The Role of Profitability as A Mediator between Good Corporate Governance and Firm Value
- DOI
- 10.2991/aebmr.k.200606.062How to use a DOI?
- Keywords
- good corporate governance, profitability, firm value
- Abstract
This research aims at evaluating and analysis the effect of good corporate governance on firm value mediated by profitability. Good corporate governance is a proxy Management ownership, institutional ownership and independent commissioner. Profitability is measured using Return on Equity and firm value is proxy for price book value. This research was conducted manufacturing companies listed on the Indonesian Stock Exchange for the period 2012-2017. There were 121 listed companies involved in this study They were chosen based on several criteria resulted in 24 companies selected as the sample. The research unit of analysis is a panel data of 168 observations. Using path analysis, this study found that The effect of managerial ownership and institutional ownership on firm value is not significant, while the impact of the independent commissioner on firm value is significant. Furthermore, the three proxies of good corporate governance significantly influence profitability. In addition, profitability mediates the effect of independent commissioner on firm value, but it does not mediate the effect of managerial ownership and institutional ownership on firm value.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Mohamad Agus Salim Monoarfa AU - Atim Djazuli AU - Moeljadi AU - Sumiati PY - 2020 DA - 2020/06/09 TI - The Role of Profitability as A Mediator between Good Corporate Governance and Firm Value BT - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019) PB - Atlantis Press SP - 357 EP - 362 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200606.062 DO - 10.2991/aebmr.k.200606.062 ID - Monoarfa2020 ER -