Examining the Causality of Six Measurements of Good Corporate Governance on Value of Firm: An Empirical Evidence From Firms of Jakarta Islamic Index
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07
Abstract
The objective of this study is to ascertain the effects of GCG, measured by board of director size, board meeting frequency, independent commissioner proportion, audit committee size, and managerial ownership, on firm value utilizing firm size and leverage as control variables. All companies listed in the Jakarta Islamic Index during 2017 to 2021 are the population of this study. Total sample of 18 companies were used using the purposive sampling for analysis. Data from the study were examined using panel data regression analysis. Based on the testing, firm value was positively impacted by the board meetings frequency, number of director board, and percentage of independent commissioners. The audit committee and managerial ownership, in contrast, have no impact on firm value. Firm size, a control variable, has a detrimental impact on firm value. Leverage, however, has no influence on firm value. As the implication, the firms should enhance the standard of good corporate governance and abide by applicable laws in order to boost investor and public confidence and firm value.
Authors and Affiliations
Muhammad Rayhan Pradipta, Najmudin, Dian Purnomo Jati
Keywords
Related Articles
- EP ID EP727201
- DOI 10.47191/jefms/v6-i7-10
- Views 43
- Downloads 0
An Investigation into the Causes of Tax Evasion and Avoidance by Small and Medium Enterprises (SMEs) and Their Effect on the Zambian Economy in Chililabombwe District
This study was purposed to investigate the causes of tax evasion and avoidance and its effect on the Zambian economy in Chililabombwe District of the Copperbelt Province. It had two-fold objectives: to examine the causes...
The Impact of GCG, Internal Audit Eliminates Corruption and Improves Performance Company 2024
State performance and company performance will be better if corruption can be eliminated by implementing GCG and Internal Audit. The phenomenon of corruption has become entrenched, many public officials have been arreste...
The Contribution of Philosophy to Ethical Corporate Finance: Challenges and Perspectives
This article explores the synergy between philosophy, corporate finance, and corporate social responsibility (CSR), emphasizing the importance of interdisciplinarity in addressing the complex ethical, social, and environ...
The Decision-Making Journey of Buying Personal Care Product at Indonesia Supermarket: A Qualitative Study
This study investigates the current purchasing behaviour of women regarding personal care products, using a decision journey methodology. It examines the impact of post-pandemic shopping shifts on XYZ Supermarket's sales...
The Comparison of ATM/Debit Card, Credit Card, and E-Money Transactions in Indonesia Before and After the Covid-19 Pandemic Period January 2018 - August 2023
The use of various electronic payment media found an unexpected momentum when the world experienced the COVID-19 pandemic. The public's usage of electronic payment media has increased, contributing to social limitations...