The value of a company is measured by the stock market value index, which is heavily influenced by investment opportunities and provides investors with a view of a company. This value provides investors with a view of the company and is usually related to the stock price; the higher the stock price, the higher the value of the company, which will provide prosperity to shareholders [1].

One factor that is considered to be able to influence the value of the company is manager ownership, which is measured by the percentage of shares owned by managers. Because of their focus on reducing risk, managers tend to do things that benefit themselves. If the risk is greater than the benefit, management will not try. [2].

In addition to the managerial ownership factor, the company's value can also be influenced by institutional ownership. Investors believe that institutional ownership can help managers make decisions, because they have a large investment value in the capital market that allows them to function as a monitoring agent and effective monitoring will benefit investors [3].

Corporate Social Responsibility (CSR) is part of its business strategy, to support the company's value in the future. Accountability can be met and information asymmetry can be reduced if the company reports and discloses its CSR activities to stakeholders. With CSR reporting and disclosure, stakeholders will be able to evaluate how CSR is implemented and provide awards/sanctions to the company according to their evaluation [4].

This study is about manufacturing companies listed on the IDX that have experienced an increase in the impact of tight competition in improving their company performance. All manufacturing companies listed on the Indonesia Stock Exchange (IDX) will be the subject of research from 2020 to 2024. The selection of manufacturing companies as the population in this study is based on the fact that manufacturing companies are more easily affected by economic conditions. This is because, compared to other business industries, the manufacturing industry occupies the majority position. Due to the rapid growth of the manufacturing industry, increasing stock prices and stock trading activities on the IDX, manufacturing companies have a high investor value compared to non-manufacturing industries.

Based on the 2024 Indonesian Manufacturing Sector Growth Data, it fell to 50.7 in June 2024, from 52.1 in May 2024. Although it has remained in the expansion zone for 34 consecutive months, this figure is the lowest since May 2023 and is the third consecutive decline. This decline was mainly due to a significant increase in raw material costs, which was exacerbated by the weakening of the rupiah exchange rate by 5.9% against the US dollar throughout this year. On the other hand, product prices only increased slightly due to slowing demand. The obstacles in the development of the national manufacturing sector must be overcome immediately so that the performance of the national manufacturing sector remains optimal and the value of national manufacturing sector companies also remains stable by considering managerial ownership, institutional ownership and CSR of manufacturing companies. Managerial ownership is often associated with efforts to increase company value because managers, in addition to being management and also owners of the company, will feel the direct impact of the right decisions. Institutional ownership is believed to be able to monitor managerial actions better than individual investors.

Literature Review and Hypothesis Development

Signaling Theory was first proposed by Michael Spence in 1973. A signal is an action taken by company management that provides investors with an indication of how management views the company's prospects. 

Company value is the market value of a company's equity plus the market value of its debt. Company value can also be interpreted as investors' perception of the company's level of success which is closely related to its stock price.

According to the Shariah Enterprise Theory in running operations, companies must have concern for broad stakeholders, namely Allah, humans and nature. Allah as God gives two responsibilities to humans on earth, namely to worship Allah and to maintain the surrounding natural environment.

Islamic Corporate Governance is a system that directs and controls companies to fulfill company goals by protecting the interests and rights of all stakeholders by using basic decision-making concepts based on Islamic social scientific epistemology.

Financial performance is the determination of certain measurements that can measure a company's success in generating financial results, namely profit.

Hipotesis

Signaling Theory explains how companies use certain information to reduce information asymmetry between management and stakeholders (investors, consumers and society). In the context of Islamic Corporate Social Responsibility (ICSR), the application of sharia principles such as fairness, transparency and balance can be a positive signal to the market [5].

Research [5, 6-13] states that Islamic Corporate Social Responsibility (ICSR) has an effect on financial performance. Based on this explanation, the researcher proposes the following hypothesis:

H1: Islamic Corporate Social Responsibility (ICSR) has a positive effect on financial performance

Signal theory explains that the implementation of Islamic Corporate Governance provides a positive signal to the market, which has an impact on increasing investor confidence, reducing capital costs and risks, increasing profitability and operational efficiency [9].

Research [5, 6-13] states that Islamic Corporate Governance (ICG) has an effect on financial performance. Based on this explanation, the researcher proposes the following hypothesis:

H2: Islamic Corporate Governance (ICG) has a positive effect on financial performance

Based on signal theory, the implementation of Islamic Corporate Social Responsibility (ICSR) provides a positive signal that can increase company value by improving reputation and investor trust, reducing risk and cost of capital, increasing profitability through consumer loyalty and operational efficiency [10].

Research [5, 6-13] states that Islamic Corporate Social Responsibility (ICSR) has an effect on company value. Based on this explanation, the researcher proposes the following hypothesis:

H3: Islamic Corporate Social Responsibility (ICSR) has a positive influence on company value

Based on signal theory, the implementation of Islamic Corporate Governance (ICG) provides a positive signal that can increase the company's value by improving the reputation and trust of investors, reducing risk and capital costs, increasing profitability through operational efficiency and reducing legal risk [6].

Research [5,7-13] states that Islamic Corporate Governance (ICG) has an effect on company value. Based on this explanation, the researcher proposes the following hypothesis:

H4: Islamic Corporate Governance (ICG) has a positive influence on company value

Based on signal theory, good financial performance provides a positive signal that can increase the company's value by increasing investor confidence through profitability and stability signals. Lowering risk and cost of capital because it is considered to have strong fundamentals. Increasing reputation and attractiveness for institutional and retail investors [14].

Research [5, 6-13] states that financial performance affects company value. Based on this explanation, the researcher proposes the following hypothesis:

H5:         Financial performance has a positive effect on company value

The population in this study is the annual reports of companies listed on JII and related company websites as secondary data sources. Using purposive sampling techniques to select samples from manufacturing companies listed on JII. The criteria for the research sample are companies listed on JII that are consistently listed in the period 2020-2024, Companies listed on JII publish Annual Reports in the period 2020-2024, Companies listed on JII that provide complete information related to research variables. The data analysis method used is Path Analysis.

Hasil

After analyzing the data of 150 research data, the next stage is to process the descriptive statistical data of the research variables. The results of processing the descriptive statistical data of the research variables are shown in Table 1.

Based on the analysis results in Table 1, it can be seen that the ICSR variable shows an average value (mean) of 0.56. The lowest value of the ICSR variable is 0.26 and the highest value is 0.91. The standard deviation is 0.19. This means that the standard deviation value is approaching the average value (mean) and the size of the data distribution is getting smaller.

Based on the analysis results in Table 1, it can be seen that the ICG variable shows an average value (mean) of 0.23. The lowest value of the ICG variable is 0.19 and the highest value is 0.38. The standard deviation is 0.04. This means that the standard deviation value is approaching the average value (mean) and the size of the data distribution is getting smaller. 

Based on the analysis results in Table 1, it can be seen that the Financial Performance variable shows an average value (mean) of 0.06. The lowest value of the Financial Performance variable is 0.01 and the highest value is 0.38. The standard deviation is 0.07. This means that the standard deviation value is approaching the average value (mean) and the size of the data distribution is getting smaller. 

Based on the analysis results in Table 1, it can be seen that for the Company Value variable, the average value (mean) is 2.01. The lowest value of the Company Value variable is 0.01 and the highest value is 7.84. The standard deviation is 1.92. This means that the standard deviation value is approaching the average value (mean) and the size of the data distribution is getting smaller. 

Table 1: Descriptive Statistics Results

Source: Processed data, 2025

Table 2: t Test Results

 Source: Processed data, 2025

In this study, the level of significance used is 5% (0.05). Thus, if the level of significance is more than 0.05 and the calculated t value is greater than the table, then H0 is rejected and Ha is accepted, which indicates that there is a significant influence between the independent variable and its dependent variable. Conversely, if the level of significance is less than 0.05 and the calculated t value is less than tt, then H0 is rejected and Ha is accepted.

The results of the t test are as follows:

Based on Table 2, the magnitude of the influence of each independent variable on the dependent variable can be seen as follows:

ICSR (X1) on Financial Performance Variable (Z)

Based on Table 2, it can be seen that the level of significance (α) of the ICSR variable (X1) is 0.000 <0.05. This means that ICSR has a significant effect on Financial Performance.

ICG (X2) on Financial Performance Variable (Z)

Based on Table 2, it can be seen that the level of significance (α) of the ICG variable (X2) is 0.002 <0.05. This means that ICG has a significant effect on Financial Performance.

ICSR (X1) on the Company Value Variable (Y)

Based on Table 2, it can be seen that the level of significance (α) of the ICSR variable (X1) is 0.002 <0.05. This means that ICSR has a significant effect on Company Value.

ICG (X2) on Communication Skills Variable (Y)

Based on Table 2, it can be seen that the level of significance (α) of the ICG variable (X2) is 0.003 <0.05. This means that ICG has a significant effect on Company Value.

Financial Performance (Z) AGAINST the Company Value Variable (Y)

Based on Table 2, it can be seen that the level of significance (α) of the Financial Performance variable (Z) is 0.040 <0.05. This means that Financial Performance has a significant effect on Company Value.

The Impact of ICSR on Financial Performance

The results of the path analysis on the t-test on the first hypothesis (H1) show that ICSR has an effect on Financial Performance by looking at its significance level of 0.000. The relationship indicated by the regression coefficient is positive, meaning that the higher the ICSR, the higher the Financial Performance will be (H1 is accepted).

Signaling Theory explains how companies use certain information to reduce information asymmetry between management and stakeholders (investors, consumers and society). In the context of Islamic Corporate Social Responsibility (ICSR), the implementation of sharia principles such as fairness, transparency and balance can be a positive signal to the market. ICSR is not only a moral obligation, but also an effective business strategy in improving the company's financial performance in accordance with Islamic principles [5].

The results of this study are in line with previous studies conducted by [5, 6-13] stating that Islamic Corporate Social Responsibility (ICSR) has an effect on financial performance.

The Impact of ICG on Financial Performance

The results of the path analysis on the t-test on the second hypothesis (H2) show that ICG has an effect on Financial Performance by looking at its significance level of 0.002. The relationship indicated by the regression coefficient is positive, meaning that the higher the ICG, the higher the Financial Performance will be (H2 is accepted).

Signal theory explains that the implementation of Islamic Corporate Governance provides a positive signal to the market, which has an impact on increasing investor confidence, reducing the cost of capital and risk, increasing profitability and operational efficiency. Thus, Islamic Corporate Governance is not only a moral obligation but also an effective business strategy to improve the company's financial performance in accordance with Islamic principles. The existence of a Sharia Supervisory Board and accountability mechanisms reduces the risk that management will act in personal interests. Reducing conflicts of interest and ensuring that business decisions are in line with the interests of shareholders [9].

The results of this study are in line with previous studies conducted by [5, 6-13] stating that Islamic Corporate Governance (ICG) has an effect on financial performance.

The Influence of ICSR on Company Value

The results of the path analysis on the t-test on the third hypothesis (H3) show that ICSR has an effect on Company Value by looking at its significance level of 0.002. The relationship indicated by the regression coefficient is positive, meaning that the higher the ICSR, the Company Value will increase (H3 is accepted). 

Based on signal theory, the implementation of Islamic Corporate Social Responsibility (ICSR) provides a positive signal that can increase the value of the company by improving the reputation and trust of investors, reducing risk and cost of capital, increasing profitability through consumer loyalty and operational efficiency. In other words, ICSR is not only about fulfilling moral or sharia obligations, but also an effective business strategy to increase the value of the company in the eyes of investors and stakeholders. Good ICSR serves as a signal that the company is not only seeking short-term profits, but also has a commitment to sustainability and social responsibility in accordance with sharia principles [10].

The results of this study are in line with previous studies conducted by [5, 6-13] stating that Islamic Corporate Social Responsibility (ICSR) has an effect on company value.

The Influence of ICG on Company Value

The results of the path analysis on the t-test on the fourth hypothesis (H4) show that ICG has an effect on Company Value by looking at its significance level of 0.003. The relationship indicated by the regression coefficient is positive, meaning that the higher the ICG, the Company Value will increase (H4 is accepted). 

Based on signal theory, the implementation of Islamic Corporate Governance (ICG) provides a positive signal that can increase the company's value by improving the reputation and trust of investors, reducing risk and cost of capital, increasing profitability through operational efficiency and reducing legal risk. Thus, ICG is not only a moral obligation but also an effective business strategy to increase the company's value in accordance with Islamic principles. Good ICG serves as a signal that the company is not only seeking short-term profits, but also has a commitment to sustainability and social responsibility in accordance with sharia principles [6].

The results of this study are in line with previous studies conducted by [5,11-13] stating that Islamic Corporate Governance (ICG) has an effect on company value.

The Influence of Financial Performance on Company Value

The results of the path analysis on the t-test on the fifth hypothesis (H5) show that Financial Performance has an effect on Company Value by looking at its significance level of 0.040. The relationship indicated by the regression coefficient is positive, meaning that the higher the Financial Performance, the Company Value will increase (H5 is accepted).

Based on signal theory, good financial performance provides a positive signal that can increase the company's value by increasing investor confidence through profitability and stability signals. Reduce risk and cost of capital because it is considered to have strong fundamentals. Increase reputation and attractiveness for institutional and retail investors. Thus, financial performance is not only an internal measure, but also an external signal that greatly influences the company's value. Financial reports that show positive performance serve as a signal that the company is well managed. Increased investor confidence has the potential to drive higher demand for shares, increasing share prices and company value [14].

The results of this study are in line with previous studies conducted by [5, 11-13] stating that financial performance affects company value.

The results of the path test on the influence of ICSR on Financial Performance show a significant positive influence. This proves that high ICSR will improve Financial Performance.

The results of the path test on the influence of ICG on Financial Performance show a significant positive influence. This proves that high ICSR will improve Financial Performance.

The results of the path test on the influence of ICSR on Company Value show a significant positive influence. This proves that high ICSR will increase Company Value.

The results of the path test on the influence of ICG on Company Value show a significant positive influence. This proves that high ICG will increase Company Value.

The results of the path test on the influence of Financial Performance on Company Value show a significant positive influence. This proves that high Financial Performance will increase Company Value.

Suggestion

Further research is expected to add other variables that can mediate Company Value, such as investor trust, so that it can have a greater influence on Company Value.

For further researchers, it is expected to expand the research objects by conducting research other than the Jakarta Islamic Index, such as on JII 70 or other ISSI.

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