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How Financial Performance and State-Owned Enterprise (SOE) Values Are Affected by Good Corporate Governance and Intellectual Capital Perspectives

Author

Listed:
  • Yustinus Budi Hermanto

    (Faculty of Economic and Business, Universitas Katolik Darma Cendika, Surabaya 60200, Indonesia)

  • Lusy Lusy

    (Faculty of Economic and Business, Universitas Katolik Darma Cendika, Surabaya 60200, Indonesia)

  • Maria Widyastuti

    (Faculty of Economic and Business, Universitas Katolik Darma Cendika, Surabaya 60200, Indonesia)

Abstract

The implementation of good governance and attention to resources will affect company survival. The purpose of this study was to examine the effect of good corporate governance and intellectual capital on financial performance and company value through statistical and econometrical tests on SOEs in Indonesia. This is quantitative research with state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange. The total study population was 16 SOEs. This study used a saturated sample. Furthermore, the exogenous variables in this study were good corporate governance (GCG) and intellectual capital, whereas the endogenous variables were the company and financial performance. This study used the statistical analysis inferential because the variables used indicators and were formative. The results indicated that GCG and financial performance have positive effects on firm value, intellectual capital does not affect company value, and GCG and intellectual capital have positive effects on financial performance. The evaluation of indirect effects in this study showed that financial performance mediates the effect of intellectual capital and GCG on company value.

Suggested Citation

  • Yustinus Budi Hermanto & Lusy Lusy & Maria Widyastuti, 2021. "How Financial Performance and State-Owned Enterprise (SOE) Values Are Affected by Good Corporate Governance and Intellectual Capital Perspectives," Economies, MDPI, vol. 9(4), pages 1-13, September.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:134-:d:641611
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    References listed on IDEAS

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    1. Filip Fidanoski & Kiril Simeonovski & Vesna Mateska, 2014. "The Impact of Board Diversity on Corporate Performance: New Evidence from Southeast Europe," Advances in Financial Economics, in: Corporate Governance in the US and Global Settings, volume 17, pages 81-123, Emerald Group Publishing Limited.
    2. Siti Nuryanah & Sardar M. N. Islam, 2015. "Corporate Governance and Financial Management," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-43561-3, September.
    3. Bettina S. T. Büchel, 2001. "Communication Technology and Organizations," Palgrave Macmillan Books, in: Using Communication Technology, chapter 1, pages 1-14, Palgrave Macmillan.
    4. Abramov, Alexander & Radygin, Alexander & Chernova, Maria, 2017. "State-owned enterprises in the Russian market: Ownership structure and their role in the economy," Russian Journal of Economics, Elsevier, vol. 3(1), pages 1-23.
    5. Muhammad Irfan Javaid & Attiya Yasmin Javid, 2018. "Efficacy of going concern prediction model for creditor oriented regime via liquidation," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 19(4), pages 552-573, November.
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    Cited by:

    1. Dejan Jelovac, 2025. "Current Challenges of Good Corporate Governance in NGOs: Case of Slovenia," World, MDPI, vol. 6(1), pages 1-33, February.
    2. Prince Yeboah Boateng & Francis Aboagye-Otchere & Nicholas Asare, 2025. "Intellectual capital and financial performance: linear and non-linear evidence from commercial state interest entities," SN Business & Economics, Springer, vol. 5(8), pages 1-40, August.
    3. Adrian Doru Bigioi & Cristina Elena Bigioi, 2023. "Governance and Performance in Romanian Energy Companies," Energies, MDPI, vol. 16(13), pages 1-22, June.

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