The Effect of Profitability and Corporate Size on Company Value with Good Corporate Governance as a Moderating Variable in Manufacturing Companies

Abstract

Manufacturing companies are chosen as the object of research because manufacturing companies listed on the Indonesia Stock Exchange (IDX) each year are developing and consist of various industrial sub-sectors so as to reflect the overall capital market reaction. This research aims to find out the effect of profitability and the size of the company on the value of the company with good corporate governance (GCG) as a moderator variable, as well as whether good corporate governance (GCG) is able to moderate the relationship between profitability and the size of the company to the value of the company. The population in the study was a company. The population in the study is a Manufacturing company listed on the Indonesia Stock Exchange (IDX) in the period 2018-2020. Samples collected using the purposive sampling method totaled 31 companies determined as samples. The methods used in this study are descriptively quantitative, and the nature of the research is explanatory. The data collection techniques used are documentation as well as the types and sources of data used are secondary data. The study used partial least square (PLS) data analysis methods. The results showed that profitability affects the value of the company, the size of the company has no effect on the value of the company, Good Corporate Governance (GCG) is not able to moderate the relationship between profitability and the size of the company to the value of the company.