Research Article
Corporate Governance and Firm Value: The Case of Non-Financial Company in Indonesia
@INPROCEEDINGS{10.4108/eai.26-9-2023.2350686, author={Yuli Soesetio and Dyah Arini Rudiningtyas}, title={Corporate Governance and Firm Value: The Case of Non-Financial Company in Indonesia}, proceedings={Proceedings of the 7th International Research Conference on Economics and Business, IRCEB 2023, 26 September 2023, Malang, East Java, Indonesia}, publisher={EAI}, proceedings_a={IRCEB}, year={2024}, month={11}, keywords={corporate governance non-financial company indonesia}, doi={10.4108/eai.26-9-2023.2350686} }- Yuli Soesetio
Dyah Arini Rudiningtyas
Year: 2024
Corporate Governance and Firm Value: The Case of Non-Financial Company in Indonesia
IRCEB
EAI
DOI: 10.4108/eai.26-9-2023.2350686
Abstract
This study aims to assess how various aspects of corporate governance specifically, foreign ownership, CEO duality, the presence of independent commissioners, and the size of the board of commissioners influence market performance or firm value. The research relies on secondary data from the IDX website, with a sample comprising 535 non-financial companies from 2009 to 2019, selected using purposive sampling. The analysis was conducted through a stepwise regression method. Findings reveal that foreign ownership does not significantly impact firm value, and the independent board of commissioners also shows no significant effect. However, CEO duality and the size of the board of commissioners are found to negatively impact firm value, while the presence of independent commissioners exerts a positive influence. Among the corporate governance mechanisms analyzed, independent commissioners are shown to positively affect firm value.
