Ethical Businesses Outperform Rivals, Boosting Shareholder Value
The study looked at how corporate social responsibility, good corporate governance, and ownership structure affect financial performance and firm value in companies listed on the Jakarta Islamic Index. They found that these factors have a positive impact on financial performance. Good corporate governance also significantly influences firm value, while corporate social responsibility and ownership structure have a positive but insignificant effect on firm value. Additionally, corporate social responsibility and ownership structure indirectly affect firm value through financial performance, while good corporate governance directly impacts firm value through financial performance.