Abstract
Manufacturing companies are chosen as the object of research because manufacturing companies listed on the Indonesia Stock Exchange (IDX) each year are developing and consist of various industrial sub-sectors so as to reflect the overall capital market reaction. This research aims to find out the effect of profitability and the size of the company on the value of the company with good corporate governance (GCG) as a moderator variable, as well as whether good corporate governance (GCG) is able to moderate the relationship between profitability and the size of the company to the value of the company. The population in the study was a company. The population in the study is a Manufacturing company listed on the Indonesia Stock Exchange (IDX) in the period 2018-2020. Samples collected using the purposive sampling method totaled 31 companies determined as samples. The methods used in this study are descriptively quantitative, and the nature of the research is explanatory. The data collection techniques used are documentation as well as the types and sources of data used are secondary data. The study used partial least square (PLS) data analysis methods. The results showed that profitability affects the value of the company, the size of the company has no effect on the value of the company, Good Corporate Governance (GCG) is not able to moderate the relationship between profitability and the size of the company to the value of the company.
Highlights
Manufacturing companies are companies engaged in the raw material management industry into finished goods that are ready to be used or sold to consumers
Based on statistics of the Central Statistics Agency (BPS) for Indonesia's economic growth in the first quarter of 2020, the manufacturing industry sector still contributed the most to the structure of national gross domestic product (GDP) up to 19.98% followed by large-retail trade; car-motorcycle repair by 13.20% : agriculture, forestry and fisheries by 12.84%; and construction by 10.70%
Descriptive statistical results can be explained as follows: 1. Profitability variables using ROE (X1) indicators have an average value of 2.124 Minimum value of 0.0006 in PT Chitose International in 2020 and maximum value of 2,244 in PT Merk Tbk in 2018 and standard deviation of 3,393 2
Summary
Manufacturing companies are companies engaged in the raw material management industry into finished goods that are ready to be used or sold to consumers. Based on the industry classification set by the Indonesia Stock Exchange called Jakarta Stock Exchange Industrial Classification manufacturing companies consist of the basic industrial and chemical sectors, the multiindustry sector, and the consumer goods industry sector. Manufacturing companies are the most listed companies on the Indonesia Stock Exchange (IDX). More than 190 manufacturing companies were listed on the Indonesia stock exchange in 20182020 which were grouped into several industry sub-categories. Based on statistics of the Central Statistics Agency (BPS) for Indonesia's economic growth in the first quarter of 2020, the manufacturing industry sector still contributed the most to the structure of national gross domestic product (GDP) up to 19.98% followed by large-retail trade; car-motorcycle repair by 13.20% : agriculture, forestry and fisheries by 12.84%; and construction by 10.70%. During the first half of 2020, the total value of shipments of manufacturing products made up 60.76 billion US dollars or accounted for 79.52% of all national export figures which reached 76.41 billion US dollars
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