KnE Social Sciences
ISSN: 2518-668X
The latest conference proceedings on humanities, arts and social sciences.
The Role of Financial Performance, Audit Quality, and Corporate Social Responsibility on Firm Value Through Cost of Capital as Mediation
Published date: Oct 15 2024
Journal Title: KnE Social Sciences
Issue title: 8th International Conference on Sustainability (8th ICoS): Sustainable Economics
Pages: 181–198
Authors:
Abstract:
This study analyzes and determines the impact of financial performance, audit quality, corporate social responsibility (CSR) on firm value through cost of capital as mediation. This type of quantitative research uses an explanatory approach and causality of as many as 565 samples for 5 years in the ASEAN banking industry. The results of this study show that financial performance, audit quality, and CSR affect the company value . Banks with good financial performance, quality audits, and good CSR distribution will be able to improve the company’s image. For this reason, banking companies must improve financial performance, audit quality, and properly carry out responsibilities. Cost of capital becomes a mediating variable that strengthens the relationship of financial performance, audit quality, and CSR to company value. For banks when their financial performance is good, checks are carried out with good audit quality, channeling social responsibility well will be a trigger for increasing company value and will indirectly reduce capital costs that must be incurred by the company.
Keywords: financial performance, audit quality, CSR, firm value, cost of capital
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