Implication of Corporate Governance and Financial Performance on Firm Value

2021 ◽  
Vol 5 (2) ◽  
pp. 81
Author(s):  
I Made Johan Wedia Putra ◽  
Seriwati Ginting
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Information Disclosure ◽  
Total Population ◽  
Financial Statements ◽  
Statistical Test ◽  
Descriptive Statistics ◽  
Public Companies ◽  
Outlier Data

<p>This study seeks to examine the implications of corporate governance and financial performance on firm value. The population selected are all companies that follow CGPI (Corporate Governance Preception Index) scoring held by IICG (The Indonesian Institute for Corporate Governance) in 2015-2018. Sampling of the research is purposive sampling with samples criteria are public companies participate in CGPI scoring and publish their financial statements on Indonesia Stock Exchange’s website or publish on the official website of respective companies. The total population followed CGPI score was 137 companies, 55 of those are public companies and 5 samples are outlier data. The statistical test used in this research were descriptive statistics analysis and multiple regression analysis. This research results in findings that both simultaneously and partially there are implications for corporate governance and financial performance to firm value. Therefore, the implementation of corporate governance and financial information disclosure in companies is fundamental to realizing firm value.</p>

scholarly journals Corporate Governance, Performance, and Financial Statements Publication as Moderation on Company Value in Indonesia

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Suwardi Bambang Hermanto ◽  
Ikhsan Budi Riharjo
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Audit Committees ◽  
Return On Assets ◽  
Public Companies ◽  
Company Value ◽  
And Performance

The research objective was to analyze the influence of corporate governance and performance, as well as the publication of financial statements as the moderation of company value. Institutional ownership variables, number of commissioners, number of directors, and number of audit committees and independent commissioners as corporate governance. Return on asset variables as performance, and audit delay as the publication of financial statements, and Tobin's Q as a company value. The research objects were 70 public companies on the Indonesia Stock Exchange, with a sample of 122 observations of financial statements from 2013-2017. The results showed that the number of commissioners, audit committees and return on assets had a positive effect on firm value. Publication of financial statements affects the value of the company, and moderates the effect of financial performance on firm value. Whereas institutional ownership, the number of directors and independent commissioners does not affect

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

Analisis Kinerja Keuangan Bank Aceh Setelah Konversi Periode 2016-2018 Berdasarkan Peraturan Otoritas Jasa Keuangan Nomor 8/POJK.03/2014

2019 ◽  
Vol 4 (1) ◽  
pp. 43
Author(s):  
Hanifa Assofia
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Islamic Law ◽  
Financial Statements ◽  
Risk Profile ◽  
Bank Capital ◽  
Collection Method ◽  
Descriptive Research ◽  
Good Corporate Governance ◽  
Quantitative Descriptive

<p>This research aims to find out how Bank Aceh's financial performance after conversion in terms of earnings and capital. The type of research used is quantitative descriptive research. The data collection method used is the documentation method based on the data in the form of quarterly financial statements for the 2016-2018 period published. The method of data analysis in this study is by using the RGEC method (Risk Profile, Good Corporate Governance, Earning and Capital). The results of the study show that Bank Aceh's financial performance in terms of profitability ranks 2, with the definition that profitability is adequate, profit exceeds the target and supports the growth of bank capital. Bank Aceh's decision to convert to sharia as a whole was a very appropriate decision because it was able to show good performance, besides that it also supported the Aceh Government in carrying out its programs to enforce Islamic law. Bank Aceh's financial performance in terms of capital also ranks 2, with the definition that banks have adequate capital quality and adequacy relative to their risk profile, which is accompanied by strong capital management in accordance with the characteristics, scale of business and the complexity of the bank's business.</p>

Implementasi Tata Kelola Perusahaan Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan di Indonesia

2016 ◽  
Vol 7 (2) ◽  
pp. 1-17
Author(s):  
Patricia Diana
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decision ◽  
International Market ◽  
Self Assessment ◽  
Result Show ◽  
Observation Period

Indonesia as one of developing countries should prepare for intense business competition in international market by continuously improving their financial performance which reflected by profitability enhancement. In order to achieved this goals, companies should build synergic relationship between stakeholders. Implementation of corporate governance is believed can assist companies in improving firm value by minimizing cost and maximize companies’ profit. This study aims to investigate the effect of corporate governance implementation on Indonesian companies. Corporate Governance Perception Index (CGPI) which establish by Indonesian Institute of Corporate Governance (IICG) used as proxy for corporate governance implementation, and ROA used as proxy for firm value. All the data obtain from Indonesia Stock Exchange (IDX) database and period 2008 to 2012 used as observation period. The result show that implementation of corporate governance has significant effect with firm value proxy by ROA. This study also concludes that market will be more concern on CGPI which generated through documentation and presentation indicators and also observation indicators rather than self-assessment indicators. This indicates that market would trust the information which comes from independen external parties. The result will be useful for investor in making their investment decision which based on profitability consideration. Keywords: Corporate Governance, CGPI, ROA, profitability

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

scholarly journals Mechanisms of corporate governance and performance: analysis of public companies listed in BM&FBovespa

2017 ◽  
Vol 16 (3) ◽  
pp. 1161-1184
Author(s):  
Josimar Pires Da Silva ◽  
Mariana Pereira Bonfim ◽  
Rafael Martins Noriller ◽  
Carlos Vicente Berner
Keyword(s):  
Corporate Governance ◽  
Performance Analysis ◽  
Financial Statements ◽  
Public Companies ◽  
The Public ◽  
Corporate Governance Mechanisms ◽  
The Government ◽  
And Performance ◽  
Future Reference

AbstractThe objective of this research is to verify the level of relationship between the mechanisms of corporate governance and the performance of the companies of the public subsector, listed on BM&FBovespa. The research was based on the financial statements from 2010 to 2014, obtained on the BM&FBovespa website, resulting in a sample of 63 companies with 315 observations. In order to calculate the performance proxy of the company, the ROA was used, and for the calculation of the proxies of the corporate governance mechanisms were used for the quality of the audit, the concentration of ownership in common shares and preferred shares, participation in the levels of governance of BM&FBovespa, number of shares held by the government and number of directors in the Board, adapted from the Mollah and Zaman (2015) survey. Convergence with national and international research, the findings of the study showed that such variables as quality of profit, concentration of ownership in preferred shares, participation in governance levels and size of the Board are positively related to the performance of the company; already a concentration of ownership in common shares and number of shares held by the government are negatively related to performance. For future reference, it is recommended to expand other sectors of the market as well as to use other mechanisms of corporate governance, presented in the literature.Keywords: Corporate Governance. Performance. Public Subsector.Mecanismos de governança corporativa e desempenho: análise das companhias do subsetor de utilidade pública listadas na BM&FBovespa Resumo O objetivo da pesquisa foi o de verificar o nível de relação entre os mecanismos de governança corporativa e o desempenho das empresas do subsetor de utilidade pública, listadas na BM&FBovespa. A pesquisa teve como base os dados das demonstrações financeiras de 2010 a 2014, obtidas no sítio eletrônico da BM&FBovespa, resultando assim, em uma amostra de 63 empresas, com 315 observações. Para o cálculo da proxy de desempenho da empresa foi utilizado o ROA, e para o cálculo das proxies dos mecanismos de governança corporativa foram utilizadas a qualidade da auditoria, concentração de propriedade em ações ordinárias e em ações preferenciais, participação nos níveis de governança da BM&FBovespa, número de ações mantidas pelo governo e número de diretores no Conselho, adaptado da pesquisa de Mollah e Zaman (2015). Convergente com pesquisas nacionais e internacionais, os achados desse estudo evidenciaram que as variáveis qualidade do lucro, concentração de propriedade em ações preferenciais, participação nos níveis de governança e tamanho do Conselho são positivamente relacionados com o desempenho da empresa; já a concentração de propriedade em ações ordinárias e o número de ações mantidas pelo governo são negativamente relacionadas com o desempenho. Para pesquisas futuras, recomenda-se ampliar a outros setores do mercado bem como utilizar outros mecanismos de governança corporativa, presentes na literatura.Palavras-chave: Governança Corporativa. Desempenho. Utilidade Pública.

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

2020 ◽  
Vol 35 (2) ◽  
pp. 230
Author(s):  
Ridwan Nurazi ◽  
Intan Zoraya ◽  
Akram Harmoni Wiardi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Value ◽  
Good Corporate Governance ◽  
The Impact

<pre>The objective of this study is empirically identify the impacts of Good Corporate Governance and capital structure on firm value with financial performance as intervening variable. We operate quantitative approach within the scope of manufacturing company of metal, chemical, and plastic packaging sector which listed in Indonesia Stock Exchange during the 2017-2018 periods as the population. Samples are chosen by purposive sampling method inwhich the company must report the financial statement in a row, obtained 79 observations. The data analysis technique used is financial ratio analysis to determine the condition of the business financial ratios of the variables studied. Data were analyzed using multiple linear regression analysis. The result shows that corporate governance and capital structure influence the firm value, moreover the use of institutional ownership ratio and capital structure will increase the value of the firm. The result also shows that the impact of Corporate governance and capital structure on the company value are mediated by financial performance. It means that the value of the firm can increase if the company able became an effective monitoring tool.</pre>

scholarly journals Corporate Social Responsibility Proposals and Firm Valuation

2021 ◽  
Vol 9 (3) ◽  
pp. 45
Author(s):  
Pyung Kun Chu
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Causal Effect ◽  
Firm Valuation ◽  
Public Companies ◽  
Shareholder Proposals ◽  
The Board Of Directors ◽  
Corporate Social

Corporate social responsibility (CSR) is a topic which has recently been attracting an increasing amount of attention with respect to corporate operations, and shareholder proposals on CSR are also one of the main types of proposals at firms’ annual shareholder meetings. However, even though the frequency of CSR proposals at annual meetings is comparable to other types of shareholder proposals, the approval rate of CSR proposals is significantly lower than that of other types of proposals, meaning that most CSR proposals are not recommended by the annual meeting to the board of directors for further approval. Motivated by this stylized fact, this study investigates the value of the submission of CSR shareholder proposals. Using a regression discontinuity design with shareholder proposal data of US public companies between 2006 and 2019, this study examines the importance of shareholders’ interest in CSR for firm valuation. Interestingly, while the CSR proposals themselves are typically not approved, the submission of CSR proposals by shareholders at annual meetings matters for the value impact of other types of shareholder proposals. More specifically, the causal effect of approving a corporate governance proposal on shareholder value is significantly positive only if the corporate governance proposal is voted together with a CSR proposal at the same meeting, i.e., the presence of CSR proposals is important for firm value through its interrelations with corporate governance proposals. This shows that the submission of CSR shareholder proposals has significant value implications, even if the CSR proposals themselves are not approved at annual meetings.

PENGARUH CORPORATE GOVERNANCE, KINERJA KEUANGAN,KEPEMILIKAN MANAJERIAL, UKURAN PERUSAHAAN TERHADAP KETEPATWAKTUAN PENYAMPAIAN LAPORAN KEUANGAN

2015 ◽  
Vol 11 (2) ◽  
pp. 107
Author(s):  
Kurniasih Jati Setyaningsih
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Control Variable ◽  
Secondary Data ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Control Variables ◽  
Before And After

; "> This study aimed to determine the effect of corporate governance, financial performance, managerialownership, the size of the company to the timeliness of financial reporting with the age of the firm asa control variable. Corporate governance is proxied by independent directors and audit committee,while the used financial performance ratios ROI. Company size used in this study using total assets.This study uses secondary data from ICMD and IDX. Of the 162 companies listed on the StockExchange, which can be used to study many as 100 companies by using logistic regression. Based onresearch that has been done before and after entering the control variables, it was found that theindependent commissioner, financial performance (ROI), firm size affects the timeliness of financialreporting. company’s age that is the control variables also affect the timeliness of financial reporting.Meanwhile the audit committee and managerial ownership does not affect the timeliness ofsubmission of financial statements. Thus it can be concluded that the larger and more long standingcompany, the more obedient to comply with regulations set by Bapepam.Keywords: corporate governance, financial performance, managerial ownership, company’s size,

scholarly journals Pengaruh Ukuran Perusahaan dan Profitabilitas pada Ketepatwaktuan Penyampaian Laporan Keuangan dengan GCG Sebagai Variabel Pemoderasi

2018 ◽  
pp. 525
Author(s):  
Gusti Ayu Putu Yasinta Darmawan ◽  
I Made Pande Dwiana Putra
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Participant Observation ◽  
Financial Statements ◽  
Financial Statement ◽  
Company Size ◽  
Moderator Variable ◽  
Public Companies ◽  
Good Corporate Governance ◽  
Timely Delivery

This study aims to prove empirically the influence of company size and profitability on timely delivery of financial statements with good corporate governance as a moderator variable. This study was conducted on non-financial public and go public companies listed in the 2011-2015 Corporate Governance Perception Index (CGPI) assessment. The method of determining the sample used is to use purposive sampling. The number of companies that meet the criteria is 9 companies with a total number of 43 observations. Data collection was done by non participant observation method. By using Multiple Regression Test and Moderated Regression Analysis (MRA), it was found that firm size did not affect the timeliness of financial statement submission but profitability had an effect on the timeliness of financial statement submission. The study also found that good corporate governance is not able to moderate the influence of firm size on the timeliness of financial statement submission but able to moderate by weakening the influence of profitability on timely delivery of financial statements Keywords:  Timeliness of Financial Report Submission, Company Size, Profitability, Good         Corporate Governance

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