Corporate Governance and Financial Performance on Firm Value: The Case of Indonesia

Pamungkas, Imang Dapit; Purwantoro, Purwantoro; Sari, Maylia Pramono; Hersugondo, Hersugondo

doi:10.37394/23207.2023.20.10

Cited by 10 publications

(5 citation statements)

References 48 publications

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“…First, it contributes by including 625 top large, listed companies across six OECD stock markets, thus considering a substantial sample size. In contrast, previous studies [13,14] have focused on limited samples from a single country. Secondly, previous studies [15,16] have called for further research to better understand the ambiguous role of corporate governance attributes in financial performance.…”

Section: Introductionmentioning

confidence: 93%

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

Hamad

Çek

2023

Sustainability

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This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries’ stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries’ listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France’s code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.

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Section: Introductionmentioning

confidence: 93%

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

Hamad

Çek

2023

Sustainability

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“…Every company wants to achieve high company value because this is an indicator of a well-developed company that will attract investors. Increasing company value is the main goal of company management, but this cannot be achieved without maximum effort from all aspects of the company [1]. High company value is also a reflection of investor confidence in the company.…”

Section: Research Backgroundmentioning

confidence: 99%

Capital Structure, Financial Performance, and Macroeconomic Conditions: Evidence From Indonesia Stock Exchange

Febrianti,

Mustaruddin,

Afifah

2024

ajarcde

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his study aims to analyze the influence of capital structure, financial performance, and macroeconomic conditions on firm value (Tobin's Q) in companies included in the Kompas 100 index (100 companies with good liquidity and large market capitalization) listed on the Indonesia Stock Exchange between 2018 and 2022. A total of 50 companies with historical data for 5 years were analyzed amounting to 250 observational data. The data analysis method used is panel data regression analysis processed using Eviews software version 10. The results show that financial performance has a significant positive effect on firm value, and capital structure has a negative but not significant effect on firm value. Among the macroeconomic variables, inflation has a negative influence while interest rates have a positive influence, both of which are significant on firm value. However, GDP growth shows an influence that is not significant towards changes in firm value. The determinants of firm value are very complex thus each company needs to identify the key factors influencing them. It is recommended for further research to include corporate governance and firm growth variables.

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“…Temuan penelitian ini sesuai dengan penelitian sebelumnya (Nugraha et al, 2021) Yang menyatakan bahwa Dewan Komisaris Independen meningkatkan kinerja keuangan Perseroan. Namun, penelitian ini bertentangan dengan penelitian sebelumnya (Pamungkas., 2020) yang menyatakan bahwa dewan komisaris independen tidak berdampak pada penyelesaian keuangan perusahaan.…”

Section: Analisis Regresi Data Panelunclassified

The Effect of Good Corporate Governance on Financial Performance

Pranogyo,

Hendro,

Simanjuntak

2023

jambd

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The reason for this experimentation is to decide the consequence of proper agency governance on the financial standard overall accomplishment and feasibility of meals and beverage corporations indexed on the Indonesia stock trade (BEI) from 2015 to 2019. This finds out about hired quantitative studies to approach with linear regression analysis of panel data using SPSS 23 as the data analysis technique. This study's population protected all food and beverage groups indexed on the Indonesia inventory exchange between 2015 and 2019. To attain a sample of 20 organizations, the pattern was decided using the purposive sampling approach. The records series approach makes use of documentation received from the legitimate IDX website, www.idx.co.id. The outcomes of this discovery approximately finish that: (1) The unbiased board of commissioners and the audit committee have a giant impact on economic performance; however, the board of administrators has no big impact on monetary overall performance, based on the outcomes of a linear regression evaluation of panel records with a price stage of 5%. (2) it is possible to use a regression version to explain financial realization with the impartial board of commissioners, board of directors, and audit committee.

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Corporate Governance and Financial Performance on Firm Value: The Case of Indonesia

Cited by 10 publications

References 48 publications

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

Capital Structure, Financial Performance, and Macroeconomic Conditions: Evidence From Indonesia Stock Exchange

The Effect of Good Corporate Governance on Financial Performance

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