Corporate Governance, Ownership Structure, and Firm Value: Evidence from Indonesia
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 05
Abstract
Firm value is crucial for every company, but agency problems that arise due to conflicts of interest between managers and shareholders can reduce the value of a company. Based on agency theory, one mechanism to reduce agency problems is the implementation of good corporate governance and ownership structures. Therefore, this study aims to predict whether there is an influence between corporate governance and ownership structure on firm value. This research was conducted on companies in the LQ45 index during the 2020-2022 period. Researchers obtained 87 units of analysis which were then analyzed using structural equation modeling (SEM). This study's results are corporate governance has a positive and significant effect on firm value. However, ownership structure does not affect firm value. Future studies can use different samples, extend the observation period, use other indicators to measure each variable, and use a broader framework.
Authors and Affiliations
Gilda Maulina
Keywords
Related Articles
- EP ID EP727094
- DOI 10.47191/jefms/v6-i5-48
- Views 18
- Downloads 0
Impact of the Covid-19 Disaster on Small and Medium Micro Enterprises (MSMEs) in Mataram City, West Nusa Tenggara Province
The purpose of this study was to analyze the impact of the COVID-19 disaster on MSME actors in Mataram City, West Nusa Tenggara Province. The approach used in this research is qualitative research. Data collection techni...
Firms Attributes and Financial Performance of Quoted Conglomerates Companies in Nigeria
The study examined the effect of firms specific attributes and financial performance of quoted conglomerates companies in Nigeria. Secondary data were sourced through the published annual reports of the sampled companies...
Determinants Of Auditor Performance At State Islamic Religious Universities In Indonesia
This study aims to examine the effect, independence, competence and understanding of good governance as well as organizational commitment to auditor performance with organizational commitment as an intervening variable a...
The Effect of Overconfidence Bias, Herding Behavior and Experienced Regret on Investment Decision Making on the Indonesia Stock Exchange
Indonesia will experience a surge in investors in 2021 almost twice the number of investors before. Although investment is starting to be favored by the public, not all investors are able to make the right investment dec...
The Effect of Work Stress, Compensation and Leadership on Employee Performance at PT Flash Ekspedisi, Binjai
Human resources (HR) are a central factor in an organization. Therefore, to achieve the goals of an organization, it is very necessary to pay attention to factors of work stress, compensation, and leadership in an organi...