The Impact of Governance on Corporate Value With Corporate Risk Management As Moderator

DOI

10.2991/978-2-38476-267-5_11How to use a DOI?

Keywords

Corporate Value; Corporate Governance; Corporate Risk Management

Abstract

This study aims to analyze the effect of corporate governance on company value by considering company risk management as moderation. In 2022, the technology sector on the Indonesia Stock Exchange experienced a significant decline of 42.61%, indicating serious challenges with the poor performance of startup companies after the IPO, emphasizing the need for resilience and increased corporate value in the face of competition for the future. Novelty: the corporate governance proxy which originally consisted of six variables, is now replaced by the Corporate Governance Index which includes nine categories reflecting relevant corporate governance structures, practices, and policies. This research is a type of descriptive quantitative research. The study population included technology companies listed on the Indonesia Stock Exchange between 2020 and 2022, with sample selection using the purposive sampling method, which resulted in 20 samples. The research data was obtained from the financial statements and annual reports of technology companies, and the analysis was carried out using the Random Effect Model (REM) with the help of E-Views 12 software. The results of the analysis show that corporate governance has a positive and significant effect on company value, while corporate risk management weakens the positive impact of corporate governance on company value. The implementation of good corporate governance creates a positive environment, increases corporate value, and provides long-term benefits. However, the complex integration between risk management and corporate governance can make it difficult to disclose information, confusing investors who tend to want a simpler approach. Since the selection of populations that are too small, for the next research, it is recommended to add multinational companies and industrial sectors that are rarely studied so that the research results are more representative and comprehensive.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Dyah Nirmala Arum Janie
AU  - Helyya Septiana
AU  - Nurcahyono Nurcahyono
PY  - 2024
DA  - 2024/07/18
TI  - The Impact of Governance on Corporate Value With Corporate Risk Management As Moderator
BT  - Proceedings of the 2nd Lawang Sewu International Symposium on Humanities and Social Sciences 2023 (LEWIS HUSO 2023)
PB  - Atlantis Press
SP  - 106
EP  - 121
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-267-5_11
DO  - 10.2991/978-2-38476-267-5_11
ID  - Janie2024
ER  -