PENGARUH GOOD CORPORATE GOVERNANCE, PROFITABILITAS, DAN LEVERAGE TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to analyze the effect of Good Corporate Governance, Profitability, and Leverage on the firm value of Pharmaceutical companies which were listed on Indonesia Stock Exchange (IDX). While Good Corporate Governance was measured by Corporate Governance Efficiency, Profitability was measured by Return On Asset, and Leverage was measured by Debt to Equity Ratio. The research was quantitative with causal-comparatives as its method. Moreover, the data were secondary in the form of financial statements in the Indonesia Stock Exchange. Furthermore, the data collection technique used purposive sampling. In line with that, there were 8 pharmaceutical companies which were listed on Indonesia Stock Exchange during 2016-2020. According to the classical assumption test, it showed that all variables fulfilled the assumption and there was no violation. Likewise, from the F and R test, it showed that the model was properly used. Additionally, based on hypothesis test, it concluded that Corporate Governance Efficiency had a negative and insignificant effect on firm value. Similarly, Return On Asset had a negative and insignificant effect on firm value. On the other hand, Debt to Equity Ratio had a positive and significant effect on firm value.
Keywords: good corporate governance, profitability, leverage, firm value