PENGARUH KINERJA KEUANGAN DAN GOOD CORPORATE GOVERNANCE (GCG) TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine the effect of profitability, liquidity, and Good Corporate Governance (GCG) on firm value. The profitability was referred to as Return On Equity (ROE), liquidity was referred to as Current Ratio (CR), Good Corporate Governance was referred to as institutional ownership, and firm value was referred to as Price Book Value (PBV). Moreover, the population was pharmaceutical companies that were listed on Indonesia Stock Exchange from 2017 up to 2021. The research was causal-comparative. Furthermore, the data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 40 samples from 9 pharmaceutical companies that were listed on Indonesia Stock Exchange. As the result, it concluded that profitability had a positive effect on firm value of pharmaceutical companies that were listed on IDX from 2017 up to 2021. However, liquidity did not affect firm value of pharmaceutical companies that were listed on IDX from 2017 up to 2021. On the other hand, institutional ownership had a positive effect on the firm value of pharmaceutical companies that were listed on IDX from 2017 up to 2021.