¹Muhammad Fauzan Baihaqi,²Sutrisno

^1,2Management Department – Universitas Islam Indonesia

This study aims to examine the effect of good corporate governance mechanisms consisting of managerial ownership (KM), audit committee (KA), board of commissioners (DK), and board of directors (DD) on firm value (PBV) and financial performance (ROA) as moderating variable. In this study the population used is a banking company listed on the Indonesia Stock Exchange (IDX). The number of samples collected was 15 companies within a 5 year research period. The selected sample was carried out using a purposive sampling technique. The results showed that managerial ownership has a positive and significant effect on firm value, audit committee has no significant effect on firm value, the board of commissioners has no significant effect on firm value, the board of directors has a positive and significant effect on firm value, financial performance can moderate the effect of managerial ownership on firm value, financial performance does not moderate the effect of the audit committee on firm value, financial performance does not moderate the effect of the board of commissioners on firm value, financial performance moderates the effect of the board of directors on firm value.

managerial ownership, audit committee, board of commissioners, firm value, price to book value, return on assets

1) Abbasi, M., Kalantari, E., & Abbasi, H. (2012). Impact of Corporate Governance Mechanisms on Firm Value Evidence from the Food Industry of Iran. Journal of Basic and Applied Scientific Research, 2(5), 4712–4721.

2) Abdel-Azim, M. H., & Soliman, S. (2020). Board of directors’ characteristics and bank performance: Evidence from the egyptian banking sector. Journal of Governance and Regulation, 9(4), 116–125. https://doi.org/10.22495/JGRV9I4ART10

3) Alsagr, N., Belkhaoui, S., & Aldosari, A. (2018). The effect of corporate governance mechanisms on bank performance evidence from Saudi banking sector. Asian Economic and Financial Review, 8(8), 1111–1125. https://doi.org/10.18488/journal.aefr.2018.88.1111.1125

4) Arouri, H., Hossain, M., & Muttaakin, ohammad B. (2011). Ownership Structure, Corporate Governance and Bank Performance: Eviden form GCC Countries. Corporate Ownership & Control, 8(3), 365–372.

5) Asare, N., Muah, P., Frimpong, G., & Anyass, I. A. (2022). Corporate board structures, financial performance and stability: evidence from banking markets in Africa. Journal of Money and Business. https://doi.org/10.1108/jmb-12-2021-0071

6) Babić, V., Nikolić, J., & Simić, M. (2020). Board Structure and Bank Performance: Evidence From Serbian Banking Sector. Facta Universitatis, Series: Economics and Organization, 17(1), 57–68. https://doi.org/10.22190/fueo191006005b

7) Doğan, B., & Ekşi, İ. H. (2020). The effect of board of directors characteristics on risk and bank performance: Evidence from Turkey. Economics and Business Review, 6(3), 88–104. https://doi.org/10.18559/ebr.2020.3.5

8) El-Chaarani, H., Abraham, R., & Skaf, Y. (2022). The Impact of Corporate Governance on the Financial Performance of the Banking Sector in the MENA (Middle Eastern and North African) Region: An Immunity Test of Banks for COVID-19. Journal of Risk and Financial Management, 15(2), 0–21. https://doi.org/10.3390/jrfm15020082

9) Filip, F., Vesna, M., & Kiril, S. (2014). Corporate Governance and Bank Performance: Evidence from Macedonia. Corporate Governance, EA, 47(1), 76–99.

10) Harjito, A., Martono, A., & Tohrin, A. (2022). Fundamental of Financial (2nd ed.). Jakarta: Ekonisia Publisher.

11) Indriastuti, M., Suhendi, C., & Hanafi, R. (2020). The Role of Corporate Governance Mechanism in Enhancing Firm Value, 135(Aicmbs 2019), 167–170. https://doi.org/10.2991/aebmr.k.200410.025

12) Kakar, S. K., Ali, J., Bilal, M., Tahira, Y., Tahir, M., Bahadar, N., ... Aziz, T. (2021). Corporate Governance, Risk Management, and Bank Performance: Does Type of Ownership Matter? Journal of Financial Risk Management, 10(03), 342–366. https://doi.org/10.4236/jfrm.2021.103020

13) Kong, Y., Famba, T., Kurauone, O., Chituku-Dzimiro, G., & Sun, H. (2020). Corporate governance mechanisms, ownership and firm value: Evidence from listed chinese firms. International Journal of Financial Studies, 8(2), 1–26. https://doi.org/10.3390/ijfs8020020

14) Kryeziu, N., & Hoxha, E. (2021). Factors affecting on bank’s profitability: the case of 19 Euro-Area countries. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 9(1), 1–8. https://doi.org/10.22437/ppd.v9i1.12165

15) Nikolić, J., Nielsen, J. E., & Peković, J. (2022). Board Structure and Bank Performance: The Mediating Role of Intellectual Capital. Naše Gospodarstvo/Our Economy, 68(2), 28–42. https://doi.org/10.2478/ngoe-2022-0009

16) Nuryana, Y., & Dwi Surjandari, A. (2019). The Effect of Good Corporate Governance Mechanism, and Earning Management on Company Financial Performance. Global Journal of Management and Business Research, 19(1), 2–14.

17) Nuswantara, D. A., Carolina, N. D. S., & Krisprimandoyo, D. A. (2020). Corporate Governance Mechanism and Profitability (Indonesia Banking Company Case). International Jounral of Economics, Business and Management Research, 4(09), 31–39.

18) Oleiwi, A. T., Ali, M., Jassim, S. H., Nadhim, M. H., Gueme, G. M., & Bujang, N. (2019). The relationship between credit risk management practices and profitability in malaysian commercial bank`s. International Journal of Engineering and Advanced Technology, 8(5), 53–59. https://doi.org/10.35940/ijeat.E1007.0585C19

19) Purwitaningsari, A. I., & Fidiana, F. (2021). Pengaruh Mekanisme Corporate Governance Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Moderasi. Jurnal Ilmu dan Riset Akuntansi (JIRA), 10(3).

20) Rahman, A. N. A. A., & Reja, B. A. F. M. (2015). Ownership Structure and Bank Performance. Journal of Economics, Business and Management, 3(5), 483–488. https://doi.org/10.7763/joebm.2015.v3.232

21) Rivai, V., Sudarto, B. S., & Veitzal, A. P. (2013). Commercial Bank Management. Jakarta: Grafindo Perkasa.

22) Rosiana, A., & Mahardhika, A. S. (2021). Pengaruh Good Corporate Governance dan Intellectual Capital Terhadap Kinerja Keuangan pada Perusahaan Perbankan. Jurnal SIKAP (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 5(1), 76. https://doi.org/10.32897/jsikap.v5i1.332

23) Suhartanti, T., & Asyik, N. F. (2015). Pengaruh Corporate Governance Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Moderating. Jurnal Ilmu Dan Riset Akuntansi (JIRA), 4(8).

24) Widiatmoko, J. (2020). Corporate Governance Mechanism and Corporate Social Responsibility on Firm Value. Relevance: Journal of Management and Business, 3(1), 13–25. https://doi.org/10.22515/relevance.v3i1.2345

25) Yanti, E., & Patrisia, Di. (2019). The impact of corporate governance mechanisms on Firm Value. Advances in Econpmics, Business Amd Management Research, 97, 588–595.

VOLUME 06 ISSUE 07 JULY 2023

There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.