Identification of Corporate Value Through the Good Corporate Governance Mechanism

Banking in Indonesia 2015-2018

DOI

10.2991/aebmr.k.210416.011How to use a DOI?

Keywords

Good Corporate Governance Mechanism, Firm Value, Tobin’s Q

Abstract

Developments in the financial sector in Indonesia, especially changes in the banking structure in Indonesia, are expected to provide positive changes for national finance. The existence of a corporate governance system can be an appropriate reference to be changed in a positive direction. Corporate governance that can be approved for increasing company value so that it attracts investors to invest. Corporate governance that is proxied by the board of directors, independent commissioners, managerial ownership, institutional ownership, audit board and audit quality on the value of the company proxied by Tobin’s Q. The population of this study is the banking companies that were questioned on the Indonesia Stock Exchange in the 2015-2018 period. The sample consisted of 17 companies selected by purposive sampling technique. Data analysis uses descriptive analysis and multiple linear regression. The results showed the partial board of directors (0.564), independent commissioners (0.487), managerial ownership (0.487), audit board (0.153) and audit quality (0.780) were not significant to the firm’s value (> 0.05) institutionally had a significant positive effect on the value company (0.042 <0.05). Simultaneously all of these variables do not oppose the value of the company with an F test value of 0.251> 0.05. Intended for companies to be more optimal in implementing GCG implementation not only discourse but actually implemented in order to get the company’s long-term benefits.

Copyright

© 2021, 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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TY  - CONF
AU  - Tatas Ridho Nugroho
AU  - Rini Armin
AU  - Marisha Khanida
PY  - 2021
DA  - 2021/04/19
TI  - Identification of Corporate Value Through the Good Corporate Governance Mechanism
BT  - Proceedings of the 7th Regional Accounting Conference (KRA 2020)
PB  - Atlantis Press
SP  - 76
EP  - 87
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210416.011
DO  - 10.2991/aebmr.k.210416.011
ID  - Nugroho2021
ER  -