Does Good Corporate Governance able to be a variable moderation
Corresponding Author(s) : Eny Maryanti
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
Introduction – Companies or industries in Indonesia that have not implemented the concept of Good Corporate Governance, as confirmed by a statement on the Chairman of the OJK Committee Wimboh Santoso, with the participation of two Indonesian emitters. However, Indonesia's achievement as ASEAN's top 50 for emissions in terms of good governance is still far behind various countries in Thailand, Singapore, the Philippines and Malaysia. Purpose – Based on the objectives in this study, among others, to determine the test results of how much the role of good corporate governance in moderating capital structure, company size, profitability on firm value. Methodology/Approach – In this study the method used is quantitative method. Sampling in this study used purposive sampling technique in determining a sample of 30 companies. The population is taken from data on consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021. The data analysis method used in this research is using Eviews. Findings – Capital structure and firm size has no effect on firm value, and profitability have effect on firm value. The moderating variable in this study is the first good corporate governance is not able to moderate the relationship between capital structure and firm size on firm value, while good corporate governance is able to moderate profitability on firm value. Originality/ Value/ Implication – This research is useful for companies to understand the importance of GCG in every company so that company performance in GCG practices will enable companies to develop healthy company operations and activities to maintain stakeholder trust.
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