Sharia Oikonomia Law Journal
Vol. 1 No. 2 (2023)

The Role of Corporate Governance and Financial Performance on the Value of ISSI Indexed Food and Beverage Companies in Indonesia

Sukma Aulia Rahma (Institut Agama Islam Negeri Kudus)
Silva Maulida Nur (Institut Agama Islam Negeri Kudus)
Devi Dwi Anggraini (Institut Agama Islam Negeri Kudus)
Kunasari Kunasari (Institut Agama Islam Negeri Kudus)
Riyan Andni (Institut Agama Islam Negeri Kudus)
Manuela Sironi (Ethiopian Civil Service University)



Article Info

Publish Date
06 Aug 2023

Abstract

This study comprises food and beverage firm listed on the ISSI index for the year 2017 through 2021 and is driven by the impact of corporate governance and financial performance on company value on the Indonesia Stock Exchange (IDX). The purpose of this study was to investigate the relationship between financial success measured by ROA (return on Asset) and ROE (Return on Equity) and Managerial Ownership (MO), Institutional Ownership (IO), Independent Commissioners (IC), and Audit Commissioners (AC), all of which are factors in good corporate governance. The methode used is quantitative axplanatory using multiple linear regression analysis and sampling using purposive sampling with reference to the two theories applied to research which consist of planned signaling theory and agency relationship theroy. There is the application of Good Corporate Governance in the analysis of a company’s finances and there are important components in the form of Return of Asset (ROA), Return of Equity (ROE), Good Corporate Governance and Financial Performance, according to Managerial Ownership (MO), Institutional Ownership (IO), Independent Commissioners (IC), and the Audit Committee (AC), can enhance a company’s worth. Despite having a favorable impact and not being statistically significant, return on assets, managerial ownership, institutional ownership, and independent commissions all have positive effects.

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Journal Info

Abbrev

solj

Publisher

Subject

Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Sharia Oikonomia Law Journal discusses various issues in the fields of Economic Law, Islamic Economics & Business Dispute Resolution, Contemporary Economic Law, Sharia Economic Law, Islamic Business Law, Islamic Business Ethics, Islamic Socio-Economy/Welfare System, Sharia Business Management, ...