Evaluating the effects of corporate governance and CSR on firm value in an emerging market: Insights into information quality

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Abstract

This research examines how corporate governance (CG) and corporate social responsibility (CSR) affect firm value in Indonesia, emphasizing the importance of information quality. Ordinary least squares (OLS) and two-stage least squares (2SLS) estimations of a Cobb-Douglas model were applied to 83 firms listed on the Indonesia Stock Exchange (IDX) (2007–2022). The findings show that the stronger CG and CSR initiatives improved information quality, which in turn enhances firm value. Firms excluded by CSR criteria limit the sample. Strengthening CG oversight and tightening governance and CSR disclosure regulations would improve information quality. One of the few studies linking CG and CSR through a firm’s financial information quality, providing empirical evidence from a developing-country context. The research shows information quality mediates the CG-CSR-firm value relationship and offers policy-relevant recommendations to strengthen governance and disclosure.

Keywords: CG, CSR, Information Quality, Firm Value, OLS, 2SLS

Authors’ individual contribution: Conceptualization — S.P. and A.A.L.; Methodology — S.P. and A.A.L.; Investigation — S.P., A.A.L., A.I.K., and M.N.; Resources — S.P., A.A.L., and M.N.; Writing — S.P., A.A.L., A.I.K., and M.N.; Supervision — A.A.L. and A.I.K; Funding Acquisition — S.P. and A.A.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C3, M1, M4

Received: 09.10.2025
Revised: 13.11.2025; 05.03.2026
Accepted: 30.03.2026
Published online: 31.03.2026

How to cite this paper: Pattisahusiwa, S., Lahjie, A. A., Kesuma, A. I., & Norsita, M. (2026). Evaluating the effects of corporate governance and CSR on firm value in an emerging market: Insights into information quality. Corporate Governance and Sustainability Review, 10(2), 157–168. https://doi.org/10.22495/cgsrv10i2p14