This study investigates the effect of Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), profitability (ROA), and leverage (DER) on firm value, with institutional ownership as a moderating variable. The research focuses on 16 companies in the property and real estate sub-sector listed on the Main Board of the Indonesia Stock Exchange (IDX) during the period 2019–2023. The sample was selected using purposive sampling, and data were analyzed using a moderated regression analysis (MRA) with a fixed-effects model. The findings reveal that GCG and DER have a significant negative impact on firm value, while CSR and ROA do not exhibit any significant effect. Furthermore, institutional ownership does not moderate the relationships between CSR, GCG, or ROA and firm value. However, it significantly moderates the effect of DER on firm value, indicating that institutional investors play a crucial role in mitigating financial risk's adverse influence on market valuation. The model demonstrates a high level of explanatory power, with an adjusted R-squared of 0.927 and an F-statistic significance level of 0.000, confirming the robustness of the proposed relationships. This study contributes to the theoretical discourse on corporate governance and firm valuation in emerging markets and offers practical implications for corporate managers and institutional investors in formulating strategic decisions related to ownership structure and financial leverage.
Simanjuntak et al. (Thu,) studied this question.
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