The Effect of GCG, Profitability, and Leverage Mechanism on Company Values in Manufacturing the Firm Listed on Bei 2015- 2017 Period(Study on Manufacturing Firms Listed on BEI 2015-2017 Period)
DOI:
https://doi.org/10.61841/m9hm9168Keywords:
Firm Value, Good Corporate Governance (GCG), Profitability, LeverageAbstract
The company's long-term goal is to maximize shareholder wealth. Maximizing shareholder wealth can be reached by maximizing the present value. This study aims to prove the influence of Mechanisme Good Corporate Governance (GCG), Profitability, and Leverage Against Firm Value on Manufacture Companies Listed on IDX Period 2015-1017. The population in this study is the annual report of companies listed on the IDX period 2015-2017. Sampling method with purposive sampling method, with some predetermined criteria, the number of samples is 113 manufacture companies. The data analysis technique used in this study is multiple linear regression analysis. The method of analysis used in this study is multiple linear regression. The results of this study simultaneously indicate a significant influence between GCG, profitability, and leverage to corporate value. And partially show GCG proxied by using an independent board of commissioners; the board of directors significantly influences the firm value. Profitability, which is proxied by using return on asset, return on equity, and leverage, significantly influences the firm value. However, GCG, which is proxyed using managerial ownership, audit committee, and leverage, shows no significant effect on firm value.
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