Good Corporate Governance, Corporate Value and Financial Performance of Jakarta Islamic Index Group Companies on Indonesia Stock Exchange

Sat Yudha Dahana¹; Anna Sofia Atichasari ¹; Della Maretha^*2& Astry Destiana Rhosyta³
¹ Lecture University of Islam Syekh Yusuf, Tangerang Indonesia
²Lecture University of Borobudur, Jakarta, Indonesia
³Student Faculty Economics of University Islam Syekh Yusuf, Tangerang, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2023.6511

Abstract

This study aimed to determine the effect of Good Corporate Governance (GCG) on firm value with Financial Performance (FP) as an intervening variable. This research is a type of quantitative research using secondary data. The population in this study was 48 companies listed on the Jakarta Islamic Index in 2015-2019. The sampling technique used the purposive sampling method, so the samples obtained were 8 companies multiplied by 5 years, namely 40 observation samples. This research is a data processing tool using IBM SPSS Statistics version 25 using descriptive statistics, classical assumption test, hypothesis testing, and path analysis. The results of this study are institutional ownership effect on firm value, managerial ownership has no effect on firm value, institutional ownership has an effect on FP, managerial ownership has no effect on FP, FP has an effect on firm value, institutional ownership has no effect on firm value with FP as an intervening variable, Managerial ownership has no effect on firm value with FP as the intervening variable.

Keywords: Good Corporate Governance, Corporate Value and Financial Performance.

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