The Impact of Corporate Governance Mechanism on Company Value of Those Listed on the Jakarta Islamic Index (JII): The Involvement of Financial Performance Moderating Role
- 10.2991/aer.k.201221.089How to use a DOI?
- Corporate Governance Mechanism, Financial Performance, Corporate Value
This study aims to identify the impact of Corporate Governance mechanism (proxied by independent commissioner, managerial ownership, and institutional ownership) on Company Value (proxied by Tobin’s Q), and how Financial Performance (proxied by Return on Asset, ROA) moderates the relationship. This study employed 67 samples of go public companies listed on the Jakarta Islamic Index (JII) from 2014 to 2018. The samples were chosen by purposes sampling technique. Path analysis using PLS-SEM (Partial Least Square Structural Equation Modelling) with the 6.0 version of WarpPls was used as a statistical analysis of data. The results show that independent commissioner (KomIn) has a significant negative impact on company value (Tobin’s Q), managerial ownership (KepMan) has an insignificant negative impact on Tobin’s Q, and institutional ownership (KepIn) has a significant positive impact on Tobin’s Q. Financial performance (ROA) positively moderates (strengthens) the significant impact of independent commissioner on Tobin’s Q, negatively moderates (weakens) the significant impact of managerial ownership on Tobin’s Q, and also negatively moderates (weakens) the significant impact of institutional ownership on Tobin’s Q.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Satrio Aji Pamungkas AU - Muhammad Muflih PY - 2020 DA - 2020/12/22 TI - The Impact of Corporate Governance Mechanism on Company Value of Those Listed on the Jakarta Islamic Index (JII): The Involvement of Financial Performance Moderating Role BT - Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020) PB - Atlantis Press SP - 537 EP - 544 SN - 2352-5401 UR - https://doi.org/10.2991/aer.k.201221.089 DO - 10.2991/aer.k.201221.089 ID - Pamungkas2020 ER -