Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)

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The Effect of Corporate Governance Mechanism on Company Value with Earnings Quality as Mediation

Authors
Gracio Isaac Febrian Tenggono1, Lodovicus Lasdi1, *, Natalia Kristina1
1Accounting Department, Faculty of Business, Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia
*Corresponding author. Email: lodovicus@ukwms.ac.id
Corresponding Author
Lodovicus Lasdi
Available Online 12 December 2022.
DOI
10.2991/978-94-6463-076-3_53How to use a DOI?
Keywords
Corporate Governance; Firm Value; Quality of Reported Earnings
Abstract

Firm value is an investor's response to the company, usually associated with stock prices. Companies with high stock prices are considered to have high company values. This is because public interest can affect stock prices in the market. One of the factors that can increase public interest is the quality of reported earnings. Earnings will be called more qualified if the reported earnings follow the company's actual state. However, the reality is that reporting quality earnings is not easy. This is because there is a conflict of interest between the owner and the manager. Therefore, good corporate governance is expected to minimize these conflicts, so that reported earnings can be of higher quality and ultimately affect the public interest and company value. This study aims to examine and analyze the effect of the size of the board of directors, institutional ownership, managerial ownership, and independent commissioners on firm value with earnings quality as a mediating variable. The object of research is a manufacturing company listed on the Indonesia Stock Exchange (IDX) for the 2018–2020 period. The research sample consisted of 58 manufacturing companies selected by the purposive sampling technique. The research data analysis technique uses a path analysis model. The results showed that earnings quality could mediate the size of the board of directors and managerial ownership on firm value. However, earnings quality has not mediated institutional ownership and independent commissioners on firm value.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
12 December 2022
ISBN
10.2991/978-94-6463-076-3_53
ISSN
2352-5428
DOI
10.2991/978-94-6463-076-3_53How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Gracio Isaac Febrian Tenggono
AU  - Lodovicus Lasdi
AU  - Natalia Kristina
PY  - 2022
DA  - 2022/12/12
TI  - The Effect of Corporate Governance Mechanism on Company Value with Earnings Quality as Mediation
BT  - Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
PB  - Atlantis Press
SP  - 690
EP  - 707
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-076-3_53
DO  - 10.2991/978-94-6463-076-3_53
ID  - Tenggono2022
ER  -