The Effect of Good Corporate Governance Mechanism on Firm Value with Financial Performance as a Moderation Variable

Abstract

This study aims to examine the effect of good corporate governance mechanisms consisting of managerial ownership (KM), audit committee (KA), board of commissioners (DK), and board of directors (DD) on firm value (PBV) and financial performance (ROA) as moderating variable. In this study the population used is a banking company listed on the Indonesia Stock Exchange (IDX). The number of samples collected was 15 companies within a 5 year research period. The selected sample was carried out using a purposive sampling technique. The results showed that managerial ownership has a positive and significant effect on firm value, audit committee has no significant effect on firm value, the board of commissioners has no significant effect on firm value, the board of directors has a positive and significant effect on firm value, financial performance can moderate the effect of managerial ownership on firm value, financial performance does not moderate the effect of the audit committee on firm value, financial performance does not moderate the effect of the board of commissioners on firm value, financial performance moderates the effect of the board of directors on firm value.