PENGARUH GOOD CORPORATE GOVERNANCE DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine and analyze the effect of Good Corporate Governance, namely Managerial
Ownership, Institusional Ownership, and Independent Commissioner, and profitability which was referred to
Return on Asset and Return on Equity on the firm value of LQ-45 companies which were listed on Indonesia
Stock Exchange 2014-2018. The research was quantitative. While, the data collection technique used purposive
sampling, in which the sample was based on criteria given. In line with, there were 95 companies as sample.
Meanwhile, the independent variable were namely managerial ownership, institusional ownership, independent
commissioner, return on assets, and return on equity. Additionally, the dependent variable was firm value.
Moreover, the data were secondary, which taken from companies annual report of LQ-45 which were listed on
Indonesia Stock Exchange. Furthermore, the data analysis technique used multiple linear regression with SPSS
25. The research result concluded managerial ownership, institusional ownership, and independent
commissioner did not affect the firm value. On the other hand, Return on Asset had significant effect on the firm
value. Likewise, Return on Equity had significant effect on the firm value.
Keywords: good corporate governance, return on assets, return on equity, firm value