Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020)

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The Impact of Corporate Governance Mechanism on Company Value of Those Listed on the Jakarta Islamic Index (JII): The Involvement of Financial Performance Moderating Role

Authors
Satrio Aji Pamungkas, Muhammad Muflih
Corresponding Author
Muhammad Muflih
Available Online 22 December 2020.
DOI
10.2991/aer.k.201221.089How to use a DOI?
Keywords
Corporate Governance Mechanism, Financial Performance, Corporate Value
Abstract

This study aims to identify the impact of Corporate Governance mechanism (proxied by independent commissioner, managerial ownership, and institutional ownership) on Company Value (proxied by Tobin’s Q), and how Financial Performance (proxied by Return on Asset, ROA) moderates the relationship. This study employed 67 samples of go public companies listed on the Jakarta Islamic Index (JII) from 2014 to 2018. The samples were chosen by purposes sampling technique. Path analysis using PLS-SEM (Partial Least Square Structural Equation Modelling) with the 6.0 version of WarpPls was used as a statistical analysis of data. The results show that independent commissioner (KomIn) has a significant negative impact on company value (Tobin’s Q), managerial ownership (KepMan) has an insignificant negative impact on Tobin’s Q, and institutional ownership (KepIn) has a significant positive impact on Tobin’s Q. Financial performance (ROA) positively moderates (strengthens) the significant impact of independent commissioner on Tobin’s Q, negatively moderates (weakens) the significant impact of managerial ownership on Tobin’s Q, and also negatively moderates (weakens) the significant impact of institutional ownership on Tobin’s Q.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020)
Series
Advances in Engineering Research
Publication Date
22 December 2020
ISBN
978-94-6239-307-3
ISSN
2352-5401
DOI
10.2991/aer.k.201221.089How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Satrio Aji Pamungkas
AU  - Muhammad Muflih
PY  - 2020
DA  - 2020/12/22
TI  - The Impact of Corporate Governance Mechanism on Company Value of Those Listed on the Jakarta Islamic Index (JII): The Involvement of Financial Performance Moderating Role
BT  - Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020)
PB  - Atlantis Press
SP  - 537
EP  - 544
SN  - 2352-5401
UR  - https://doi.org/10.2991/aer.k.201221.089
DO  - 10.2991/aer.k.201221.089
ID  - Pamungkas2020
ER  -