This research objectives to determine the good
corporate governance effect toward the firm value
mediated by the bank soundness ratio. This research
became performed on commercial bank companies which
registered on the Indonesia capital market (IDX) between
2017-2021. The sampling method using the purposive
sampling. The sample used was 175 data from 35
commercial bank companies. The panel regression
analysis as data analysis technique consisting of 3
variables, specifically the dependent, the independent,
and the intervening variable. The outcomes of this
research indicated that the good corporate governance
affected significantly toward the capital adequacy, the
non-performing loan, the return on asset, and the firm
value. However, good corporate governance does not
affect toward a loan to deposit. The capital adequacy, and
the non-performingloan affect the firm value. However,
the return on asset and loan to deposit does not affect
toward firm value. Furthermore, only the capital
adequacy which able to mediate the good corporate
governance effect toward the firm value. However, the
non-performing loan, the return on asset, and the loan to
deposit ratio are unable to mediate the good corporate
governance effect toward firm value.
Keywords :
Capital Adequacy, Firm Value, Good Corporate Governance, Loan to Deposit, Non-Performing Loan, Return on Asset.