Effect of Good Corporate Governance Dimension Implementation on Market Value of Equity and its Implication on Stock Return of Banking, Mining, and Manufacturing Firms Listed in the Indonesia Stock Exchange (IDX)
International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

ISSN: 2319-7064



Downloads: 201

Research Paper | Accounting | Indonesia | Volume 8 Issue 5, May 2019

Effect of Good Corporate Governance Dimension Implementation on Market Value of Equity and its Implication on Stock Return of Banking, Mining, and Manufacturing Firms Listed in the Indonesia Stock Exchange (IDX)

Witasari, Toto Sugiharto

Good Corporate Governance is a major concern to support the operational activities of the company. In the current development of Corporate Governance Perception Index is the assessment result of the implementation of Good Corporate Governance which has an important role in increasing the trust of shareholders to the company so can be expedited investment flow. This study aims to analyze the effect of GCG dimension implementation using CGPI consisting of self-assessment, documentation, paper report, and observation on stock return through market value of equity. The data used are secondary data from CGPI research reports, annual financial reports, and Yahoo finance in period 2011 to 2015. The selected sample companies are 9 companies consisting of 5 banking, 3 mining, and 1 manufacturing listed in The Indonesia Stock Exchange (IDX). The samples size is 45 samples selected as study objects based on three criteria which have been determined by the research purpose. This study uses path analysis. The results showed that GCG dimension implementation includes self-assessment, documentation, paper report, and observation affect the market value of equity both partially and simultaneously. Then the market value of equity affects stock return. It can be concluded that GCG dimension implementation affects stock return through market value of equity both partially and simultaneously where observation has dominant contribution followed by documentation, self-assessment and paper reports.

Keywords: CGPI, GCG, Self-Assessment, Documentation, Paper Report, Observation, Market Value of Equity, Stock Return, and Path Regression Analysis Path Analysis

Edition: Volume 8 Issue 5, May 2019

Pages: 229 - 236

Share this Article

How to Cite this Article?

Witasari, Toto Sugiharto, "Effect of Good Corporate Governance Dimension Implementation on Market Value of Equity and its Implication on Stock Return of Banking, Mining, and Manufacturing Firms Listed in the Indonesia Stock Exchange (IDX)", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20197505, Volume 8 Issue 5, May 2019, 229 - 236

Enter Your Email Address




Similar Articles with Keyword 'GCG'

Downloads: 131

Research Paper, Accounting, Indonesia, Volume 8 Issue 8, August 2019

Pages: 2206 - 2210

Application of Good Corporate Governance Principles in Lembaga Perkreditan Desa (Concept of Local Financial Institutions in Bali)

Ni Nyoman Ayu Suryandari, I Dewa Made Endiana, Ida Ayu Ratih Manuari

Share this Article

Downloads: 152

Research Paper, Accounting, Indonesia, Volume 7 Issue 12, December 2018

Pages: 673 - 679

Analysis of Effect of Good Corporate Governance and Corporate Social Responsibility on the Company Performance: Case Studies of Manufacturing Company in Indonesia

Muhammad Wisnu Girindratama

Share this Article

Similar Articles with Keyword 'Documentation'

Downloads: 105

Case Studies, Accounting, Indonesia, Volume 9 Issue 7, July 2020

Pages: 1535 - 1540

Analysis Implementation of Accounting for Sharia Insurance Transactions and Presentation of Sharia Financial Statements (Study on the Sharia General Insurance Industry)

Imam Rosyadi, Wiwik Utami

Share this Article

Downloads: 132

Research Paper, Accounting, Indonesia, Volume 7 Issue 12, December 2018

Pages: 1056 - 1060

Private Investment as Moderation of Regional Original Income on Government Performance

Agus Nisfur Romdioni, Harryanto, Sanusi Fattah

Share this Article

Similar Articles with Keyword 'Observation'

Downloads: 140

Research Paper, Accounting, Indonesia, Volume 8 Issue 6, June 2019

Pages: 1159 - 1163

Analysis of Effect of Financial Reporting Aggressiveness Tax

Ayu Desita Sari, Dr. Alwan Sri K, Dr. Yosefa Sayekti

Share this Article

Downloads: 145

Research Paper, Accounting, Indonesia, Volume 6 Issue 8, August 2017

Pages: 1168 - 1174

Understanding of Village Apparatus on Implementation Accounting Villages

Muhammad Syaifullah

Share this Article



Top