Petra International journal of Business Studies (IJBS)
Vol. 5 No. 2 (2022): DECEMBER 2022

Does Profitability Mediate the Influence of Corporate Governance on Firm Value?

Niken Wulandari (Universitas Muhammadiyah Surakarta)
Imronudin Imronudin (Universitas Muhammadiyah Surakarta)
M. Farid Wajdi (Universitas Muhammadiyah Surakarta)
Ihwan Susila (Universitas Muhammadiyah Surakarta)



Article Info

Publish Date
15 Dec 2022

Abstract

This study examines the effect of corporate governance on firm value with profitability as an intervening variable. This study uses a sample of banking companies listed on the Indonesia Stock Exchange in 2016-2020. The sampling technique used was the purposive sampling technique. This type of research is quantitative with path analysis using the software Eviews 9. The results of this study indicate that: 1) Independent commissioners and institutional ownership have no significant effect on the profitability variable, while the board of directors, public ownership, and managerial ownership have a significant positive effect on profitability. 2) Profitability has a significant positive effect on firm value. 3) Public ownership and managerial ownership have a significant positive effect on firm value, while independent commissioners, board of directors, and institutional ownership have no significant effect on firm value. 4) Independent commissioners and institutional ownership have no significant effect on firm value through profitability. Meanwhile, the board of directors, public ownership, and managerial ownership positively and significantly affect firm value through profitability.

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Journal Info

Abbrev

ijbs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Petra IJBS (Petra International Journal of Business Studies, ISSN: 2621-6426) is a peer-reviewed journal published under the Master of Management program, Faculty of Economics, Petra Christian University (MM FE UKP). The journal serves as a vessel for exchanging business knowledge to scholars and ...