Abstract
The concept of good corporate governance (GCG) has not been fully implemented by most business actors which is reflected in the assessment results of the ASEAN Corporate Governance Scorecard. The study aims to analyze the impact of external and internal factors including the implementation of GCG on the profitability and firm value in the LQ45 index of the Indonesia Stock Exchange. The econometric model is built as a system of simultaneous equations and estimated by using the Two-Stage Least Squares (2SLS) method and the impact simulation analysis policy. The result shows impact of decrease in gross domestic product is greater than increase in inflation. Furthermore if the decrease in gross domestic product or the increase in inflation that is resolved by company policies by improving corporate governance, making efficiency by reducing operational costs, and increasing total assets, have greater impact than the company resolved by improving corporate governance and making efficiency by reducing the cost of goods sold. Keywords: econometric model, external and internal factors, firm value, good corporate governance, profitability
Highlights
by most business actors which is reflected in the assessment results of the ASEAN Corporate Governance Scorecard
internal factors including the implementation of good corporate governance (GCG) on the profitability
The econometric model is built as a system of simultaneous equations
Summary
Analisis untuk mencapai tujuan adalah model sistem persamaan simultan dan alternatif skenario simulasi kebijakan. Jenis data yang digunakan adalah data panel dari 14 perusahaan selama 5 tahun yang bersumber dari laporan tahunan perusahaan di Bursa Efek Indonesia periode 2014 – 2018 diakses melalui www.idx.co.id, situs web perusahaan, dan informasi resmi lembaga regulator. Sampel penelitian adalah perusahaan tercatat di Bursa Efek Indonesia. Pengambilan sampel dalam penelitian ini menggunakan metode purposive sampling dengan kriteria: perusahaan sektor non-keuangan di indeks LQ45 dan perusahaan yang tetap berada pada periode tahun 2014 – 2018 berjumlah 14 perusahaan. Daftar sampel perusahaan disajikan dalam Tabel 1. Daftar sampel perusahaan sektor non-keuangan indeks LQ45 di Bursa Efek Indonesia tahun
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