PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAA DENGAN PROFITABILITASSEBAGAI VARIABEL INTERVENING(Studi Perusahaan Perbankan Yang Terdaftar di BEI Periode 2016 – 2020)

Abstract

This research aimed to examine the effect of Good Corporate Governance on firm value through profitability as the intervening variable at Banking companies that were listed on Indonesia Stock Exchange. Furthermore, the independent variable of this research used Good Corporate Governance measured by Managerial Ownership. Meanwhile, the dependent variable of this research used Firm Value which was measured through Price to Book Value. Lastly, the intervening variable of this research used Profitability measured by Return On equity and Return On Asset. This research used financial performance during 5 years in the 2016 – 2020 period. The research population used banking companies listed on The Indonesia Stock Exchange during the 2016-2020 period with a total of 47 companies. This research was quantitative. Moreover, the research sample collection technique used 6 companies sample with 30 total data. In addition, this research using Partial Least Square used SmartPlS application 3.3.9. The research result concluded that 1) Good Corporate Governance had a significant effect on the firm value, 2) Good Corporate Governance had a significant effect on the profitability, 3) Profitability had a significant effect on firm value, and 4) Profitability mediated the effect of Good Corporate Governance (GCG) on firm value.