Research Article
The Influence of Corporate Governance Mechanisms And Return On Assets On Firm Value
@INPROCEEDINGS{10.4108/eai.26-3-2019.2290690, author={Garin Pratiwi Solihati and Riaty Handayanti and Tri Aji Kurniawan}, title={The Influence of Corporate Governance Mechanisms And Return On Assets On Firm Value}, proceedings={Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ACEBISS}, year={2020}, month={2}, keywords={institutional ownership managerial ownership number of audit committee meetings return on assets tobin's q}, doi={10.4108/eai.26-3-2019.2290690} }- Garin Pratiwi Solihati
Riaty Handayanti
Tri Aji Kurniawan
Year: 2020
The Influence of Corporate Governance Mechanisms And Return On Assets On Firm Value
ACEBISS
EAI
DOI: 10.4108/eai.26-3-2019.2290690
Abstract
This study aims to determine the effect of good corporate governance and return on assets on firm value. The object of this research is the consumer goods manufacturing sector listed on the Indonesia Stock Exchange in 2013-2017. This study uses a purposive sampling method that is sourced from the financial report, annual report, and annual closing stock prices of 24 sample companies that meet the requirements to be studied and analyzed using panel data regression with the help of eViews 9 program. The dependent variable in this study is the firm value that is proxied by tobin's q, and the independent variable in this study is good corporate governance that is proxied by institutional ownership, managerial ownership, and the number of audit committee meetings. The results of this study shows that only institutional ownership, managerial ownership, and ROA variables have a significant positive effect on tobin’s q, while the variable number of audit committee meetings has a negative effect not significant to tobin’s q. This is evidenced from the results of simultaneous tests (F-statistical tests) and partial test results (t-statistical tests).
