Corporate Social Responsibility and Corporate Value: Evidence from an Emerging Economy, Indonesia

The main aim of this study is to examine the relationship between corporate social responsibility (CSR), ownership structure and corporate value. More specifically, this study aims to investigate how (a) CSR influences corporate value, (b) ownership structure influences corporate value, (c) ownership structure influences CSR, and (d) CSR mediates the relationship between ownership structure and corporate value. Using multilevel data collected from financial service companies from Indonesia Stock Exchange over the period 2013 – 2016, the findings reveal that CSR mediates the relationship between ownership structure and corporate value. In other words, ownership structure promotes CSR, which in turn, increases corporate value.