The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance

Ridwan, Nurazi; Zoraya, Intan; Wiardi, Akram Harmoni

doi:10.24856/mem.v35i2.1554

Cited by 16 publications

(12 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Nurazi et al believed that the heterogeneity of institutional investors has different effects on corporate governance. Pressure-sensitive institutional investors have a negative correlation with corporate performance and have no significant relationship with executive compensation [ 11 ]. Siddiqui and Singh tested the correlation between institutional investors and corporate social responsibility through a panel data model and reached the following conclusions: institutional investors' shareholding is significantly positively correlated with the contribution rate of government income and social income, and institutional investors prefer to invest in companies that undertake government and social responsibility [ 12 ].…”

Section: Literature Reviewmentioning

confidence: 99%

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

Sheng

2022

Journal of Environmental and Public Health

View full text Add to dashboard Cite

In order to give full play to the role of field research of legal psychology institutional investors in promoting enterprise environmental governance, this article puts forward the research on how legal Psychology institutional investors affect the corporate governance environment. Taking the listed companies in the A-share heavy pollution industry of Shenzhen Stock Exchange from 2018 to 2021 as a sample, this article tests the impact and action mechanism of legal Psychology institutional investors’ field research on corporate environmental governance. Hypothesis 1: the field research of legal Psychology institutional investors can promote the environmental governance of enterprises. Hypothesis 2: for enterprises with poor environmental information disclosure, the impact of field research of legal Psychology institutional investors on enterprise environmental governance is more obvious. Hypothesis 3: for enterprises with more concentrated distribution, the impact of field research of legal Psychology institutional investors on enterprise environmental governance is more obvious. Leadership power has the three attributes of management, social psychology, and law, and its essence is the socialization of legal psychology. Under the perspective of legal psychology, the psychological mechanism of leadership power is mainly manifested in three aspects: increasing the social distance, activating the approach system, and inducing the control illusion. The cumulative number of field investigations conducted by the enterprise in the current year +1 is adopted, and the logarithm is taken as the measurement index of the field investigation of legal Psychology institutional investors, which is expressed by Investigate. In the robustness test part, the virtual variables are set by whether the enterprise is investigated in the field in that year. The results show that in uncontrolled years and industries, the regression coefficients of legal Psychology institutional investor investigation and enterprise environmental protection capital investment are 0.0703 and 0.2416, respectively, which are significant at the level of 5%. After controlling the year and industry, the regression results show that the field investigation of legal Psychology institutional investors and enterprise environmental capital investment are still positive, significantly at the level of 5% and 1%, respectively. The environmental capital investment of enterprises with poor environmental information disclosure (0.479 and 1.161) is higher than that of enterprises with good environmental information disclosure (0.252 and 0.618), and the mean t-test maintains the significance level of 1%, indicating that the impact of field research on enterprise environmental governance is more obvious in enterprises with poor environmental information disclosure, which preliminarily verifies Hypothesis 2 of this article. Similarly, when the distribution of enterprises is more concentrated, the environmental capital investment of enterprises is 0.536 and 1.286, which is higher than that of enterprises with a more dispersed distribution (0.315 and 0.778) and maintains a significant level of 1%. The results show that obtaining environmental information is helpful for stakeholders to supervise enterprise environmental governance. Therefore, we should formulate and issue policies and regulations that require enterprises to disclose environmental information as soon as possible, improve the standards of environmental information disclosure, establish an enterprise environmental information disclosure platform, and improve the level and quality of environmental information disclosure.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

Sheng

2022

Journal of Environmental and Public Health

View full text Add to dashboard Cite

show abstract

“…Company performance can be interpreted as a form of achievement from the company in financial aspects related to income, costs, debt structure, assets, and return on investment (Devi et al, 2020). Company performance is also a reflection of the financial condition of the company where this information is usually used by investors to make decisions (Nuraz et al, 2020). According to Maulidar & Majid (2020) the performance of a company can show the company's ability to allocate and manage existing resources in order to improve performance and compete with its competitors.…”

Section: Firm Performancementioning

confidence: 99%

The Impact of Risk Management on Firm Performance: Corporate Governance as Moderating Variable

Naibaho

Mayayogini

2023

mem

View full text Add to dashboard Cite

This research aims to examine the impact of risk management, especially operational risk, credit risk, and liquidity risk on firm performance with corporate governance as a moderating variable. The research was conducted using secondary data from 48 companies in the Southeast Asia region which are included in the Consumer Durable and Apparel, Consumer Service, and Consumer Staples industry categories at S&P Capital IQ during the 2017-2021 period. The sample collection technique in this study used a purposive random sampling method. The result of this study finds that operational risk and credit risk do not affect firm performance, while credit risk has a negative effect on firm performance. This study also found that corporate governance can reduce the negative effect of liquidity risk on firm performance but strengthen the relationship between operational risk and credit risk on firm performance. The result found in this study has implications and contribution for the company to develop a good corporate governance in order to maximize the risk management and also for investor to assess the company risks.

show abstract

“…Financial performance is an indicator to evaluate the company's financial condition by measuring the company's ability to generate profits (Nurazi, Zoraya and Wiardi, 2020). Financial capability is a reflection of the level of gain from the company's operational activities when realizing the goals, vision, and mission of a company (Wulandari & Widyawati, 2019).…”

Section: Financial Performancementioning

confidence: 99%

Moderate Impact of Good Corporate Governance in Financial Performance on Firm Value

Pamungkas

2022

J. Accounting

View full text Add to dashboard Cite

This research examines the effect of the firm value, managerial ownership and institutional ownership as moderating variables to moderate the relationship of financial performance to the firm value. This research population uses properties and real estate sector companies listed on the Indonesia Stock Exchange for the period 2017-2020 with a total sample of 193. This type of research is a quantitative research using secondary data. The study used Warp-PLS analysis tool version 7.0. Sampling techniques use purposive sampling that aims to obtain samples that fit the criteria set by the author. Financial performance has no effect on the value of properties and real estate sector companies for the period 2017-2020. The results of this study found that managerial ownership is not able to moderate the relationship between financial performance to the value of the company. However, institutional ownership can moderate financial performance against the firm value in the properties and real estate sectors for the period 2017-2020. Suggestions for further researchers to be able to add other variables that affect the value of the company, using other aspects such as profitability in measuring financial performance. Further researchers can also expand or use research objects other than the properties and real estate sectors to discover the results of different studies.

show abstract

The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance

Cited by 16 publications

References 3 publications

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

The Impact of Risk Management on Firm Performance: Corporate Governance as Moderating Variable

Moderate Impact of Good Corporate Governance in Financial Performance on Firm Value

Contact Info

Product

Resources

About