PENGARUH GOOD CORPORATE GOVERNANCE, PROFITABILITAS, DAN LEVERAGE TERHADAP FIRM VALUE

Abstract

This research aimed to examine the effect of Good Corporate Governance, profitability, and leverage on firm value of Pharmaceutical companies which were listed on Indonesia Stock Exchange (IDX). While Good Corporate Governance was referred to independent commissioner and managerial ownership, profitability was measured by ROA, and leverage was measured by DER. The research was quantitative. Moreover, the data collection technique used purposive sampling with 40 samples from 8 Pharmaceutical companies which were listed on IDX. Furthermore, the data analysis technique used multiple linear regression with SPSS. The research result concluded that independent commissioners had a negative effect on firm value, with its significance of 0.000 < 0.050 and coefficient of minus 6.340. On the other hand, managerial ownership did not affect firm value with its significance of 0.172 > 0.050 and coefficient of 1.394. In contrast, profitability had a positive effect on firm value with its significance of 0.019 < 0.050 and coefficient of 2.640. Differently, leverage had a negative and significant effect on firm value with its significance of 0.000 < 0.050 and coefficient of minus 4.571.