Corporate governance and firm performance

Mulyanto Nugroho

doi:10.5267/j.ac.2020.10.019

Abstract

This research discusses and analyzes scientific, macroeconomic, financial risk management, audit views, stock returns, investment decisions, funding decisions, and good corporate governance as a moderator. There are 147 samples of manufacturing companies listed on the Indonesia Stock Exchange. The results of this study indicate that there are four insignificant hypotheses. The results indicate: Macroeconomics does not have a substantial effect on Financial Risk Management, Good corporate governance (GCG) is having no significant impact on Going Concern Audit Opinion. Stock Return is having no significant effect on Going Concern Audit Opinion; GCG does not moderate the impact of Stock Return on Going Concern Audit Opinion when the level of significance is five percent.

Highlights

The Indonesian stock exchange-listed manufacturing industry is a labor-intensive undertaking capable of hosting many workers; both state-owned and private manufacturing must thrive or continue to participate
From the research results it can be concluded that, TA has a significant effect on FRM, GCAO and SR, which indicates that if the technical aspects are improved, it will affect the increase in the company's Financial Risk Management, Going Concern Audit Opinion, and Stock Return
There is an evidence in this research that ID has a significant impact on FRM, GCAO and SR, which indicates that when investment decisions are increased, it will affect the increase in the company's Financial Risk Management, Going Concern Audit Opinion, and Stock Return

Summary

Introduction

The Indonesian stock exchange-listed manufacturing industry is a labor-intensive undertaking capable of hosting many workers; both state-owned and private manufacturing must thrive or continue to participate. Any financial reporting system includes a clear management obligation to provide detailed assessments of the entity's ability to retain as an ongoing consideration and guidance on issues to be considered and reporting on the company. Most financial reporting schemes can’t meet consistent management standards to make a fair assessment of the company's ability to remain a concern. As the ongoing concern theory is a core concept in the preparation of financial statements, preparing financial statements allows management to assess the entity's survival capacity as an ongoing issue, even if there is no explicit mechanism for the financial reporting process. Management's assessment of the entity's ability to remain a concern includes determining the outcome of events or future situations that may at any time be uncertain. Several studies that have been conducted by previous experts, none have used Good Corporate Governance as a moderator variable on financial risk management variables, investment decisions, funding decisions, stock return towards going concern audit opinion, this is a novelty of this paper

Literature Review and Hypothesis

Hypothesis

Nugroho /Accounting 7 (2021)

Research Methods

Research Result

Conclusion