The The Influence of Corporate Governance Perception Index, Profitability Ratio and Firm Size to Company Value (CGPI And Listed Companies On The IDX)

Eva Safina Rose,Suko Raharjo,Ardian Widiarto,Siti Arbainah

doi:10.52728/ijtc.v2i3.238

Eva Safina Rose, Suko Raharjo + Show 2 more

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https://doi.org/10.52728/ijtc.v2i3.238

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Abstract

This research is based on the problem of what factors can affect the value of company in the form of book value of shares (PBV) in companies that are ranked CGPI and listed on the IDX 2014-2018. CGPI itself is a Corporate Governance index given by the IICG institution to participating companies in accordance with the results of research on corporate governance mechanisms. This study aims to analyze the effect of the Corporate Governance Perception Index, Profitability Ratios, and Company Size on Firm Value in companies that are ranked CGPI and listed on the IDX during the 2014-2018 period with a sample of 11 companies using purposive sampling technique. The results of Multiple Linear Regression Statistical Analysis show that (1) The effect of CGPI on Book Value of Shares (PBV) is positive and significant (2) The effect of ROA on Book Value of Shares (PBV) does not have a positive and significant effect (3) Effect of ROE on Firm Value (PBV) is positive and significant (4) The influence of Company Size on Company Value (PBV) does not have a positive and significant effect (5) CGPI, Return On Assets, Return On Equity, and Company Size simultaneously have an influence on Firm Value.

Highlights

The company's goal is to maximize the value of the company
This study aims to analyze the effect of the Corporate Governance Perception Index, Profitability Ratios, and Company Size on Firm Value in companies that are ranked CGPI and listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period with a sample of 11 companies using purposive sampling technique
The results of Multiple Linear Regression Statistical Analysis show that (1) The effect of CGPI on Book Value of Shares (PBV) is positive and significant (2) The effect of Return on Asset (ROA) on Book Value of Shares (PBV) does not have a positive and significant effect (3) Effect of Return on Equity (ROE) on Firm Value (PBV) is positive and significant (4) The influence of Company Size on Company Value (PBV) does not have a positive and significant effect (5) CGPI, Return On Assets, Return On Equity, and Company Size simultaneously have an influence on Firm Value

Summary

Introduction

The company's goal is to maximize the value of the company. Salvatore (1989) [1] states that companies exist because the company's economy produces production and distribution and provides great benefits for employers, workers, and other resource owners. Firm value is related to the company's stock performance. This statement is supported by Maksum (2005) which states that the value of the company in the eyes of investors increases as a result of their increased trust in the company. One of the things that can affect company value is Good Corporate Governance. IICG in collaboration with the National Committee on Companies conducts research studies and assessments on the implementation of good corporate governance, both public and private, banking, and State-Owned Enterprises in Indonesia. The results are published nationally and internationally by the SWA magazine and 175 | Ilomata International Journal of Tax & Accounting

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