DOI: 10.5176/2010-4804_2.4.263
Authors: Fadjar O.P. Siahaan
Abstract:
The objectives of this research are to examine (1) the effect of the good corporate governance mechanism (audit committee, size of the commissioner’s board, and proportion of independent commissioner’s board) on firm value. (2) The effect of the leverage on firm value, (3) The effect of the firm size on firm value, and (4) The effect of good corporate governance mechanism (audit committee, size of the commissioner’s board, and proportion of independent commissioner’s board), leverage, and firm size on firm value. The population in this research is the entire manufacture firm which listed in IDX 2007-2011. Sampling technique used in this research is judgment sampling, with the sum of the sample 28 firm for 5 years (2007-2011). Double linier regression is used as data analysis technique, both t test and F test. The results of this research are (1) Good corporate governance’s mechanism, which including the size of commissioner’s board affect on the firm value, meanwhile audit committee and the proportion of independent commissioner’s board doesn’t affect on the firm value; (2) Leverage doesn’t affect on the firm value; (3) firm size affects on the firm value; and (4) good corporate governance mechanisms (audit committee, size of the commissioner’s board, and proportion of independent commissioner’s board), leverage, and firm size affect on the firm value.
Keywords: dFirm size, Firm value, Good corporate governance mechanism, Leverage
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