The six banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank CIMB Niaga, and Bank Panin. This study surveyed six banks registered in BUKU 4-member commercial banks operating in Indonesia that have been listed on the Indonesian Stock Exchange and implemented digital banking practices from 2007 to 2019. This study examines the effect of profitability and bank size on firm value through capital structure. Sustainable firm value is the central concept for corporations, including the banking industry.
A decrease in CoC can increase profitability and have an impact on FV increasing. The findings show that CG and CSR can improve the company performance and corporate image internally and externally, thereby increasing the investors` confidence, and companies have the opportunity to obtain inexpensive funding sources that can reduce CoC. The CG and CSR have a negative effect on CoC, while CoC has a negative effect on FV. The CoC acts as a mediating variable in this relationship. According to direct testing, CG has a negative effect on FV, while CSR has a positive effect. These findings are consistent for all three firm value assessments. Results of hypotheses testing using Partial Least Squares (PLS) show that CG and CSR have both direct and indirect effects on FV. This study presents the analysis of three firm value proxies (Tobin’s q (TQ), Price Earnings Ratio (PER), and Price to Book Value (PBV)).
The research sample includes 27 companies that publish sustainability reports and corporate governance reports, with an observation period from 2010 till 2016. This study analyzes the impact of corporate governance (CG) and corporate social responsibility (CSR) on firm value (FV) through the cost of capital (CoC) in public companies of Indonesia. At the same time research results in several countries provide diverse empirical evidence. The consultant has an active role and formally is directly involved in the mudharabah financing, but its characteristic only gives consideration and advice to shahibul maad and mudharabah as the key player in the mudharabah financing.Ĭorporate governance (CG) and corporate social responsibility (CSR) are important subjects for corporate sustainability that affect firm value (FV). It is conducted by assigning consultants in mudaraba financing. Research result exhibits the following:ġ) The implementation of mudaraba financing was not in accordance with sharia implementation requirement, because there is still a gap in the income sharing system that causes the contract of mudharabah financing cannot be continued.Ģ) A principal has more information than an agent, because the agent has limited information especially in terms of that about cooperation instrument (mudharabah financing), while the principal is way more about data on that cooperation instrument.ģ) Optimizing the implementation of mudaraba financing is needed by improving mudaraba financing governance. The analysis used is an interactive model developed by Miles and Huberman. The study used a qualitative method of single case study approach. This research was conducted at the Bank Muamalat Ternate Branch. This study aims to analyze the implementation of mudaraba financing at Sharia banks, to consider the relationship between a principal and an agent in mudaraba financing at Sharia banks, and to explore efforts to optimize the implementation of mudaraba financing at Sharia banks.
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