International Journal of Economics, Management, Business, and Social Science
Vol. 4 No. 1 (2024): January 2024

Profitability And Firm Value: How Does Good Corporate Governance Affect Them?

Subiyanto, Bambang (Unknown)
Melati (Unknown)
Maulidya, Riska (Unknown)

Article Info

Publish Date
18 Jan 2024

Abstract

This research was aimed at analyzing the intervention of Good Corporate Governance (GCG) on the influence of profitability on firm value. GCG was proxied by the audit committee, profitability was proxied by the Return on Assets (ROA) and Return on Equity (ROE), while firm value was proxied by Tobin’s Q. The analysis will be carried out using path analysis with SmartPLS on 105 observations from 21 manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange (IDX) in the 2017–2021 period. The results showed that ROA, ROE, and GCG have a significant positive effect on firm value. GCG has also been proven to be able to significantly intervene in the influence of profitability on firm value, with a positive relationship to ROA and a negative relationship to ROE.

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Journal Info
International Journal of Economics, Management, Business, and Social Science
Website

Abbrev

ijembis

Publisher

CV ODIS

Subject

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

Description

International Journal of Economics, Management, Business, and Social Science (IJEMBIS) is a research journal in the discipline of economics, management, business and social science which is expected to contribute to a new or state-of-the-art for academic development or real-world applications, or ...