Universitas Islam Malang Conference, ECONOMICS, BUSINESS, ENTREPRENEURSHIP & SOCIAL SCIENCES INTERNATIONAL CONFERENCE 2023

Font Size: 
THE IMPORTANT ROLE OF CORPORATE GOVERNANCE IN INCREASING COMPANY VALUE
Wike Wulandari Wulandari, Dwiyani Sudaryanti Sudaryanti, Dewi Dyah Fakhriyyah

Last modified: 2024-02-01

Abstract


Company value is essential for the owner, shareholder, investor, employee, etc. High company value indicates good company performance and impacts shareholder prosperity. Investors use company value as a company measure, which is often linked to share prices. This study analyzes Good Corporate Governance's (GCG) important role in increasing company value. The research methodology involves a literature review with articles about factors affecting the company's value. The findings of this study reveal that the size of the board of directors as a representative of corporate governance has a significant positive effect on firm value. At the same time, the findings related to the size of the board of commissioners as a representative of corporate governance have varying results, including significant positive, no effect, and simultaneous effects on company value. This research implies that all company lines must implement suitable corporate governance mechanisms to increase company value.

 

Keywords: Corporate Governance, Company Value, Board Size, Commissioner Size

Full Text: PDF