The Importance of Considering GCG and CSR While Pursuing Corporate Share Value

• Main Authors: Martha F. Cahyandito, Oktovianus N. Pau
• Format: Article
• Language: English
• Published: Universitas Padjadjaran 2017-03-01
• Series: Jurnal Bisnis dan Manajemen
• Subjects: GCG; CSR; Corporate Share Value; Listed Companies; Indonesian Stock Market
• Online Access: http://journal.feb.unpad.ac.id/index.php/jbm/article/view/44

Many academic debates have been arising, either pro or contra, about the influence of GCG implementaton against the implementaton of CSR, which ultmately culminated in the increase in the price of the shares. Unfortunately, despite these debates, GCG implementaton (GCG index) in Indonesia is stll low compared to other Asian countries, even though GCG is considered as a form of the commitment of corporaton, especially public companies who are listed on the Indonesia Stock Exchange, in showing responsibility and professionalism of its work to all stakeholders. This research is intended to give a more concrete perspectves regarding the influence of GCG toward CSR and on the value of the shares of these companies that are registered on the Indonesian Insttute for Good Corporate Governance, namely companies that claim itself has been implementng GCG. The result of the study showed that there is indeed the influence of GCG implementaton on CSR implementaton and the increase in the price of the shares. But it is worth notng that the share price is more influenced by the GCG implementaton than by CSR implementaton. This shows that the Indonesian investors stll give priority to the GCG indicators (commitment, competence, transparency, leadership, accountability, the ability to work together, independency, vision, mission and corporate values, independency, moral and ethics, justce, and strategy), more than the commitment of the company in conductng the CSR, in determining the shares purchasing decision.