The Role of Corporate Governance Mechanism in Enhancing Firm Value

Indriastuti, Maya; Suhendi, Chrisna; Hanafi, Rustam

doi:10.2991/aebmr.k.200410.025

Cited by 2 publications

(4 citation statements)

References 8 publications

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“…The results of this study support the first hypothesis which states that managerial ownership has a positive effect on firm value. These results are in line with research conducted by Indriastuti et al, (2020) and Abbasi et al, (2012) which states that managerial ownership has a positive and significant effect on firm value, so that H1 is accepted.…”

Section: The Effect Of Good Corporate Governance Mechanism On Firm Va...supporting

confidence: 90%

“…Managers who are also shareholders will of course align their interests as managers with their interests as shareholders. The research results of Indriastuti et al, (2020) showed that managerial ownership has a positive and significant effect on firm value. Based on the description above, the development of the hypothesis derived is: H1: Managerial ownership has a positive effect on firm value.…”

Section: Hypotheses Development Managerial Ownership and Corporate Va...mentioning

confidence: 98%

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The Effect of Good Corporate Governance Mechanism on Firm Value with Financial Performance as a Moderation Variable

Baihaqi¹,

Sutrisno²

2023

IJMRA

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This study aims to examine the effect of good corporate governance mechanisms consisting of managerial ownership (KM), audit committee (KA), board of commissioners (DK), and board of directors (DD) on firm value (PBV) and financial performance (ROA) as moderating variable. In this study the population used is a banking company listed on the Indonesia Stock Exchange (IDX). The number of samples collected was 15 companies within a 5 year research period. The selected sample was carried out using a purposive sampling technique. The results showed that managerial ownership has a positive and significant effect on firm value, audit committee has no significant effect on firm value, the board of commissioners has no significant effect on firm value, the board of directors has a positive and significant effect on firm value, financial performance can moderate the effect of managerial ownership on firm value, financial performance does not moderate the effect of the audit committee on firm value, financial performance does not moderate the effect of the board of commissioners on firm value, financial performance moderates the effect of the board of directors on firm value.

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Section: The Effect Of Good Corporate Governance Mechanism On Firm Va...supporting

confidence: 90%

Section: Hypotheses Development Managerial Ownership and Corporate Va...mentioning

confidence: 98%

The Effect of Good Corporate Governance Mechanism on Firm Value with Financial Performance as a Moderation Variable

Baihaqi¹,

Sutrisno²

2023

IJMRA

View full text Add to dashboard Cite

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“…The study results by Putra (2023) show that the higher the level of independence of the board of commissioners, the stronger the oversight function of managers motivated by achieving their profits. This is supported by the study by Indriastuti et al (2020), who stated that because independent commissioners are thought to reduce agency conflicts, their proportion has a beneficial impact on business value (Bernhard & Veny, 2024;Hidayat & Muliasari, 2020). Thus, the presence of independent commissioners is expected to be able to supervise tax aggressiveness policies to consider investor interests still and comply with applicable tax regulations.…”

Section: Literature Reviewmentioning

confidence: 91%

“…Therefore, the independent commissioner is needed to supervise the decisions and policies made by managers, especially in tax planning policies. According to Indriastuti et al (2020), a high proportion of independent commissioners is also accompanied by an increase in firm value as they are considered to minimize managers' conflicts of interest. Study findings by Bernhard & Veny (2024) and Hidayat & Muliasari (2020) also explain that the role of independent commissioners can reduce company tax aggressiveness.…”

Section: Introductionmentioning

confidence: 99%

The Moderating Role of Independent Commissioner in Relationship between Tax Aggressiveness and Firm Value

Shidqi,

Darmawan,

Ramadhan

et al. 2024

Educoretax

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Tax aggressiveness poses agency problems within companies. This is due to the differing interests between investors and management. Independent commissioners play a crucial role in ensuring that the decisions made by management align with investor interests. The research aims to a further investigation of the moderation role of independent commissioners on tax aggressiveness actions undertaken by management from the investors' perspective. The sample consisted of 185 companies in the non-cyclical consumer sector listed on the Indonesia Stock Exchange (BEI) during the years 2018-2022. This research utilizes a quantitative method with a multiple linear regression model approach. The findings of the study indicate that tax aggressiveness has a positive effect on firm value, signaling that tax planning activities by management are still perceived as not overly aggressive and are in line with investor interests. The study's findings also show that independent commissioners are unable to moderate the negative impact of tax aggressiveness on firm value. This indicates that the role of independent commissioners has not yet been able to prevent tax aggressiveness actions that are not aligned with investor interests. This research fills a gap in previous studies that did not consider the role of independent commissioners as supervisors of management in decision-making. The implications of this research are that companies need to enhance the quality of independent commissioners through strengthening the selection process and there is a need for strengthened tax regulations that encourage companies to pay taxes.

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The Role of Corporate Governance Mechanism in Enhancing Firm Value

Cited by 2 publications

References 8 publications

The Effect of Good Corporate Governance Mechanism on Firm Value with Financial Performance as a Moderation Variable

The Effect of Good Corporate Governance Mechanism on Firm Value with Financial Performance as a Moderation Variable

The Moderating Role of Independent Commissioner in Relationship between Tax Aggressiveness and Firm Value

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