The Role of Investor Trust in Mediating Corporate Social Responsibility, Environmental Performance and Financial Performance on Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange

Eka Larasati Maghfiroh *

Department of Accounting, Faculty of Economics and Business, Jember University, Indonesia.

Ahmad Roziq

Department of Accounting, Faculty of Economics and Business, Jember University, Indonesia.

Ririn Irmadariyani

Department of Accounting, Faculty of Economics and Business, Jember University, Indonesia.

*Author to whom correspondence should be addressed.


Abstract

This study aims to determine, test, and prove the effect of Corporate Social Responsibility, environmental performance, and financial performance on firm value by mediating investor trust. Corporate Social Responsibility, environmental performance, and financial performance are aspects that can be given by companies to be responded to by investors. All aspects carried out by the company are a form of effort to increase the value of the company. This type of research is explanatory research using a quantitative approach to test the hypothesized variables. Manufacturing companies listed on the Indonesia Stock Exchange in 2017-2021 became the population in this study and used a purposive sampling method to determine the research sample so that the results found 38 companies. The data that has been collected is then subjected to descriptive statistic testing, classic assumption testing, hypothesis testing, path analysis. The results of the tests that have been carried out show that Corporate Social Responsibility has an effect on investor trust, while environmental performance and financial performance have no effect on investor trust. Corporate Social Responsibility has no effect on firm value, while environmental performance, financial performance, and investor trust have an effect on firm value. Corporate Social Responsibility has an effect on firm value by mediating investor trust, while environmental performance and financial performance have no effect on firm value by mediating investor trust.

Keywords: Corporate social responsibility, environmental performance, financial performance, investor trust, firm value


How to Cite

Maghfiroh, Eka Larasati, Ahmad Roziq, and Ririn Irmadariyani. 2023. “The Role of Investor Trust in Mediating Corporate Social Responsibility, Environmental Performance and Financial Performance on Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange”. Asian Journal of Economics, Business and Accounting 23 (4):17-26. https://doi.org/10.9734/ajeba/2023/v23i4927.

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