The Moderating Role of Good Corporate Governance: The Influence of Capital Structure, Profitability, Dividend Payment and Inflation on The Value of Mining Companies in Indonesia

Abstract

The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies; (2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value; (2) profitability has a positive significant effect on firm value; (3) dividend payment has no significant effect on firm value; (4) inflation has a negative significant effect on firm value; (5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.