Indicators : Journal of Economic and Business
Vol 3, No 2 (2021): November

The Effect of Corporate Governance on Firm Performance

Harjum Muharam (Department of Management, Faculty of Economics and Business, Universitas Diponegoro, Indonesia)
Nirmala Luthfiya Atyanta (Department of Management, Faculty of Economics and Business, Universitas Diponegoro, Indonesia)



Article Info

Publish Date
13 Nov 2021

Abstract

This study aims to analyze the effect of corporate governance mechanisms on firm performance. The sample used in this study were companies listed on the Indonesia Stock Exchange (IDX) during the period of 2016 to 2019. The number of samples used in this study was 100 samples. The sampling technique used is purposive sampling method. The research data was obtained from the company’s annual report. This study uses multiple regression analysis method which operated through data processing program IBM SPSS Statistics 25. The results of this study showed that the proportion of independent commissioner, audit committee, and institutional ownership had a positive and significant effect on Adjusted Tobin’s Q. Meanwhile, size of board of directors and managerial ownership found to had no effect on Adjusted Tobin’s Q. Firm size and firm age as control variables found to had a positive effect on Adjusted Tobin’s Q, while leverage found to had no effect on Adjusted Tobin’s Q.

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Journal Info

Abbrev

jebis

Publisher

Subject

Economics, Econometrics & Finance Environmental Science Social Sciences

Description

INDICATORS economics, management, bussiness, and acounting, economic development and social change, using theoretical and empirical approaches that examine both determinants and effects of various dimensions of economics, management, bussiness, and acounting, economic development and social change. ...