PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE DAN KINERJA PERUSAHAAN TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine and analyze the effect of mechanism of Good Corporate Governance (GCG) namely, managerial ownership, institutional ownership, independent commissioners, audit committee, and companies’ performance on the firm value of LQ-45 companies listed on the Indonesia Stock Exchange (IDX) during 2020-2022. The result concluded that managerial ownership had a positive and significant effect on firm value. It meant managerial ownership could decrease the agency conflict within companies. Likewise, institutional ownership had a positive and significant effect on firm value. In other words, the ownership could be the mechanism of monitoring that guaranteed the incline of the stakeholders’ prosperity. However, the independent commissioner did not affect firm values since it could be only used to fulfill the formal requirement. Meanwhile, in majority the stakeholders took important roles so that the performance of independent commissioners did not relate too much. Similarly, the audit committee did not affect firm value. Number of the committee was not a guarantee for companies’ performance to grow well. Therefore, the investors did not consider their existence. In contrast, Return On Asset had a positive and significant effect on firm value, which showed how good the companies’ performance was.