The mediating role of growth opportunity in good corporate governance-stock return relationship
Improving the welfare of its owner or shareholder and maximize shareholder value through increased firm’s value should be one of the goals in establishing a company. Consequently, it becomes essential for the company to continue to increase its value in order to retain the trust of its shareholders,...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-11-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9528/imfi_2017_03cont2_Wardhana.pdf |
| _version_ | 1811285024638500864 |
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| author | Rakha Wardhana Bambang Tjahjadi Yani Permatasari |
| author_facet | Rakha Wardhana Bambang Tjahjadi Yani Permatasari |
| author_sort | Rakha Wardhana |
| collection | DOAJ |
| description | Improving the welfare of its owner or shareholder and maximize shareholder value through increased firm’s value should be one of the goals in establishing a company. Consequently, it becomes essential for the company to continue to increase its value in order to retain the trust of its shareholders, for instance by conducting good corporate governance (GCG). On the other hand, from the owner’s point of view, it is important to not only evaluate the corporate governance, but also to take a look at firm’s growth opportunity, because it basically reflects the management’s productivity. Studies related to the influence of corporate governance on stock return have been extensively done before. Similarly, this research is related to the influence of growth opportunity on stock return. However, it is still difficult to find studies that combine these three variables, therefore this study aims to know the influence of good corporate governance on stock return directly and indirectly through firm’s growth opportunity by using sample data of 92 observation Corporate Governance Perception index lists in Indonesia Stock Exchange for 2010–2014. The analysis method of this research is the quantitative approach by hypothesis testing through path analysis performed with SmartPLS 3.0. The direct hypothesis result showed that: (1) good corporate governance did not have a significant influence on firm’s growth opportunity while; (2) it also had a negative influence and did not have a significant influence on stock return, and (3) firm’s growth opportunity had a significant influence on stocks return. However, the indirect hypothesis result showed that firm’s growth opportunity could not mediate the relationship between good corporate governance and stock return. |
| first_indexed | 2024-04-13T02:38:20Z |
| format | Article |
| id | doaj.art-4963fdf0256e418999413437a90e5b3b |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-04-13T02:38:20Z |
| publishDate | 2017-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-4963fdf0256e418999413437a90e5b3b2022-12-22T03:06:18ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582017-11-0114331332110.21511/imfi.14(3-2).2017.02 9528The mediating role of growth opportunity in good corporate governance-stock return relationshipRakha Wardhana0Bambang Tjahjadi1Yani Permatasari2Faculty of Economics and Business, Universitas AirlanggaFaculty of Economics and Business, Universitas AirlanggaFaculty of Economics and Business, Universitas AirlanggaImproving the welfare of its owner or shareholder and maximize shareholder value through increased firm’s value should be one of the goals in establishing a company. Consequently, it becomes essential for the company to continue to increase its value in order to retain the trust of its shareholders, for instance by conducting good corporate governance (GCG). On the other hand, from the owner’s point of view, it is important to not only evaluate the corporate governance, but also to take a look at firm’s growth opportunity, because it basically reflects the management’s productivity. Studies related to the influence of corporate governance on stock return have been extensively done before. Similarly, this research is related to the influence of growth opportunity on stock return. However, it is still difficult to find studies that combine these three variables, therefore this study aims to know the influence of good corporate governance on stock return directly and indirectly through firm’s growth opportunity by using sample data of 92 observation Corporate Governance Perception index lists in Indonesia Stock Exchange for 2010–2014. The analysis method of this research is the quantitative approach by hypothesis testing through path analysis performed with SmartPLS 3.0. The direct hypothesis result showed that: (1) good corporate governance did not have a significant influence on firm’s growth opportunity while; (2) it also had a negative influence and did not have a significant influence on stock return, and (3) firm’s growth opportunity had a significant influence on stocks return. However, the indirect hypothesis result showed that firm’s growth opportunity could not mediate the relationship between good corporate governance and stock return.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9528/imfi_2017_03cont2_Wardhana.pdfcorporate governancegrowth opportunitystock returns |
| spellingShingle | Rakha Wardhana Bambang Tjahjadi Yani Permatasari The mediating role of growth opportunity in good corporate governance-stock return relationship Investment Management & Financial Innovations corporate governance growth opportunity stock returns |
| title | The mediating role of growth opportunity in good corporate governance-stock return relationship |
| title_full | The mediating role of growth opportunity in good corporate governance-stock return relationship |
| title_fullStr | The mediating role of growth opportunity in good corporate governance-stock return relationship |
| title_full_unstemmed | The mediating role of growth opportunity in good corporate governance-stock return relationship |
| title_short | The mediating role of growth opportunity in good corporate governance-stock return relationship |
| title_sort | mediating role of growth opportunity in good corporate governance stock return relationship |
| topic | corporate governance growth opportunity stock returns |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9528/imfi_2017_03cont2_Wardhana.pdf |
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