The Role of Debt as Control Mechanism for CSR Activity and Corporate Values in Indonesia

Nila Tristiarini, Dian Prawitasari, Anna Sumaryati, Imang Dapit Pamungkas

Abstract

This article describes the role of Debt and Corporate Social Responsibility Activity on increasing Corporate Value and does debt as a control mechanism has a role in mediating the relationship between Corporate Social Responsibility Activity in increasing Corporate Value as a monitoring mechanism. So, that CSR activities carried out by companies are not only as green washing, which is carried out as a form of opportunistic behavior from managers, but also activities. CSR through disclosure of SR is carried out solely to fulfill stakeholder interests and increase company and value Socially responsible and expected to improve the company's image. This research comprises companies ranked I on the LQ45 Stock Exchange Index on the Indonesian Stock Exchange for the period from 2016 to 2019. The population that meets the criteria following purposive sampling is determined in this study as many as 164 samples. New research result development Debt acts as a mediator in the relationship between the Corporate Social Responsibility Activity and the Corporate Value. It can help the company develop strategies that support CSR activities that may improve the company's image in the market. Besides, this research also assists decision-makers and strategic planning in developing various policies that will contribute to the company's survival.

 

 

 

Keywords: Corporate Social Responsibility, Sustainability Reporting, Corporate Value, Debt.

 

 

 

 


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