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The effect of good corporate governance and company size on firm value: Financial performance as an intervening variable

Author

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  • Siti Miftahul Jannah

    (Department of Management, Faculty of Economics, Maulana Malik Ibrahim State Islamic University, Malang.)

  • Farahiyah Sartika

    (Department of Management, Faculty of Economics, Maulana Malik Ibrahim State Islamic University, Malang.)

Abstract

The purpose of this study is to see whether there is an effect of the implementation of good corporate governance, firm size, and financial performance on firm value. And the results are known if the implementation of good corporate governance has a positive effect on firm value which indicates that the implementation of good corporate governance in Indonesia has a good impact on the development of firm value, in contrast to firm size and financial performance which have a negative effect on firm value, which is known if assets and profits are high. compared best with low firm value, and vice versa. On the one hand, financial performance can be an intervention variable for good corporate governance and firm size on firm value in a positive direction, which means that if firm profits can have an influence on the relationship between firm size and good corporate governance, the firm value will increase. From these objectives and results, it is recommended for further researchers to explore the indicators that exist in each member to find out valid findings by reviewing various aspects Key Words:Good Corporate Governance, Financial Performance, Company Size, Company Value

Suggested Citation

  • Siti Miftahul Jannah & Farahiyah Sartika, 2022. "The effect of good corporate governance and company size on firm value: Financial performance as an intervening variable," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 241-251, March.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:2:p:241-251
    DOI: 10.20525/ijrbs.v11i2.1619
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    References listed on IDEAS

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    1. Hoje Jo & Maretno Harjoto, 2012. "The Causal Effect of Corporate Governance on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 106(1), pages 53-72, March.
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