How Good Corporate Governance, Financial Performance and External Factors Influence Company Value
DOI:
https://doi.org/10.47709/governors.v3i1.3697Keywords:
Company Value, Corporate Governance, External Factors, Financial PerformanceAbstract
The purpose of this study is to examine and explain the effect of good corporate governance on company value, the effect of financial performance on company value, and the influence of external factors on company value. In addition, many previous studies explored good corporate governance using ownership structure indicators, and this study also aims to reexamine the theory that has been used The model used in data analysis in this study is the PLS model by going through four stages of testing, namely individual item reliability, internal consistency reliability, average variance extracted, and discriminant validity. The results of the study show that: 1) Good Corporate Governance has a significant effect on Corporate Value; 2) Financial Performance does not have a significant effect on Company Value; 3) External Factors do not have a significant effect on Company Value. The resulting Termination Test (R2) was 29.3%, meaning that the contribution of the influence of Good Corporate Governance, Financial Performance, and External Factors variables on Company Value was 29.3% including moderate categories, while the remaining 70.7% was influenced by other variables that were not included in this model.
References
Ackert, L. F., & Smith, B. F. (1993). Stock Price Volatility, Ordinary Dividends, and Other Cash Flows to Shareholders. The Journal of Finance, 48(4), 1147. https://doi.org/10.2307/2329033
Apergis, N., & Eleftheriou, S. (2002). Interest rates, inflation, and stock prices: the case of the Athens Stock Exchange. Journal of Policy Modeling, 24(3), 231–236. https://doi.org/10.1016/S0161-8938(02)00105-9
Arifin, J., Siti Astuti, E., & Arifin, Z. (2014). The Influence of Corporate Governance, Intellectual Capital on Financial Performance and Firm Value of Bank Sub-Sector Campanies Listed at Indonesia Stock Exchange in Period 2008-2012. European Journal of Business and Management Www.Iiste.Org ISSN, 6(26). www.iiste.org
Barnes, K., Waitt, G., Gill, N., & Gibson, C. (2006). Community and nostalgia in urban revitalisation: A critique of urban village and creative class strategies as remedies for social “problems.” Australian Geographer. https://www.tandfonline.com/doi/abs/10.1080/00049180600954773
Barnes, M., Boyd, J. H., & Smith, B. D. (1999). Inflation and asset returns. European Economic Review, 43(4–6), 737–754. https://doi.org/10.1016/S0014-2921(98)00090-7
Bodie, Z., Alex Kane, & J. Marcus, A. (2006). Investments (7th Edition). McGraw-Hill/Irwin.
Cole, R. A., & Mehran, H. (1998). The effect of changes in ownership structure on performance: Evidence from the thrift industry. In Journal of Financial Economics (Vol. 50).
Connelly, J. T., Limpaphayom, P., & Nagarajan, N. J. (2012). Form versus substance: The effect of ownership structure and corporate governance on firm value in Thailand. Journal of Banking & Finance, 36(6), 1722–1743. https://doi.org/10.1016/j.jbankfin.2012.01.017
Cornell, B., & Shapiro, A. C. (1987). Corporate Stakeholders and Corporate Finance. Financial Management, 16(1), 5–14. https://doi.org/https://doi.org/10.2307/3665543
Eugene, B. F., & Houston, J. (2011). Dasar - Dasar Manajemen Keuangan: Assetials Of Financial Management. Salemba Empat.
Ewing, B. T., & Payne, J. E. (2005). The response of real estate investment trust returns to macroeconomic shocks. Journal of Business Research, 58(3), 293–300. https://doi.org/10.1016/S0148-2963(03)00147-4
Ferial, F., Suhadak, & Handayani, S. R. (2016). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Dan Efeknya Terhadap Nilai Perusahaan (Studi Pada Badan Usaha Milik Negara Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2014). Jurnal Administrasi Bisnis, 33(1).
Gan, C., Lee, M., Hwa Au Yong, H., & Zhang, J. (2006). Macroeconomic Variables and Stock Market Interactions: New Zealand Evidence. In businessperspectives.org Investment Management and Financial Innovations (Vol. 3, Issue 4). https://orcid.org/0000-0002-5618-1651
Ghosh, S. (2008). Do Leverage, Dividend Policy and Profitability Influence Future Value of Firm? Evidence from India. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1158251
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433. https://doi.org/10.1007/s11747-011-0261-6
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing (pp. 277–319). https://doi.org/10.1108/S1474-7979(2009)0000020014
Husnan, S. (2019). Manajemen Keuangan (Edisi 3). Universitas Terbuka.
Irawati, A., & Putra, D. (2014). Analisis Technology Acceptance Model dalam Memahami Niat Perilaku Mahasiswa untuk Menggunakan E-Learning. Proseding Seminar Bisnis & Teknologi .
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Jogiyanto. (2003). Teori Portofolio dan Analisis Investasi (Edisi ii). BPEE UGM.
Maassen, G. F. (2000). An International Comparison of Corporate Governance Models. Spencer Stuart.
Manaje Jr, P. M. (2012). Impact of Selected Financial Variables on Share Price of Publicly Listed Firms in the Philippines. American International Journal of Contemporary Research, 2(9).
Mankiw, N., G. (2007). Makroekonomi (A. B.?: I. Nurmawan., Ed.; Keenam). Penerbit Erlangga.
Maria, A., Gutierrez, J., Kennedy, E., Ang, S., Carlos, P. M. A., & Umali, J. C. (2016). Presented at the DLSU Research Congress.
McEachern, W. A. (2000). Ekonomi Makro: Pendekatan Kontemporer (1st ed.). Salemba Empat.
Mishkin, F. S., & Eakins, S. G. (2012). Financial Markets and Institutions The Prentice Hall Series in Finance. Pearson. www.myfinancelab.com
Munawir. (2001). Analisa Laporan Keuangan (Ke-Empat). Liberty Yogyakarta.
Nelson, C., & Schwert, G. W. (1977). Short-Term Interest Rates as Predictors of Inflation: On Testing the Hypothesis That the Real Rate of Interest is Constant. American Economic Review, 67(3), 478–486.
Nugroho, A. R. (2014). Aplikasi Partial Least Square Structural Equation Modelling untuk Menilai Faktor Pencemaran Air Kali Surabaya. Jurnal Purifikasi, 14(2), 136–148. https://doi.org/10.12962/j25983806.v14.i2.19
Roberts, K., Varki, S., & Brodie, R. (2003). Measuring the quality of relationships in consumer services: an empirical study. European Journal of Marketing, 37(1/2), 169–196. https://doi.org/10.1108/03090560310454037
Ross, S. A. (1977). The Determination of Financial Structure: The Incentive-Signalling Approach. In Source: The Bell Journal of Economics (Vol. 8, Issue 1).
Samuelson, P. A., & Nordhaus, W. D. (2011). Ilmu Mikroekonomi (14th ed.). Erlangga.
Subiyakto, A., Ahlan, Abd. R., Kartiwi, M., & Sukmana, H. T. (2015). Measurement of Information System Project Success Based on Perceptions of the Internal Stakeholders. International Journal of Electrical and Computer Engineering (IJECE), 5(2), 271. https://doi.org/10.11591/ijece.v5i2.pp271-279
Sukirno, S. (2015). Makroekonomi (Edisi Keti). Rajawali Pers.
Sukma Prasitadewi, M., & Wijana Asmara Putra, I. N. (2020). Pengaruh Faktor Internal dan Faktor Eksternal Terhadap Nilai Perusahaan. E-Jurnal Akuntansi, 30(6), 1397. https://doi.org/10.24843/EJA.2020.v30.i06.p05
Sulong, Z., & Mat Nor, F. (2008). Dividends, ownership structure and board governance on firm value: Empirical evidence from Malaysian listed firms. https://www.researchgate.net/publication/288786956
Tsoukalas, D., & Sil, S. (1999). The determinants of stock price: evidence from the United Kingdom stock market . Management Research News, 22.
Wahab, E. A. A., How, J. C. Y., & Verhoeven, P. (2007a). The Impact of the Malaysian Code on Corporate Governance: Compliance, Institutional Investors and Stock Performance. Journal of Contemporary Accounting & Economics, 3(2). https://doi.org/https://doi.org/10.1016/S1815-5669(10)70025-4
Wahab, E. A. A., How, J. C. Y., & Verhoeven, P. (2007b). The Impact of the Malaysian Code on Corporate Governance: Compliance, Institutional Investors and Stock Performance. Journal of Contemporary Accounting & Economics, 3(2), 106–129. https://doi.org/10.1016/S1815-5669(10)70025-4
White, G. I., Ashwinpul C, S., & Dov, F. (2002). The Analysis and Use of Financial Statements. John Wiley & Sons.
Wulandari, N. (2006). Pengaruh Indikator Mekanisme Corporate Governance Terhadap Kinerja Perusahan Publik di Indonesia. 1(2), 120–136.
Yamin, S., & Kurniawan, H. (2011). Generasi Baru Mengelola Data Penelitian dengan Partial Least Square Path Modeling?: Aplikasi Dengan Software XLSTAT, SmartPLS, dan Visual PLS . Salemba Infotek.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Kurniaty, Mellani Yuliastina, Netty Nurhayati, Dewi Lesmanawati
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
