The Effect of Risk Management and Good Corporate Governance on Financial Performance and Its Impact on the Firm Value

Abstract

This research aims to test and prove empirically about the effect of Risk Management and Good Corporate Governance on Financial Performance and Its Impact on The firm Value [Study on Regional Venture Capital Company (PMVD) in Indonesia]. Population of this research are 27 companies of Venture Capital located in 26 Provinces, and that meet the criteria of sample are 27 companies of Venture Capital in 26 Provinces, so that total of observation analyzed to 162. Data used are statement of balance financial and income of PMVD from 2010 until 2015. Data source is from PT. Bahana Artha Ventura as mother company. Testing is done with Path Analysis. The analysis result shows that Risk Management has a significant negative effect on Financial Performance. GCG does not have a simultaneous effect on Financial Performance. Then Risk management has a significant negative effect on the Firm Value while Risk Management has a significant negative effect on the Firm Value through Financial Performance and GCG doesn’t have significant effect on the Firm Value through Financial Performance.