PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE (GCG) TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL MODERASI

Abstract

This research aimed to analyze the effect of the mechanism of Good Corporate Governance (GCG)
on firm value, with profitability as moderating variable, of StateOwned Corporation which were listed
on Indonesia Stock Exchange during 2018-2020. The mechanism was measured by managerial
ownership, institutional ownership, and commissioner board. While, profitability was measured by
Return on Asset. Meanwhile, firm value was measured by Price to Book Value. The research was
quantitative. Moreover, the data were secondary in the form of companies’ financial statements.
Furthermore, the data collection technique used purposive sampling, with 39 observations from 13
companies which fulfilled the criteria given. Additionally, the data analysis technique used moderation
linear regression. In addition, the research result concluded that managerial ownership as well as
commissioner board had an insignificant effect on firm value. On the other hand, institutional
ownership had a positive and significant effect on firm value. In brief, profitability was not able to
moderate managerial ownership, institutional ownership, and commissioner board on firm value.