THE EFFECT OF BOARD OF DIRECTOR, AUDIT COMMITTEE, INSTITUTIONAL OWNERSHIP TO FIRM VALUE, WITH FIRM SIZE, FINANCIAL LEVERAGE AND INDUSTRIAL SECTOR AS CONTROL VARIABLES (Study on Listed Companies in Indonesian Stock Exchange Period 2011-2015)

Abstract

This study aims to examine the effect of corporate governance's mechanism to firm value which is proxied by Tobin's Q. This mechanism is divided into two, internal mechanism which is proxied by board of director and audit committee and external mechanism which is proxied by institutional ownership. This study is using control variables such as firm size, financial leverage and industrial sector. Sample used in this study are 40 companies which incorporated in several industrial sector in Indonesia which are listed in Indonesia Stock Exchange during [2011][2012][2013][2014][2015]. Hypothesis testing in this study is using multiple regression analysis.The result of this study shows that board of director has positive but insignificant effect to firm value in Indonesia, audit committee has positive and significant effect to firm value in Indonesia and institutional ownership has negative but insignificant effect to firm value in Indonesia. The control variables used in this study provide mixed results, where firm size has negative and insignificant effect to firm value, financial leverage has positive and significant effect to firm value and the whole industrial sector in Indonesia has no effect to firm value. From simultaneous test, this study shows that simultaneously independent variables significantly affect to firm value.

The Effect of Corporate Governance on Corporate Value: The Role of Enterprise Risk Management

“…It will also positively affect the corporate value. Thus, H1a is accepted, and this result is in sync with the research proposed by (Indriastuti & Kartika, 2021;Manu et al, 2019;Masitha & Djuminah, 2019;Samasta et al, 2018;Chairunesia & Sulistiyani, 2019). With the existence of ERM, that is able to moderate audit committee with corporate value.…”

“…However, it will look at company management and corporate value. Thus, H4a is rejected, and these results are in sync with the research that has been proposed by (Rahmadianti & Asandimitra, 2017;Chairunesia & Sulistiyani, 2019;Manurung et al 2019;Puspaninggiri, 2021;Samasta et al 2018;Farida et al 2019;Hertina et al 2021). In terms of moderation, institutional ownership and corporate value can not be moderated by ERM.…”

“…These results indicate that the board of directors is not significant to corporate value because the probability value is more than 0.05. Thus, H6a is rejected, and this result is in sync with the research proposed by (Samasta et al 2018;Arora & Sharma, 2016;Kritika & Choudhary, 2015;Alfaraih et al 2012). In terms of moderation, board of directors and corporate value can not be moderated by ERM.…”

Corporate Governance, Financial Ratio and Real Earnings Management in Indonesia Stock Exchange

“…Institutional ownership act, as they are the controller side and manage the organization. Viewed from the perspective of agency theory, institutional ownership that is a big shareholder tends to be alert to agency problems because with large investments they will more closely supervise the actions of management (Samasta, Muharam, & Haryanto, 2018).…”

Determinan Nilai Perusahaan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia

“…Ketiga, studi Perdana & Raharja (2014) dan Samasta et al (2018) mendapati bahwa komite audit mampu memberi pengaruh positif dalam menentukan nilai perusahaan. Komite audit dinilai bisa mendukung dewan komisaris ketika melaksanakan pengawasan dan proses pelaporan keuangan.…”