The Effect of GCG, Profitability, and Leverage Mechanism on Company Values in Manufacturing the Firm Listed on Bei 2015-2017 Period(Study on Manufacturing Firms Listed on BEI 2015-2017 Period)

11Silviana, 2Diana Sari, 3A. Fadjar, 4Nuryaman

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Abstract:

The company has long-term goal is to maximize shareholder wealth. Maximizing shareholder wealth can be reached by maximizing the present value. This study aims to prove the influence of Mechanisme Good Corporate Governance (GCG), Profitability, and Leverage Against Firm Value on Manufacture Companies Listed on IDX Period 2015-1017. The population in this study is the annual report of companies listed on the IDX period 2015-2017. Sampling method with purposive sampling method, with some predetermined criteria, the number of samples is 113 manufacture companies. Data analysis techniques used in this study is multiple linear regression analysis. The method of analysis used in this study using multiple linear regression. The results of this study simultaneously indicate a significant influence between GCG, Profitability, and Leverage to Corporate Value. And partially show GCG proxied by using independent board of commissioners, the board of directors significantly influence the firm value. Profitability which proxied by using Return on Asset, Return on Equity and Leverage significantly influence the firm value. However, GCG which is proxied using managerial ownership, audit committe, and leverage shows no significant effect on firm value.

Keywords:

Firm Value, Good Corporate Governance (GCG), Profitability, and Leverage.

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages3142-3149