International Journal of Business and Applied Social Science

ISSN: 2469-6501 (Online)

DOI: 10.33642/ijbass
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VOLUME.6; ISSUE. 12; DECEMBER, 2020

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Articles

Author(s): Mustaruddin Saleh
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Abstract:
Corporate sustainability is a business approach that creates long-term shareholder value by exploiting opportunities and managing risks created from economic, environmental, and social activities. The purpose of this study is to analyze the influence of corporate sustainability and corporate governance on a firm’s value. The population in this study comprised all the firms which are registered on the Indonesia Stock Exchange (IDX) and that were also registered as participants of the Indonesian Sustainability Report Awards (ISRA). Using the purposive sampling technique, 75 observations were selected. From the hypothesis testing results, it was concluded that the company’s sustainability index and corporate governance variables have a positive but not significant effect on the firm’s value. The results of this study are in agreement with previous research (Eccles et al., 2014; Lourenco et al., 2012; and Wagner, 2010). The result also recommends that companies must be more actively involved in the sustainability reports with regards to the economic, social, and environmental aspects. This will affect the performance of the company and its output in the context of sustainable development.
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