The Effect of Good Corporate Governance Mechanism and Financial Performance on Firm Value of Banking Sector Listed on Indonesia Stock Exchange (BEI) P


Authors : Ari Wahyu Leksono, Rendika Vhalery.

Volume/Issue : Volume 3 - 2018, Issue 9 - September

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://goo.gl/ETr4Ns

Thomson Reuters ResearcherID : https://goo.gl/KTXLC3

Abstract : This study aims to determine the effect of Good Corporate Governance mechanism and Financial Performance on firm value in banking companies. The method used in this research is research method of descriptive associative. The analytical tool used is multiple linear regressions, processed by using SPSS program version 23. The results obtained are partially there is a negative influence of Good Corporate Governance mechanism (independent board of commissioner, institutional ownership, and audit committee) on the value of the company and there is positive influence profitability (ROE) on firm value. While simultaneously, there is influence together mechanism of Good Corporate Governance and profitability to company value. The suggestion is that companies should consider the implementation of Good Corporate Governance and to measure the company’s financial performance can use other measurements such as ROA and NPM. While to measure the company’s value can also use other measurements such as Price Earnings Ratio (PER) or Tobin’s Q.

Keywords : Good Corporate Governance, Profitability, Firm Value.

This study aims to determine the effect of Good Corporate Governance mechanism and Financial Performance on firm value in banking companies. The method used in this research is research method of descriptive associative. The analytical tool used is multiple linear regressions, processed by using SPSS program version 23. The results obtained are partially there is a negative influence of Good Corporate Governance mechanism (independent board of commissioner, institutional ownership, and audit committee) on the value of the company and there is positive influence profitability (ROE) on firm value. While simultaneously, there is influence together mechanism of Good Corporate Governance and profitability to company value. The suggestion is that companies should consider the implementation of Good Corporate Governance and to measure the company’s financial performance can use other measurements such as ROA and NPM. While to measure the company’s value can also use other measurements such as Price Earnings Ratio (PER) or Tobin’s Q.

Keywords : Good Corporate Governance, Profitability, Firm Value.

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