Research of Accounting and Governance
Vol. 2 No. 2 (2024): JULY 2024

Determinant Factors of Firm Value in Coal Mining Firms: Evidence from Indonesia

Cahyono, Koko (Unknown)
Nursanita, Nursanita (Unknown)



Article Info

Publish Date
28 Jul 2024

Abstract

This research investigates how firm value in coal mining companies is influenced by profitability, leverage, and corporate governance between 2014 and 2020. Utilizing a quantitative approach with a descriptive methodology, the study analyzed secondary data from 21 coal companies, totaling 147 data points, sourced from the Indonesian Stock Exchange (BEI). Findings reveal that Debt-to-Equity Ratio (DER) and the presence of an Independent Board of Commissioners positively affect firm value. Conversely, managerial ownership and the Audit Committee's impact on firm value were negligible, due to limited managerial stakes and inadequate audit committees. Return On Assets (ROA) did not affect firm value, likely due to significant data variation and decreasing trends. The study suggests that a robust corporate governance structure ensures informed decision-making and minimizes strategic errors. Management should focus on enhancing operational efficiency to boost profitability.

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Journal Info

Abbrev

rag

Publisher

Subject

Economics, Econometrics & Finance

Description

The Research of Accounting and Governance (RAG) is an open-access journal that applies theory developed from accounting and corporate governance research to actual academic-business conditions. Recognizing the intricate relationships between the many areas of business activity, RAG examines various ...