The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia
Corporate governance is an interesting topic to discuss recently. Governance builds trust and predictability, hence generating comfort to investors. Companies that implement good corporate governance are expected to have a good financial performance to minimize agency problems and provide more bene...
| Main Authors: | , |
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| Format: | Article |
| Language: | Indonesian |
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Petra Christian University
2022-04-01
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| Series: | Jurnal Akuntansi dan Keuangan |
| Subjects: | |
| Online Access: | https://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/23648 |
| _version_ | 1818211166133944320 |
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| author | Galih Adinegara Sukmawati Sukamulya |
| author_facet | Galih Adinegara Sukmawati Sukamulya |
| author_sort | Galih Adinegara |
| collection | DOAJ |
| description |
Corporate governance is an interesting topic to discuss recently. Governance builds trust and predictability, hence generating comfort to investors. Companies that implement good corporate governance are expected to have a good financial performance to minimize agency problems and provide more benefits to shareholders. A corporate governance framework can determine the agency problem and its effect on shareholders' value. This study uses a random effect model estimation method. Good corporate governance in this study is measured with the corporate governance index (CGI) score and formed based on five sub-indexes. The company's market value is calculated by Tobin's Q ratio. The results of statistical tests show a positive relationship between the implementation of good corporate governance and its market value. Furthermore, this research shows how Indonesian banks listed in IDX from 2010 to 2019 implement good corporate governance practices as the index continues to increase every year.
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| first_indexed | 2024-12-12T05:28:10Z |
| format | Article |
| id | doaj.art-ac572e15bd7d411caceadf460a646f12 |
| institution | Directory Open Access Journal |
| issn | 1411-0288 2338-8137 |
| language | Indonesian |
| last_indexed | 2024-12-12T05:28:10Z |
| publishDate | 2022-04-01 |
| publisher | Petra Christian University |
| record_format | Article |
| series | Jurnal Akuntansi dan Keuangan |
| spelling | doaj.art-ac572e15bd7d411caceadf460a646f122022-12-22T00:36:24ZindPetra Christian UniversityJurnal Akuntansi dan Keuangan1411-02882338-81372022-04-0123210.9744/jak.23.2.83-94The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in IndonesiaGalih Adinegara0Sukmawati Sukamulya1Universitas Gadjah MadaManagement Department, Atma Jaya Yogyakarta University Corporate governance is an interesting topic to discuss recently. Governance builds trust and predictability, hence generating comfort to investors. Companies that implement good corporate governance are expected to have a good financial performance to minimize agency problems and provide more benefits to shareholders. A corporate governance framework can determine the agency problem and its effect on shareholders' value. This study uses a random effect model estimation method. Good corporate governance in this study is measured with the corporate governance index (CGI) score and formed based on five sub-indexes. The company's market value is calculated by Tobin's Q ratio. The results of statistical tests show a positive relationship between the implementation of good corporate governance and its market value. Furthermore, this research shows how Indonesian banks listed in IDX from 2010 to 2019 implement good corporate governance practices as the index continues to increase every year. https://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/23648Agency problemcompany’s market valuefinancial performancegood corporate governance |
| spellingShingle | Galih Adinegara Sukmawati Sukamulya The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia Jurnal Akuntansi dan Keuangan Agency problem company’s market value financial performance good corporate governance |
| title | The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia |
| title_full | The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia |
| title_fullStr | The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia |
| title_full_unstemmed | The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia |
| title_short | The Effect of Good Corporate Governance on the Market Value of Financial Sector Companies in Indonesia |
| title_sort | effect of good corporate governance on the market value of financial sector companies in indonesia |
| topic | Agency problem company’s market value financial performance good corporate governance |
| url | https://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/23648 |
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