Research Article

THE ROLE OF FINANCIAL PERFORMANCE TO MEDIATE THE EFFECT OF CORPORATE GOVERNANCE ON FIRM VALUE

Volume: 3 Number: 9 December 27, 2017
  • Niswah Baroroh *
  • Linda Agustina
  • Trisni Suryarini
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IJASOS- International E-journal of Advances in Social Sciences
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THE ROLE OF FINANCIAL PERFORMANCE TO MEDIATE THE EFFECT OF CORPORATE GOVERNANCE ON FIRM VALUE

Abstract

Corporate Governance is one of the company's assets that is capable of being a characteristic which reflects the values that built the company. The governance that carried out continuously will affect work pattern and company performance. One of the company's performances is financial performance. The aimed of this research are to analyze the effect of financial performance and corporate governance on firm value as individual variable and to analyze the effect of corporate governance to firm value through the financial performance. The population of this research is all Indonesian companies listed in Corporate Governance Performance Index (CGPI) in 2012-2014 as many as 32 companies. The samples used purposive sampling technique and get 22 companies with 66 analysis units. Documentation technique used to collect the data which analyzed by path analysis using Structural Equation Modelling (SEM) by Wrap PLS. The results showed that financial performance could be mediating the effect of corporate governance on firm value; proved by there is a significant effect of corporate governance on financial performance and financial performance on firm value, but there is no significant effect of corporate governance on firm value. 

Keywords

References

  1. Agustina, Linda and NiswahBaroroh. (2016). The Relationship between Enterprise Risk Management (ERM) and Firm Value Mediated Through The Financial Performance. Review of Integrative Business &EconomicsResearch. Vol.5 no.1 pp 128-138. Bauer, Rob and Roger Otten.(2004). Empirical evidence on corporate governance in Europe.The Effect on Stock Returns, Firm Value and Performance.Journal of Asset Management. August 2004. Gill,Amirjit and John D Obradovich.(2013). The Impact of Corporate Governance and Financial Leverage on The Value of Amrican Firms. International Research of Finance and Economics, ISSN 1450-2887 Issue 91. (Diaksestanggal 07 Mei 2015). Mahendra, Alfredo.(2011). Pengaruh Kinerja Keuangan terhadap Nilai Perusahaan (Kebijakan Deviden sebagai Variabel Moderating) pada Perusahaan Manufaktur di Bursa Efek Indonesia.TesisUniversitasUdayana Bali. Nahar, Shamsun. Christine Jubb and Muhamad I.Azim. (2016). Risk Governance and Performance: a developing country perspective. Managerial Auditing Journal.Vol.31 Iss 31 pp.250-268. Perdana, Ramadhan Sukma.(2014). AnalisisPengaruh Corporate Governance TerhadapNilai Perusahaan.Diponegoro Journal of Accounting, Volume 3 Nomor 3 Tahun 2014, pp. 1-13. Sekerci, Naciye.(2013). Does Enterprise Risk Management Create Value for Firms?: Evidence from Nordic Countries. Ph.D thesis, School of Economics and Management, Lund University. Tahir, IzahMohd and Ahmad Rizal Razali.(2011). The Relationship Between Enterprise Risk Management (ERM) and Firm Value, Evidence From Malaysian Public Listed Companies. International Journal of Economics and Management Science, vol.1 No.2 2011, pp 32-41. Tanderlilin, (2010).AnalisisInvestasidanTeoriPortofolio.Yogyakarta :Penerbit YKPN

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Niswah Baroroh *
Indonesia

Linda Agustina
Indonesia

Trisni Suryarini
Indonesia

Publication Date

December 27, 2017

Submission Date

September 12, 2017

Acceptance Date

November 30, 2017

Published in Issue

Year 2017 Volume: 3 Number: 9

DOI

https://doi.org/10.18769/ijasos.370044

IZ

https://izlik.org/JA48FH78PG

Cite

RIS / Bibtex
EndNote
Baroroh N, Agustina L, Suryarini T (December 1, 2017) THE ROLE OF FINANCIAL PERFORMANCE TO MEDIATE THE EFFECT OF CORPORATE GOVERNANCE ON FIRM VALUE. IJASOS- International E-journal of Advances in Social Sciences 3 9 1011–1014.

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