The Effect of Good Corporate Governance on Firm Value with Profitability as Moderator in Food and Beverage Companies Listed on the IDX

Cokorda Istri Widya Suari (Universitas Mataram)
G.A. Sri Oktaryani (Universitas Mataram)

Formosa Journal of Applied Sciences (FJAS)
Vol. 4 No. 5 (2025): May 2025

The sector's improved performance has attracted investor interest, especially amidst changes in consumption behavior due to the Covid-19 pandemic, which has led to increased demand for key consumer goods. This data variability suggests the need for additional moderating variables to explain the relationship between GCG and firm value.  This study seeks to examine the impact of GCG, represented by KM and KI variables, on firm value, by including profitability as a moderating variable. The sample was selected using purposive sampling, resulting in 27 companies out of a total of 71 companies, yielding 81 observations for analysis. Data analysis includes simple linear regression and Moderated Regression Analysis (MRA). The findings show that managerial ownership has a significant positive effect, institutional ownership has a significant negative effect, and profitability does not moderate their relationship to firm value.