Abstract

The purpose of this study is to examine the effect of corporate governance and net interest margin on profitability and its implications for firm value. The study was conducted at State Owned Enterprises (Badan Usaha Milik Negara - BUMN) Banks in Indonesia. There are four state-owned banks, namely Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Tabungan Negara and Bank Mandiri, so that the sample is the entire population or a saturated sample. The observation period spanned ten years from 2011 to 2020. By applying panel data regression analysis, it was concluded that corporate governance and net interest margin had a positive and significant effect on profitability. The corporate governance, net interest margin and profitability had also a significant positive effect on firm value.

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