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Original Research

THE ROLE OF FINANCIAL PERFORMANCE AS A MEDIATION VARIABLE IN GOOD CORPORATE GOVERNANCE ON THE VALUE OF ENVIRONMENTALLY BASED COMPANIES IN INDONESIA

MAULIDINA NUR BAITI 1, and HERSUGONDO HERSUGONDO 2.

Vol 18, No 09 ( 2023 )   |  DOI: 10.5281/zenodo.8394156   |   Author Affiliation: Universitas Diponegoro, Indonesia 1,2.   |   Licensing: CC 4.0   |   Pg no: 945-955   |   Published on: 25-09-2023

Abstract

Good Corporate Governance can have an influence on financial performance and company value. The implementation of appropriate Good Corporate Governance can influence related parties or society. Besides, it can provide information related to financial performance and the value of the company itself. Good financial performance and company value are the views of investors when making an investment. The purpose of this study was to determine the effect of Good Corporate Governance on company value either directly or through financial performance, as well as the effect of Good Corporate Governance on financial performance, and how financial performance affects company value. This study used a sample of companies listed on the SRI KEHATI index 2018 - 2022 as many as 25 companies. The results of this study stated that there was a significant positive effect on Good Corporate Governance both directly and through financial performance. Furthermore, there was also a significant positive effect of Good Corporate Governance on financial performance and a significant positive effect on financial performance on company value.


Keywords

Good Corporate Governance, Financial Performance, Company Value.