International Journal of Accounting & Finance in Asia Pasific
Vol 3, No 2 (2020): International Journal of Accounting & Finance in Asia Pasific (IJAFAP) June 2020

The Effect of Corporate Governance and Financial Health on The Value of Companies Registered in Indonesia Stock Exchange

Suaibatul Fitriyah (Accounting Department, State University of Malang, East Java Indonesia)
Makaryanawati Makaryanawati (Accounting Department, State University of Malang, East Java Indonesia)
Slamet Fauzan (Accounting Department, State University of Malang, East Java Indonesia)



Article Info

Publish Date
30 Jun 2020

Abstract

The main goal to be achieved by a company is to increase its value. Having high company value, the owners will gain higher prosperity. Company value is a particular condition achieved by a company reflected in the stock market price. Strategies to increase it are important. This study aims to determine the effect of corporate governance (X1) on company value (Y) and to determine conditions of financial health (X2) on company value (Y). This research is an associative type of hypothesis testing. Companies used in this study are those listed in the Indonesia Stock Exchange during the 2014-2017 period. The sample selections use purposive sampling with the criteria that the companies are CGPI participants and not engaged in finances with 29 companies as the samples. The analysis technique used is multiple regression. The results of the study show that: 1) good corporate governance does not affect the company value. 2) The condition of financial health has a positive effect on company value. The limitation in this study is the lack of research samples, because there are very few companies that participate in the CGPI ranking program. The results of this study are expected to be used as a reference for future researches, besides that research related to corporate governance should use measurements or other indicators to obtain different results.

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Journal Info

Abbrev

IJAFAP

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

IJAFAP aims to feature narrative, theoretical, and empirical-based research articles within the abovementioned fields. The journal welcomes articles relating to the current issues of financial decision making as well as its impact on society. IJAFAP carries out the mission to feature narrative, ...