The Role of Financial Performance, Audit Quality and Corporate Social Responsibility on Firm Value Through Cost of Capital as Mediation
Abd. Rohman Taufik(a*), Anwar Sanusi(b), Prihat Assih(c)

a*) Faculty of Economics and Business Univercity PGRI Madiun, Indonesia
b) Postgraduate Program Universitas Merdeka Malang Jl. Terusan Raya Dieng No. 59, Malang, 65146, Indonesia.
c) Faculty of Economics and Business Universitas Merdeka Malang, Jl. Terusan Raya Dieng No. 62-64, Malang, 65146, Indonesia.

Abstract

This study aims to analyze and determine the impact of financial performance, audit quality, corporate social responsibility (CSR) on firm value through cost of capital as mediation. This type of quantitative research uses an explanatory approach and causality as many as 565 samples for 5 years in the ASEAN banking industry. The results of this study show that financial performance, audit quality and CSR affect the value of the company. Bankswith good financial performance, quality audits and good CSR distribution will be able to improve the company^s image. For this reason, banking companies must improve financial performance, improve audit quality and carry out responsibilities properly. Cost of capital becomes a mediating variable that strengthens the relationship of financial performance, audit quality and CSR to company value. For banks when their financial performance is good, checks are carried out with good audit quality, channeling social responsibility well will be a trigger for increasing company value and will indirectly reduce capital costs that must be incurred by the company

Keywords: Financial Performance, Audit Quality, CSR, Firm Value, Cost of capital.

Topic: Green Accounting