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The Effects of Good Corporate Governance for Corporate Value in Plantation Companies at Indonesian Stock Exchange (IDX)

Author

Listed:
  • Yefni

    (Accounting, Politeknik Caltex Riau, Indonesia Author-2-Name: Atika Zarefar Author-2-Workplace-Name: Politeknik Caltex Riau, Indonesia Author-3-Name: Arumega Zarefar Author-3-Workplace-Name: Universitas Riau, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective � This research aims to identify the effect of good corporate governance ('GCG') factors such as the size of the board, the presence of independent commissioners and audit committees, managerial ownership, and institutional ownership on corporate value (price to book value). This study also uses profitability measured by Return on Assets ('ROA') as moderating variables. Methodology/Technique � The object of this study is plantation companies listed on the Indonesian Stock Exchange (IDX) between 2011 to 2015. The samples are selected by using purposive sampling method. The hypothesis in this study is tested by using multiple linear regression. Findings � There are three variables that significantly influence corporate value. These are independent commissioners, managerial ownership, and institutional ownership. Moreover, profitability does not moderate the relationship between GCG and company value. Novelty � The research is intended to find a relationship between good corporate governance and firm performance among plantation companies."

Suggested Citation

  • Yefni, 2017. "The Effects of Good Corporate Governance for Corporate Value in Plantation Companies at Indonesian Stock Exchange (IDX)," GATR Journals gjbssr471, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr471
    as

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    References listed on IDEAS

    as
    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Audit Committee; Corporate Values; Good Corporate Governance; Independent Commissioner; Institutional Ownership; Managerial Ownership; Price to Book Value; Return on Assets.;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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