Mediation of CSR and Profitability on the Influences of GCG Mechanisms to the Firm Value

The purpose of this research was to determine the causal relationship among GCG mechanism,financial performance, CSR and firm's value. The model of the research was constructedby using financial performance and CSR as intervening variables on the effect ofGCG mechanism to firm's value. This research was accomplished on companies listed inJakarta Islamic Index (JII) in Indonesia Stock Exchange for the period of 2007-2013. Theresult showed that GCG mechanism tended to reject every CSR financing. CSR was positivelyaffected by Return on Investment (ROI). GCG mechanism represented by institutionalownership (INWN) had a positive effect to ROI. ROI had a positive effect to returnon equity (ROE), and ROE had a positive effect to firm's value. This study proved that ROIwas mediating significantly the effect of INWN to CSR, and ROE was mediating significantlythe effect of ROI to firm's value.ABSTRA