Research Article
Impact of Selected Factors Towards Shareholder Value Creation
@INPROCEEDINGS{10.4108/eai.7-10-2021.2316221, author={Antonius Antonius and Karina Harjanto}, title={Impact of Selected Factors Towards Shareholder Value Creation}, proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2022}, month={4}, keywords={audit quality capital structure economic value added free cash flow good corporate governance shareholder value creation}, doi={10.4108/eai.7-10-2021.2316221} }- Antonius Antonius
Karina Harjanto
Year: 2022
Impact of Selected Factors Towards Shareholder Value Creation
ICEBE
EAI
DOI: 10.4108/eai.7-10-2021.2316221
Abstract
The purpose of this research was to obtain empirical evidence about the effect of capital structure, Good Corporate Governance, Free Cash Flow, and audit quality towards shareholder value creation. The sample in this research was selected by using purposive sampling. The secondary data were analyzed by using multiple linear regression method. The total amount of sample in this research were 9 companies in trade, service, and investment sector. The results of this research were that capital structure had no negative effect towards shareholder value creation, board size had significant negative effect towards shareholder value creation, commissioner independence and audit quality had no positive effect towards shareholder value creation, and FCF had significant positive effect towards shareholder value creation. The implication of this research was that company needed to maintain an adequate level of free cash flows in order to be able to pay debt, reduce invested capital, and increase EVA.
