Firm Performance in Control Corporate Governance

Abstract

This study analyzes the influence of corporate governance on state-owned companies listed on the Indonesia Stock Exchange. Where this research data uses purposive sampling method for data collection. And this data sampling was taken from state companies listed on the Indonesia Stock Exchange in the period 2012 to 2020. And the measurement of corporate governance uses 4 indicators of managerial ownership, audit committee, and board size. Corporate performance was measured by three indicators of agency, accounting, and market perspectives. The multivariate analysis used was PLS-SEM. Based on empirical findings, it was revealed that a significant effect was shown by leverage and board size on agency costs, while an insignificant effect was indicated by managerial ownership and the audit committee. Leverage and agency costs have a significant effect on return on assets. In contrast, managerial ownership, audit committees, and board size show no significant effect. Significantly, audit committee, leverage, agency cost, and return on assets affect firm value. Meanwhile, board size and managerial ownership have no effect.