Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan dengan Financial Distress Sebagai Pemoderasi

Abstract

This study is motivated by the importance of implementing Good corporate governance (GCG) in enhancing firm value, particularly in the mining sector, which is characterized by high business risks, environmental challenges, and market volatility. Firm value serves as an important indicator for investors in assessing a company's prospects and sustainability. However, previous studies examining the relationship between GCG and firm value have produced inconsistent findings. The novelty of this study lies in investigating the moderating role of financial distress in the relationship between GCG, proxied by board size and institutional ownership, and firm value in mining companies. This study aims to analyze the effect of board size and institutional ownership on firm value and to examine whether financial distress moderates these relationships. A quantitative approach with an explanatory research design was employed. The study utilized secondary data obtained from the annual reports and financial statements of mining companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2023. The sample was selected using a purposive sampling method, resulting in 30 companies with a total of 120 observations. Data were analyzed using Moderated Regression Analysis (MRA) with the assistance of SPSS version 31. The results indicate that board size has a significant effect on firm value. In contrast, institutional ownership does not have a significant effect on firm value. Furthermore, the findings reveal that financial distress is unable to moderate the effect of either board size or institutional ownership on firm value. These findings imply that improvements in firm value are not solely determined by the number of board members or the level of institutional ownership, but also by the effectiveness of monitoring mechanisms, the quality of corporate governance practices, and the company’s ability to manage its financial condition. This study is expected to serve as a reference for companies and future researchers in developing studies related to Good corporate governance, financial distress, and firm value.