Analysis of the Effect of Good Corporate Governance, Corporate Social Responsibility and Financial Performance on Corporate Values (The Case of the Banking Sector on the Indonesia Stock Exchange)

The purpose of this study is to determine the effect of the mechanism of Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), and the corporate's financial performance on corporate values, the case of the banking sector in the Indonesia Stock Exchange (IDX). Based on the complete banking data listed on the Indonesia Stock Exchange (IDX) processed by using Eviews software, the results of the research are as follows: The Independent Board of Commissioners (IDC) influences the values of banking companies in Indonesia, while Institutional Ownership (IO), Corporate Social Responsibility (CSR), and Financial Performance (FP) of banking companies do not affect the corporate values of banking companies in the Indonesia Stock Exchange (IDX).


INTRODUCTION
The application of good corporate governance is very much needed to be the key to the company's success in being able to compete in business activities. A good company is a company which is able to manage the existing resources, namely employees and stakeholders and shareholders well.
The implementation of GCG in Indonesia is still not carried out by many companies. Based on a survey from Booz-Allen & Hamilton in East Asia in 1998 showed that Indonesia was in the lowest position as shown in the following

RESEARCH METHODOLOGY
The reseach methodology is based on the research topics, namely: "The Effect of Good Corporation Governance and Corporate Social Responsibility, and Financial Performance on Corporate Values", in banking sector in the Indonesia Stock Exchange from 2014 to 2017. The study was conducted at banking companies listed on the Indonesia Stock Exchange for the period of 2014-2017, which all financial data had been published and audited by public accountants. The author took the data from the Indonesia Stock Exchange website www.idx.co.id about the annual financial report and sustainability report from the website of each banking company about the GRI index category for CSR disclosure. Table 3.

Variables and Measurement Scales Data Analysis Method Panel Data Analysis
Panel data is a combination of time series data and cross section. According to Jonathan Sarwono & Hendra N.S (2014) panel data is a collection of cross section data that is observed simultaneously from time to time (time series). In estimating the panel data model there are three choices that can be made, namely: 1.

Selection of Panel Data Regression Model Chow Test
The Chow test is used to find out which model will be selected in the estimation of the panel data regression model, whether it is the common effect or fixed effect model. This test is carried out with the following hypothesis: H0 : Based on the results of calculations shown in the table above, it can be concluded that the probability values F (0.8450) and chi-square (0.7550) are greater than α = 0.05 (5%) so H1 is rejected and H0 is accepted. This test proves that the common effect model is better used in estimating panel data regression than the fixed effect model.

Lagrange Multiplier Test
The Lagrange multiplier test is used to determine whether the random effect model is better than the common effect model. The method for testing the Langrage Multiplier that will be used is the Pagan Breusch Method. This method is used to test the significance of random effects based on the residual value of the common effect method with the hypothesis: H0: Based on the results of calculations shown in the table above, it can be seen that the P Breusch-Pagan value is greater than α = 0.05 (5%) so that H1 is rejected and H0 is accepted. This test proves that the common effect model is better used in estimating panel data regression than the random effect model. Estimated Panel Data Regression Based on the testing of the panel data regression model that has been done, it can be concluded that the panel data regression model that is appropriate for this research is the Common Effect Model.

F Test
The F test is used to test whether independent variables included in the model have a joint influence on the dependent variables with the hypothesis as follows: Ho : Overall, the independent variables have no significant effect on the dependent variables. Ha : Independent variables jointly or simultaneously influence significantly on the dependent variables. Hypothesis testing is done by comparing the F statistic probability value with the level of significance. The decision-making criteria are as follows: a. If the F statistic probability value is > α, α = 5% (0.05) then H0 is accepted b. If the F statistic probability value is <α, α = 5% (0.05) then H0 is rejected Source: Output Results Using Eviews 9 From the table above, it can be seen that the F statistic probability value is smaller than 0.05, which is 0.032649. This shows that Ho is rejected and Ha is accepted, which means that the model studied is appropriate or feasible to study and the independent variables are the institutional ownership data, board of commissioners, corporate social responsibility, and financial performance simultaneously have a significant effect on the corporate values.

Panel Data Regression Hypothesis Testing T Test
This test aims to determine the significant effect between each independent variable on the dependent variable. This test can be done by comparing the level of probability with the following conditions: • If the t statistic probability value is <significance level α = 0.05 then Ho is rejected.

•
If the t statistic probability value is > level of significance α = 0.05 then Ho is accepted. Discussion of Research Results.

Effect of Institutional Ownership on Company Values
The regression results show that institutional ownership variables do not affect the corporate value variable because the significant value is KI 0.1447 (> 0.05). After the t test of this study, institutional ownership variables have a regression coefficient marked negative, indicating that institutional ownership variables have a direction that is contrary to the corporate value variable. This requires intervention and the role of managers to make every effort to balance the interests of shareholders and stakeholders so as to have a positive impact on the corporate value. This also requires the role of investors to oversee the performance of managers so that they do not prioritize their own interests above the interests of the company. The position of institutional ownership in a company is quite strong but it does not guarantee that institutional ownership can increase the corporate values. Whereas as an institution that collects public funds, institutional investors are expected to invest funds obtained in investments that have a small default probability and take part in overseeing the performance of company managers.

Effect of the Independent Board of Commissioners on Corporate Values
The regression results show that the independent board of commissioner variables have a significant effect on the corporate value variables because of the significant value of DK 0.0021 (<0.05). After the t test of this study, the independent board of commissioner variables has a positive regression coefficient which indicates that the variables of the independent board of commissioners have an influence in line with the corporate values. The level of trust in the independent board of commissioners is able to influence the corporate value.
The large proportion of independent commissioners in a company cannot guarantee that the supervision carried out is effective if the company chooses independent commissioners only to fulfill the requirements. They will function effectively to monitor the running of the company.

Effect of Corporate Social Responsibility on Corporate Values
The regression results show that the variables of corporate social responsibility have no effect on corporate value variables because the significant value of CSR is 0.899 (> 0.05). After the t test of this study, the variables of corporate social responsibility have a regression coefficient marked negative which indicates that the variable corporate social responsibility has a direction that is contrary to the value of the company. This shows that the implementation of the sustainability report submitted by the company on the website is cannot contribute to be able to attract investors significantly.
The results of this study are not consistent with the research conducted by Hebron Simson (2013). In a study conducted by Hebron explained that the size of the level of disclosure of CSR by companies can affect the increase in the company itself.

Effect of Financial Performance on the value of the Company
The effect of Financial Performance on corporate value on the fourth hypothesis states that financial performance (ROI) has a positive effect on corporate value (Tobin's Q). Based on the results of data classification, it is known that the ROI variable does not affect Tobin's Q. The results of this study are not consistent with the research of Fachrurrozie and Utaminingsih (2014), Purwaningsih and Wirajaya (2014) which show that financial performance has a positive and significant effect on corporate values. The results of this study are also not in line with the Signaling theory which states that the profitability of a company can be a positive signal for investors. In profitability achieved by a company, it can be interpreted by investors as a good prospect for the company in the future. Investors will flock to buy the company's shares, so that the stock price increases and the corporate value will increase as well.

Conclusions
Based on the results of the research and discussion described in the previous chapter, the conclusions can be taken as follows: 1. Institutional ownership does not affect the corporate values. This requires intervention and the role of managers to make every effort to balance the interests of shareholders and stakeholders to have a positive impact on the corporate value. 2. Independent board of commissioners has a significant effect on corporate value variables. The level of trust in the board of independent commissioners is able to influence the corporate values. 3. Corporate social responsibility does not affect the corporate value variable. This shows that the implementation of the sustainability report submitted by the company on the website cannot contribute to attract investors. 4. The company's financial performance does not affect the value of banking companies listed on the Indonesia Stock Exchange (IDX).

Recommedations
Based on the conclusions above, the researcher can provide useful suggestions for the purposes of further studies, namely: 1. For further research it is recommended to extend the observation period so that more observation data can be obtained. 2. For further research it is recommended to expand the sample of companies used not only covering banking sector but also other industrial sectors. 3. For further research it is recommended to add tested variables, especially for good corporate governance variables because there are still many other variables that need to be tested.