Effect of Corporate Governance Mechanisms on Financial Performance and Firm Value with Green Accounting Disclosure as Moderating Variables

Kartika Sari ,Wiwik Utami

doi:10.7176/rjfa/10-24-16

Abstract

This study aims to examine and analyze the effect of corporate governance mechanisms on financial performance and firm value with the green accounting disclosure as a moderating variable. The study was conducted at the hospitality sub-sector companies listed on the Indonesia Stock Exchange for the period of 2013-2017. Sampling is done by purposive sampling. The analytical methods used are path analysis and moderated regression analysis (MRA). The results of the research in the direct effect test show that corporate governance mechanisms that are proxy by foreign ownership and institutional ownership do not affect the financial performance and firm value. The frequency of audit committee meetings has a significant effect to financial performance and firm value. Financial performance has a significant effect to firm value. The financial performance can not mediate foreign ownership and institutional ownership to firm value. Financial performance can mediate the frequency of audit committee meetings to firm value. Green accounting disclosures have been proven to moderate (weaken) financial performance to firm value. Keywords: corporate governance mechanisms; financial performance, firm value, green accounting disclosure DOI : 10.7176/RJFA/10-24-16 Publication date: December 31 st 2019

Highlights

As the number of tourist destinations increases and tourist visits to Indonesia can be an opportunity for hospitality companies that have gone public
Corporate governance mechanisms that are proxied by foreign ownership and institutional ownership do not affect the financial performance and firm value
The frequency of audit committee meetings affects the financial performance and the frequency of audit committee meetings has a significant effect on the negative direction of firm value

Summary

Introduction

As the number of tourist destinations increases and tourist visits to Indonesia can be an opportunity for hospitality companies that have gone public. Companies going public can always provide financial performance information as a signal to potential investors, with the selection of the right investment can help increase firm value. Company value is an investor's perception of the company which is often associated with stock prices. High stock prices make the value of the company high and illustrate the increased welfare of the owner. Companies are often faced with the condition of declining stock prices due to low performance, so that it can affect firm value. The following is a list of 5 companies that became top losers in trading on Indonesia Stock Exchange: Code

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