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Effect of Financial Performance, Good Corporate Governance and Corporate Size on Corporate Value in Food and Beverages

Author

Listed:
  • Elon Manurung

    (Sekolah Tinggi Ilmu Ekonomi, Y.A.I. Jakarta, Indonesia)

  • Effrida Effrida

    (Sekolah Tinggi Ilmu Ekonomi, Y.A.I. Jakarta, Indonesia)

  • Andreas James Gondowonto

    (Sekolah Tinggi Ilmu Ekonomi, Y.A.I. Jakarta, Indonesia)

Abstract

This study aims to determine the effect of financial performance, good corporate governance, and company size as an independent variable on company value as a dependent variable on food and beverage companies listed on the Indonesia Stock Exchange in 2015-2017. This study uses a quantitative approach. Sources of data in this study came from the company's financial statements obtained on the website page www.idx.co.id. The population in this study were 26 manufacturing companies in the food and beverage industry which were listed on the Indonesia Stock Exchange in 2015-2017. Based on the specified sample selection criteria, there are 16 companies that meet these criteria and qualify as a research sample. Based on the results of the chow test and the Hausman test, the most appropriate model used in the panel data regression of this study is the fixed effect model. Based on the results of regression in the company used as a sample in this study showed the adjusted R2 value of 0.977623. This means that 97.7623% of the dependent variable is the value of the company can be explained by the independent variables, namely financial performance, institutional ownership, managerial ownership and company size. While the remaining 2.2377% is explained by other factors outside the independent variables in the study.

Suggested Citation

  • Elon Manurung & Effrida Effrida & Andreas James Gondowonto, 2019. "Effect of Financial Performance, Good Corporate Governance and Corporate Size on Corporate Value in Food and Beverages," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 100-105.
    • Handle: RePEc:eco:journ1:2019-06-12
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    References listed on IDEAS

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    Cited by:

    1. Nurtika Ekawati & Unggul Purwohedi & Ari Warokka, 2021. "The Influence of Risk Management, Third-Party Funds and Capital Structure on Banking Sector Financial Performance in Indonesia and Thailand with Corporate Governance as Moderating Variable in 2015-201," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 71-80, December.
    2. Purwanto Purwanto & Isnain Bustaram & Subhan Subhan & Zef Risal, 2020. "The Effect of Good Corporate Governance on Financial Performance in Conventional and Islamic Banks: An Empirical Studies in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 1-6.
    3. Lee, Michael T. & Raschke, Robyn L., 2023. "Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations?☆," Journal of Business Research, Elsevier, vol. 155(PB).

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    More about this item

    Keywords

    Financial Performance; Good Corporate Governance; Company Size; The value of the company;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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