The Effect of Financial Performance on Company Value with Good Corporate Governance as a Moderation Variable

DOI

10.2991/978-2-494069-49-7_142How to use a DOI?

Keywords

Customize Financial Performance; Company Value; Good Corporate Governance

Abstract

Numerous studies demonstrate that financial performance has a significant impact on a company’s value. The progress of science, however, revealed that Good Corporate Governance tends to have a significant effect in the value of organizations whose financial performance is influential. This study’s objective is to examine the relationship between financial performance and the value of a company, with good corporate governance serving as a moderating variable. The observation period for this quantitative investigation was between 2017 and 2020. This study utilizes secondary data. Analytical instruments employing Descriptive Statistics, Inferential Statistics, Partial Least Square Model Analysis (PLS), Model – Outer Model Evaluation (Convergent Validity Test and Reliability Test), Model Evaluation – Inner Model, and Hypothesis test. Using Smart PLS, each variable is analyzed. This study is anticipated to provide information on the extent to which the function of Good Corporate Governance adds to the value of the company, among other things. The results of this research will be able to provide suggestions for how each firm could approach the application of Good Corporate Governance in its annual report. The results indicated that financial success had no meaningful impact on the company’s worth. Good corporate governance cannot increase the correlation between a company’s financial performance and its market value. This renders Good Corporate Governance incapable of balancing financial success and corporate 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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TY  - CONF
AU  - Eko Adi Widyanto
AU  - Maylisa Dwi Wulandari
AU  - Meylinda Ade Safitri
AU  - Kinanti Sekar Larasati
PY  - 2022
DA  - 2022/12/29
TI  - The Effect of Financial Performance on Company Value with Good Corporate Governance as a Moderation Variable
BT  - Proceedings of the 3rd Borobudur International Symposium on Humanities and Social Science 2021 (BIS-HSS 2021)
PB  - Atlantis Press
SP  - 839
EP  - 844
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-49-7_142
DO  - 10.2991/978-2-494069-49-7_142
ID  - Widyanto2022
ER  -