Effects of Corporate Social Responsibility and Corporate Governance on Firm Value: Empirical Evidences of the Listed Companies on the Stock Exchange of Thailand in the SET100

Authors

  • Watcharapong Tunpornchai Faculty of Business Administration, Kasetsart University, Thailand
  • Surang Hensawang Faculty of Business Administration, Kasetsart University, Thailand

Keywords:

Corporate Social Responsibility, Corporate Governance, Firm Value, KLD Rating

Abstract

This study demonstrates the empirical impact of Corporate Social Responsibility (CSR) and Corporate Governance (CG) on Firm Value (FV). The CSR was measured using the CSR index developed by KLD Research & Analytics, Inc (KLD rating model). The CSR was categorized into the following six areas including (1) environment, (2) community, (3) diversity, (4) employee relations, (5) product, and (6) corporate governance, CG was measured by the proportion of ownership structure, institutional ownership structure, and board structure. Additionally, firm value was calculated by market value using Tobin’s Q. The results revealed that the average overall CSR Score of 0.7997. Employee relation exhibited the highest score of 0.9625. On the other hand, community had the lowest score of 0.5625. Multiple regression analysis result revealed a positive overall effects of CSR and CG on FV. All six areas of CSR demonstrated consistent results with positive significant effects.

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Published

2019-09-24

How to Cite

Tunpornchai, W., & Hensawang, S. (2019). Effects of Corporate Social Responsibility and Corporate Governance on Firm Value: Empirical Evidences of the Listed Companies on the Stock Exchange of Thailand in the SET100. Asian Interdisciplinary and Sustainability Review, 7(1), 161–170. Retrieved from https://so05.tci-thaijo.org/index.php/PSAKUIJIR/article/view/217911

Issue

Vol. 7 No. 1 (2018): PSAKU International Journal of Interdisciplinary Research

Section

Articles