.

Keywords: CSRi, growth, Tobin"™s Q