JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

This study aims to examine the effect of GCG mechanisms on firm value with earnings management as an intervening variable with empirical studies. The research approach is quantitative. Locus of research on banking SOEs listed on the Indonesia Stock Exchange in 2016-2021. Data collection techniques are through surveys using secondary data. The data analysis technique uses multiple linear regression with the help of Eviews 9.0 software. The results of the research show that Institutional Ownership, Managerial Ownership, and Independent Commissioners have on ROA has a negative and significant effect on DER, Total Assets partially have a positive and significant effect on Earnings Management. Institutional Ownership, Managerial Ownership, Independent Commissioner, ROA, Total Assets simultaneously have a positive effect on Profit Management. Institutional Ownership has a positive and significant effect on Firm Value. Managerial Ownership, and Independent Commissioners, partially have a negative and significant effect on Company Value. Total Assets, ROA, DER, Earnings Management partially have a negative and significant effect on Firm Value. Institutional Ownership, Managerial Ownership, Independent Commissioners, DER, Total Assets, and Profit Management simultaneously have a positive effect on Firm Value. Earnings Management does not mediate the influence of ownership, independent commissioners, ROA, DER, Size on Company Value.

KEYWORDS:

DER, GCG, Profit Management, Company Value, ROA, Size.

REFERENCES:

1) N. M., & Obeidat, G. S. (2016). The Relationship between the Stock Return and Financial Indicators (Profitability, Leverage): An Empirical Study on Manufacturing Companies Listed in Amman Stock Exchange. Journal of Social Sciences (COES&RJ-JSS), 5(3), 408–424. https://doi.org/10.25255/jss.2016.5.3.408.424

2) De Sousa, A. M., Noriller, R. M., Huppes, C. M., Lopes, A. C. V., & Meurer, R. M. (2018). The relationship between the macroeconomic variables and the stock returns in companies of the finance and insurance sector from the Latin American stock market. Journal Globalization, Competitiveness and Governance, 12(3), 20–30. https://doi.org/10.3232/GCG.2018.V12.N3.01

3) Drogalas, G., & Siopi, S. (2017). Risk management and internal audit: Evidence from Greece. Risk Governance and Control: Financial Markets and Institutions, 7(3), 104–110. https://doi.org/10.22495/rgcv7i3p10

4) Eksandy, A. (2018). The Influence of Good Corporate Governance on Financial Performance in Indonesian Syari'Ah Banking. Journal of Accounting: Scientific Accounting Studies (JAK), 5(1), 1. https://doi.org/10.30656/jak.v5i1.498

5) Fathonah, A. N. (2016). The Influence of the Implementation of Good Corporate Governance on Finance

6) Febrianto, G. N., Riyadi, S., & Nugroho, M. (2018). Influence Analysis Of Macroeconomics, Risk Management, Good Corporate Governance, Earnings, Capitals Toward Company Performances And Company Values In National Private Public Bank of Go Public Foreign Exchange Listed in Indonesian Stock Exchange. TRTF International Symposium Proceedings 2018, 46–51. http://repository.untagsby.ac.id/id/eprint/1490

7) Gamayuni, R.R. (2018). Factors affecting internal audit function effectiveness (internal auditor competence and objectivity, management support and organizational culture) ar local government. International Journal Monetary Economics and Finance, 11(3), 179- 191.

8) Ghozali, I. (2012). Multivariate Analysis Applications with the IBM SPSS Program. Edition 1. Semarang: Diponegoro University Publishing Agency.

9) Iqbal, M. (2015). Panel Data Regression (2) "Analysis Stage", https://dosen.perbanas.id/regresi-datapanel-2-phase- analysis

10) Kalsum, U., Candera, M., Zuhriyah, Fitantina, Kholillah, & Kosim, B. (2020). The Effect of Corporate Governance Mechanisms on Financial Performance with Profit Management as an Intervening Variable in BUMN Companies on the IDX. Change Agent For Management Journal, 4(2), 1–17.

11) Khoirunnisa, & Karina, A. (2021). The Influence of Institutional Ownership, Independent Board of Commissioners, Audit Committee and Board of Directors on Company Financial Performance (Empirical Study of BUMN Companies Listed on the Indonesia Stock Exchange in 2017-2019). In Journal of Accounting Science (Vol. 19, Issue 2, pp. 1–28).

12) Kuncoro, M. (2011). Quantitative Methods: Theory and Applications to Business & Economics (Edition). UPP STIM YKPN.

13) Mertzanis, C., Balntas, V., & Pantazopoulos, T. (2020). Internal auditor perceptions of corporate governance in Greece after the crisis. Qualitative Research in Accounting and Management, 17(2), 201–227. https://doi.org/10.1108/QRAM- 07-2018-0045

14) Muda, I., Maulana, W., Siregar, H. S., & Indra, N. (2018). The Analysis of Effects of Good Corporate Governance on Earnings Management in Indonesia with Panel Data Approach. Iranian Economy

15) Ojo, A. (2019). Internal Audit and Risk Management in Nigeria's Public Sector. International Journal of Business & Law Research, 7(2), 1–15.

16) Pranoto, T. (2021) Understanding the Performance of Fading SOEs in 2020. Can be downloaded at v https://bumninc.com/memahami-kinerja-pudar-bumn-tahun-2020/?more=3

17) Saat, Nur AM and Kallamu, Basiru SK. 2014. Ownership Structure, Independent Chair and Firm Performance. Pertanika Journal Social & Humanities. Vol. 22. 141-162.

18) Sakti, I. (2018). Panel Data Regression Analysis Using Eviews. Paper at Esa Unggul University, West Jakarta. can be downloaded at https://studylibid.com/doc/4286917/analysis-regressi-data-panel-using Eviews.

19) Sandjaja, B., & Heriyanto, Al. (2011). Research Guide. Revised edition print. Jakarta: Publisher Library Achievement.

20) Santi, F. (2021) Panel Data Regression Model and Eviews Applications. Available for download at https://www.google.com/search?q=pdf+analytics+data+panel&oq=pdf+data+panel&aqs=chrome.3.6 9i57j0i22i30l3.9685j0j7&sourceid=chro me&ie=UTF-8

21) Scandizzo, S. (2005). Risk Mapping and Key Risk Indicators in Operational Risk Management. Economics Notes by Banca Monte dei Paschi di Siena SpA, 34(2), 231-256.

22) Sembiring, S., & Trisnawati, I. (2019). Factors Affecting Firm Value. Journal of Business and Accounting, 21(1a-2(, 173- 194.

23) Now, U., & Bougie, R. (2016). Research Methods for Business A Skill-Building Approach (Seventh Ed). John Wiley & Sons, Inc.

24) Sugiyono. (2013). Mixed Methods (Print to). Alphabet Publishers.

25) Tampubolon, M. N. H. (2019). Risk Management, Internal Control, Corporate Governance and Financial Performance of SOEs with the Maturity Level of the Internal Audit Department as Moderator. Journal of Accounting & Taxation Research (JRAP), 6(02), 69–80. https://doi.org/10.35838/jrap.v6i02.1247

26) Widarjono, A. (2015). Applied Multivariate Analysis with SPSS, AMOS, and SMART PLS Programs.

27) Second edition. Yogyakarta: UPP STIM YKPN

28) Wiranata, Yulius Ardy and Yeterina Widi Nugrahanti. 2013. Effect of Ownership Structure on the Profitability of Manufacturing Companies in Indonesia. Journal of Accounting and Finance. Vol. 15(1). 15-26.

29) Yinusa, O. G., Odusanya, I. A., & Olowofela, O. E. (2017). Trade-off Theory of Optimal Capital Structure and Adjustment Towards Long Run Targets. Journal of Accounting and Management, 7(2), 174–181.