Research Article
Mediation Role of Cost of Debt and Intellectual Capital on Corporate Governance and Firm Value: Evidence from Indonesia
@INPROCEEDINGS{10.4108/eai.6-12-2018.2286318, author={Kartika Hendra Titisari and Moeljadi Moeljadi and Kusuma Ratnawati and Nur Khusniyah Indrawati}, title={Mediation Role of Cost of Debt and Intellectual Capital on Corporate Governance and Firm Value: Evidence from Indonesia }, proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia}, publisher={EAI}, proceedings_a={SU-AFBE}, year={2019}, month={8}, keywords={corporate governance cost of debt firm value intellectual capital}, doi={10.4108/eai.6-12-2018.2286318} }- Kartika Hendra Titisari
Moeljadi Moeljadi
Kusuma Ratnawati
Nur Khusniyah Indrawati
Year: 2019
Mediation Role of Cost of Debt and Intellectual Capital on Corporate Governance and Firm Value: Evidence from Indonesia
SU-AFBE
EAI
DOI: 10.4108/eai.6-12-2018.2286318
Abstract
This Study aims to investigate the relationship between corporate governance and firm value using mediation variable intellectual capital and cost of debt. Firm value is measured by using financial performance indicator, which in proximated with ROA, ROE, PBV and NPM. Corporate governance is proximated with CGPI. The sample of this research are companies that follow CGPI and is listed in BEI in observation period 2011 to 2015. Data analysis using structural equation method. The results showed that corporate governance directly affect the firm value (NPM and PBV) and corporate governance did not directly affect the firm value (ROA and ROE). Furthermore, cost of debt and intellectual capital full mediates the relationship between corporate governance and firm value (ROA and ROE) and partial mediate the relationship between corporate governance and firm value (NPM and PBV). Good corporate governance increases investor confidence in the company so that it lowers cost of debt. Furthermore, the decline in cost of debt increases firm value. Furthermore, corporate governance increase actually decreases the intellectual capital and then increases the firm value. From the model proposed in this study cost of debt and intellectual capital perfect mediate relations corporate governance and financial performance (ROA and ROE).