The Effect of Corporate Social Responsibility, Good Corporate Governance, and Business Risk on the Enterprise Value of Property and Real Estate Companies

Abstract

The main goal of a company is to maximize profits or wealth, especially for its shareholders. It can be realized by efforts to increase or maximize the market value of the company's stock price so that the enterprise value will increase. There are several factors affecting enterprise value but this research will only examine 3 variables, i.e. CSR, GCG, and Business Risk. This research aims to examine the effect of CSR, GCG, and Business Risk to the Enterprise Value. GCG is proxied through managerial ownership, institutional ownership, independent commissioner ownership, and foreign ownership. The research populations are companies in property and real estate groups listed on the Indonesia Stock Exchange in the period of 2010-2016. The selection of the research samples is based on purposive sampling method. The analysis applies associative method with the classical assumption test, hypothesis testing, and multiple regression analysis by using the SPSS program. CSR has a positive and significant effect on Enterprise Value, Managerial Ownership has a negative effect on Enterprise Value, Institutional Ownership has a negative effect on Enterprise Value, Independent Commissioner Ownership has a positive effect on the Enterprise Value, Foreign Ownership has a positive effect on Enterprise Value, and Business Risk has a negative effect on the Enterprise Value. Supposedly, investors are more careful in choosing a company to invest their capital by looking at the CSR, GCG and Company Risk to improve the expected stock returns.