Published date: Oct 15 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Sustainable Economics

Pages: 141–163

DOI: 10.18502/kss.v9i29.17248

Rofiqah Wahdahrofiqah@stiei-kayutangi-bjm.ac.idDoctoral Program of Economic, University of Merdeka Malang, Malang, Indonesia

Anwar SanusiPost Graduate Program, University of Merdeka Malang, Malang, Indonesia

Prihat AssihPost Graduate Program, University of Merdeka Malang, Malang, Indonesia

Implementing corporate social responsibility (CSR) and enterprise risk management (ERM) is becoming more important, since it is an indication of a long-term sustainable business. Investigating the effects of ERM, CSR, cost of capital (CoC), and company size on the value of manufacturing sector enterprises in Indonesia is the aim of this study. 56 manufacturing companies that are listed on the Indonesia Stock Exchange and that provide annual reports and detailed financial statements for the fiscal years 2016 through 2019 make up the study’s sample. Firm value is proxied by the Tobins’q (TQ) value. CoC is determined using WACC, CSR is evaluated using each company’s disclosure index, and the firm’s size is indicated by LnTotal Assets. The data in Eviews 12 was analyzed using panel data regression. The study results show that CSR and ERM are essential to raising a company’s worth. The company value increases with the degree of ERM and CSR adoption. The study also found a significant negative correlation between company size and worth. However, this study is unable to show how capital expenses affect the value of a company.

Keywords: CSR, cost of capital, enterprise risk management, firm size, firm value

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