The Role of CSR in Increasing Company Value

Oct 13, 2025 by magicalceylontours.com 66 views

Exploring the links of CSR, GCG, and dividend policies with company value in the agricultural sector

Get to know the role of Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), and dividend policies in increasing the value of companies in the agricultural sector

In recent years, the importance of Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), and dividend policies has been increasingly recognized by investors and companies alike. These factors are not only essential for the sustainability of companies but also play a crucial role in determining their value. This study aims to examine the effect of CSR, GCG, company size, and dividend policy on company value in the Agricultural Sub-Sector registered on the Indonesia Stock Exchange (IDX) in the 2017-2020 period.

Research Methods

This study uses data from 21 agricultural sub-sector companies listed on the IDX. The purposive sampling method was chosen to determine the sample with certain criteria. Data analysis was carried out using multiple regression to test the effect of independent variables (CSR, GCG, company size, and dividend policy) on the dependent variable (company value).

Research Result

The analysis results show that the company size variable has no significant effect on company value. However, this study found that profitability, CSR, GCG, and dividend policies have a positive and significant influence on the value of the company in the agricultural sub-sector.

Analysis and Implications

These findings indicate that agricultural sub-sector companies that have a strong commitment to CSR, apply GCG principles, and carrying out good dividend policies tend to have higher company value. This shows that investors increasingly respect non-financial aspects and sustainability in assessing company performance. The results of this study have significant implications for agricultural sub-sector companies, regulators, and investors.

The Importance of Implementation of CSR and GCG in the Agriculture Sector

The agricultural sector has an important role in the Indonesian economy. The application of CSR and GCG can help the agricultural sub-sector company to build trust and increase the value of companies in the eyes of investors. By implementing CSR and GCG, companies can demonstrate their commitment to sustainability and social responsibility, which can lead to increased investor confidence and company value.

Benefits of Research

This study provides important insights for agricultural sub-sector companies in Indonesia, regulators, and investors. These findings can be used as a basis for improving the quality of corporate governance, the application of CSR, and sustainable dividend policies, so as to contribute to increasing company value and overall economic growth.

Suggestion

Agricultural sub-sector companies need to strengthen commitment to CSR and GCG to increase investor confidence and company value.
Investors need to consider non-financial aspects such as CSR and GCG in assessing company performance.
Regulations that support the application of CSR and GCG need to be strengthened to encourage agricultural sub-sector companies to be more responsible and sustainable.

Resource

[Indonesia Stock Exchange] (https://www.idx.co.id/)
[Capital Market and Financial Institution Supervisory Agency] (https://www.bapepam.go.id/)

Conclusion

This study shows that CSR, GCG, and dividend policy are important factors that can increase company value in the agricultural sub-sector. Companies need to focus on applying the principles of sustainability and good governance to increase company value and gain investor trust. The findings of this study have significant implications for agricultural sub-sector companies, regulators, and investors, and can contribute to increasing company value and overall economic growth.

The Role of CSR in Increasing Company Value

Corporate Social Responsibility (CSR) is a critical factor in determining company value. CSR refers to the company's commitment to social and environmental responsibility, and its impact on stakeholders. Companies that demonstrate a strong commitment to CSR tend to have higher company value, as investors increasingly respect non-financial aspects and sustainability in assessing company performance.

The Importance of CSR in the Agricultural Sector

The agricultural sector has an important role in the Indonesian economy, and CSR is essential for the sustainability of companies in this sector. By implementing CSR, companies can demonstrate their commitment to social and environmental responsibility, which can lead to increased investor confidence and company value.

Benefits of CSR

The benefits of CSR are numerous, including:

Increased investor confidence
Improved company reputation
Enhanced social and environmental responsibility
Increased company value

Suggestion

Agricultural sub-sector companies need to strengthen commitment to CSR to increase investor confidence and company value.
Investors need to consider non-financial aspects such as CSR in assessing company performance.

The Role of GCG in Increasing Company Value

Good Corporate Governance (GCG) is a critical factor in determining company value. GCG refers to the company's commitment to transparency, accountability, and fairness in its operations. Companies that demonstrate a strong commitment to GCG tend to have higher company value, as investors increasingly respect non-financial aspects and sustainability in assessing company performance.

The Importance of GCG in the Agricultural Sector

The agricultural sector has an important role in the Indonesian economy, and GCG is essential for the sustainability of companies in this sector. By implementing GCG, companies can demonstrate their commitment to transparency, accountability, and fairness, which can lead to increased investor confidence and company value.

Benefits of GCG

The benefits of GCG are numerous, including:

Increased investor confidence
Improved company reputation
Enhanced transparency and accountability
Increased company value

Suggestion

Agricultural sub-sector companies need to strengthen commitment to GCG to increase investor confidence and company value.
Investors need to consider non-financial aspects such as GCG in assessing company performance.

The Role of Dividend Policy in Increasing Company Value

Dividend policy is a critical factor in determining company value. Dividend policy refers to the company's decision to distribute a portion of its profits to shareholders. Companies that demonstrate a strong commitment to dividend policy tend to have higher company value, as investors increasingly respect non-financial aspects and sustainability in assessing company performance.

The Importance of Dividend Policy in the Agricultural Sector

The agricultural sector has an important role in the Indonesian economy, and dividend policy is essential for the sustainability of companies in this sector. By implementing a strong dividend policy, companies can demonstrate their commitment to shareholder value, which can lead to increased investor confidence and company value.

Benefits of Dividend Policy

The benefits of dividend policy are numerous, including:

Increased investor confidence
Improved company reputation
Enhanced shareholder value
Increased company value

Suggestion

Agricultural sub-sector companies need to strengthen commitment to dividend policy to increase investor confidence and company value.
Investors need to consider non-financial aspects such as dividend policy in assessing company performance.

Conclusion

Frequently Asked Questions

This article aims to provide answers to frequently asked questions related to the analysis of the effect of Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), company size, and dividend policy on company value of agricultural sub-sector registered on the 2017-2020 Indonesia Stock Exchange.

Q1: What is the main objective of this study?

A1: The main objective of this study is to examine the effect of CSR, GCG, company size, and dividend policy on company value in the agricultural sub-sector registered on the Indonesia Stock Exchange (IDX) in the 2017-2020 period.

Q2: What is the sample size of this study?

A2: The sample size of this study is 21 agricultural sub-sector companies listed on the IDX.

Q3: What is the research method used in this study?

A3: The research method used in this study is multiple regression analysis.

Q4: What are the independent variables in this study?

A4: The independent variables in this study are CSR, GCG, company size, and dividend policy.

Q5: What is the dependent variable in this study?

A5: The dependent variable in this study is company value.

Q6: What are the findings of this study?

A6: The findings of this study show that CSR, GCG, and dividend policy have a positive and significant influence on company value in the agricultural sub-sector.

Q7: What are the implications of this study?

A7: The implications of this study are that agricultural sub-sector companies that have a strong commitment to CSR, apply GCG principles, and carry out good dividend policies tend to have higher company value.

Q8: What are the benefits of this study?

A8: The benefits of this study are that it provides important insights for agricultural sub-sector companies, regulators, and investors, and can contribute to increasing company value and overall economic growth.

Q9: What are the limitations of this study?

A9: The limitations of this study are that it only examines the effect of CSR, GCG, company size, and dividend policy on company value in the agricultural sub-sector, and does not consider other factors that may influence company value.

Q10: What are the suggestions for future research?

A10: The suggestions for future research are that it should examine the effect of other factors on company value, such as market conditions, industry trends, and government policies.

Additional Questions and Answers

Q11: What is the role of CSR in increasing company value?

A11: CSR plays a critical role in increasing company value by demonstrating a company's commitment to social and environmental responsibility, which can lead to increased investor confidence and company value.

Q12: What is the importance of GCG in increasing company value?

A12: GCG is essential for increasing company value by demonstrating a company's commitment to transparency, accountability, and fairness, which can lead to increased investor confidence and company value.

Q13: What is the role of dividend policy in increasing company value?

A13: Dividend policy plays a critical role in increasing company value by demonstrating a company's commitment to shareholder value, which can lead to increased investor confidence and company value.

Q14: What are the benefits of implementing CSR, GCG, and dividend policy?

A14: The benefits of implementing CSR, GCG, and dividend policy are numerous, including increased investor confidence, improved company reputation, enhanced social and environmental responsibility, and increased company value.

Q15: What are the suggestions for agricultural sub-sector companies?

A15: The suggestions for agricultural sub-sector companies are to strengthen their commitment to CSR, GCG, and dividend policy to increase investor confidence and company value.

Conclusion

This Q&A article provides answers to frequently asked questions related to the analysis of the effect of CSR, GCG, company size, and dividend policy on company value of agricultural sub-sector registered on the 2017-2020 Indonesia Stock Exchange. The findings of this study show that CSR, GCG, and dividend policy have a positive and significant influence on company value in the agricultural sub-sector. The implications of this study are that agricultural sub-sector companies that have a strong commitment to CSR, apply GCG principles, and carry out good dividend policies tend to have higher company value.