Corporate Governance, Ownership Structure, Agency Costs and Corporate Value (In the Banking Sector Listed on The IDX for the 2016-2019 Period)

Abstract

The aim of the study is to examine the effectiveness of corporate governance and ownership structure on firm value which presided by agency costs in the banking sector listed on the IDX for the 2016-2019 period. Corporate governance is measured by independent board of commissioners and ownership structure is measured by institutional ownership. On the other hand, moderating variable for agency costs is measured by asset utilization. The independent variable of corporate value is measured by using the price earning ratio (PER). The research method uses multiple linear regression analysis. The results of this study showed that corporate governance and ownership structure had a significant positive effect on corporate value. Agency costs strengthen the influence of corporate governance on corporate value. Agency costs also strengthen the effect of ownership structure on corporate value.