Title:
FINANCIAL PERFORMANCE ON FIRM VALUE WITH CORPORATE GOVERNANCE AS MODERATING VARIABLE

Authors:
Agus Widodo and Bambang Hadi Nugroho

Abstract:
This study aims to analyze the effect of financial performance on firm value with corporate governance as a moderating variable. This research method uses quantitative methods. Samples were taken using the purposive method. The sample in this study is the manufacturing sector companies listed on the Indonesia Stock Exchange for the 2016-2020 period, totaling 46 companies. The independent variables used are financial performance as a proxy for Return on Assets (RoA), the dependent variable is firm value as measured by Tobin's Q and the moderating variable is GCG (Good Corporate Governance) with a proxy for the size of the board of directors. The results of this study indicate that financial performance with ROA variable has no significant effect on firm value as measured by Tobins Q, GCG moderating variable with board of directors’ size proxy has a significant effect on moderating financial performance (ROA) on firm value.

Keywords:
Financial performance, RoA, GCG, Board of Directors, Value of the company

DOI:
http://dx.doi.org/10.37500/IJESSR.2022.5609