Year: 2026 | Month: May | Volume: 13 | Issue: 5 | Pages: 300-310
DOI: https://doi.org/10.52403/ijrr.20260525
The Effect of Good Corporate Governance on Firm Value with Earnings Management as a Mediating Variable in Banking Companies Listed on the Indonesia Stock Exchange (2020-2024)
Anastya Dwi Isti Astari1, Rina Br Bukit2, Isfenti Sadalia3
1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Anastya Dwi Isti Astari
ABSTRACT
This study aims to analyze the effect of good corporate governance on firm value, with earnings management as a mediating variable, in banking companies listed on the Indonesia stock Exchange during the period 2020-2024.
This research employs a purposive sampling technique, in which samples are selected based on specific criteria. Based on these criteria, 39 companies were selected, and when multiplied over a five-year observation period, a total of 195 observations were obtained. The data analysis technique used is path analysis, supported by SPSS version 27 software and the Sobel test to examine the mediating role.
The results indicate that institutional ownership has a significant effect on earnings management. Meanwhile, managerial ownership, frequency of audit committee meetings, and board independence do not have a significant effect on earnings management. Furthermore, managerial ownership, institutional ownership, frequency of audit committee meetings, board independence, and earnings management do not have a significant effect on firm value. In addition, earnings management does not mediate the relationships among managerial ownership, institutional ownership, the frequency of audit committee meetings, board independence, and firm value. These findings suggest that the mediating role of earnings management is not supported in this research model.
Keywords: good corporate governance, earnings management, firm value
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