Determining the Factors Can Influence the Firm Value: To Create Good Corporate Governance

Abstract

This study aims to analyze the influence of earnings management, capital structure, and accounting conservatism with managerial ownership as a moderating variable. Earnings management is measured using the modified Jones model, the capital structure is proxied by the Dept to Equity Ratio (DER), accounting conservatism is calculated by the difference between the company's net profit and operating cash flow divided by total assets. Company value is proxied by the Tobin's ratio, and managerial ownership is calculated by the total management shareholding divided by the number of outstanding shares. This research is a quantitative study with a population of 159 companies and the number of samples used is 90 samples from 30 company data obtained through purposive sampling method. Methods of data analysis using panel data regression techniques with Eviews software version 8. The result is that earnings management, capital structure, and accounting conservatism have no effect on firm value. Managerial ownership is not able to moderate the effect of earnings management, capital structure, and accounting conservatism on firm value