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Journal : IQTISHODUNA

Good Corporate Governance Characteristic, Profitability and Firm Value: Evidence from Indonesia Dwi Susilowati; Nurlia Nurlia; Juwari Juwari
IQTISHODUNA IQTISHODUNA (VOL.18, No.2, 2022)
Publisher : Fakultas Ekonomi, UIN Maliki Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (378.024 KB) | DOI: 10.18860/iq.v18i2.17056

Abstract

This research aims to test the influence of good corporate governance (independent commissioners, institutional ownership, board of directors, and audit committees) and profitability on the firm value. This research was conducted because of the low GCG implementation in Indonesia. This study used multiple linear regression to test the influence between variables and Sobel tests to determine the mediation effect of profitability. The research was conducted on companies registered in LQ45 for the years 2015-2019. The data used in the study was 245 data. The results showed that independent commissioners and audit committees had a negative effect, the board of directors had a positive effect, and institutional ownership did not affect profitability. Direct testing of GCG's influence on the firm values showed that independent commissioners had a negative effect, institutional ownership had a positive effect, and the board of directors and audit committee did not affect the firm value. The results also showed that profitability could mediate the influence of GCG on the firm value except for institutional ownership variables. Further research is expected to increase the number of samples and use different measurements of the firm. Companies need to improve GCG to increase management transparency so that investors and creditors can make appropriate decisions about the company.
Co-Authors Achmad Aminudin Alitha Gerhana Iriyanti Amelia Dwi Anita Andri Satria Wijaya Arfina Rahma Arrum Mustika Zulviani Awaludin Rauf Firmansyah Azizil Yudaruddin, Yanzil C. Prihandoyo Chairunnisa Al Wardah Chinta Noviadinda Christine April Dayanti Sitinjak Deanisa Putri Adinda Della Ananda Lesmana, Siti Desti Dwi Chayati Dhita Septianti Khairunisa Didik Hadiyatno Dika Karlida Sari Dika Karlinda Sari Dimas Rama Pramudia Dwi Susil;owati Dwi Susilowati Dwi Susilowati Dwi Taufik Rohman Eva Fidriani Firdaus, Muhammad Dzaky Ganjar Susilo Hairul Anam Hakun Wirawasista Hendrawan, Yudhi Herlina Agustina Hernadi Moorcy, Nadi Hesti Rahayu Indriana Purwaningsih Irfan Abdillah irvan Nurhakimi Istiqamah Istiqamah Karina Asih, Janet Karlinda Sari , Dika Kurniawan, Ahmad Misfa Kurniawan, Avip Lailatul Qadariyah Maritha, Vevi Mayana Asid, Gatik Miswaty Miswaty Mochammad Ainun Hikam Mohammad Fandy Ardhilla Muhammad Frisna Firmansyah Nadi Hernadi Moorcy Nesaputro, Muhammad Wahyue Nina Indriastuty Novianti, Putri Ramadya Nur Amelia Nur Azizah Nur Ihda Farikhatin Nisa Nur Sa’diyah Nur Shakinah Nurlia Nurlia Nurlia Nurlia Nurlia Nurlia Nurlia Pangestu, Ari Pujangga Prasongko, Agung Priamay Sella, Ega Raden Darmawan Rahajeng Cahyaning Putri Cipto Ramadhani, Ranita Ranita Ramadhani Revisa Putri Syahrani Riska Amelia Risnawati Risnawati Rizqa Nurul Surayya Sendianti Pati Setiyo Gunawan Setyo Warsito Purwo Duksino Siti Della Ananda Lesmana Sudjinan Sudjinan Sudjinan, Sudjinan Sudjinan, Sudjinan Suherna Suherna Sukimin Sukimin Tamzil Yusuf Taufik Rohman, Dwi Ting Anita Salim Tsabitah Mappangara Umi Kulsum Vicram Ramadhan Wiwik Saraswati, Wiwik Yanzil Azizil Yudaruddin