Year: 2023 | Month: December | Volume: 10 | Issue: 12 | Pages: 476-486
DOI: https://doi.org/10.52403/ijrr.20231252
The Effects of Good Corporate Governance on Company Valuation with Profitability as a Moderating Variable in the Automotive Sub-Sector Companies and Their Components Listed on Indonesia Stock Exchange
Juli Liska1, Rina Br Bukit2, Endang Sulistya Rini3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Juli Liska
ABSTRACT
Company valuation is the sale value of a company as a business that is currently operating. There are many factors affecting company valuation, including public ownership, institutional ownership, audit committee and board of commissioners.
This quantitative research aims to analyze the effect of public ownership, institutional ownership, audit committee and board of commissioners on company valuation with profitability as a moderating variable in automotive and automotive component sub-sector companies listed on the IDX from the 2017-2022. The research population is automotive companies listed on the Indonesia Stock Exchange from 2017 to 2022, totaling 12 companies. The duration of the research is 6 years (2017-2022) and 72 observations are obtained. The data are analysed using linear regression analysis and interaction analysis techniques.
align="justify">The results prove that public ownership does not significantly affect company on valuation. Institutional ownership does not affect company valuation. Audit committee does not significantly affect company valuation. However, the board of commissioners has a significant positive effect on company valuation. Based on the results of the moderation regression interaction test, profitability cannot moderate the effect of public ownership on company valuation but it can moderate the effect of institutional ownership, audit committee and independent board of commissioners on company valuation.
Keywords: good corporate governance, company valuation, profitability
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