Research Paper
Year: 2019 | Month: July | Volume: 6 | Issue: 7 | Pages: 253-261
Mechanism of Corporate Governance of Manufacturing Companies on Company Value Where Quality of Profit as A Moderating Variable
Saleh Sitompul, Dina Rosmaneliana, Rebecca Evadine Siahaan
Department of Accounting, STIE ITMI Medan North Sumatera, Indonesia
Corresponding Author: Saleh Sitompul
ABSTRACT
This study aims to examine the Corporate Governance mechanism, which consists of institutional ownership, managerial ownership, and independent commissioners influencing the value of the company, where earnings quality is a moderating variable. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2016-2018. By using the purposive sampling method, collected a sample of 279 observations from 93 manufacturing companies. By using multiple regression analysis as analysis data, the results of the research in the first equation show that simultaneous institutional ownership, managerial ownership, independent commissioners, and earnings quality jointly influence and significantly affect firm value. Partially institutional ownership and managerial ownership have a significant effect on firm value, while independent commissioners have no effect on firm value. In the second equation shows that earnings quality is not a moderating variable between the relationship of institutional ownership, managerial ownership, and independent commissioners to the value of the company.
Key words: Corporate Governance Mechanisms, Institutional Ownership, Managerial Ownership, Independent Commissioners, Earnings Quality, Firm Value.
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