Publisher

STIESASTIESA

Journal TSARWATICA (Islamic Economic, Accounting, and Management Journal)TSARWATICA (Islamic Economic, Accounting, and Management Journal) Abstract

This study aims to examine the effect of Good Corporate Governance on firm value, with financial performance as an intervening variable, in the banking sector listed on the Indonesian Sharia Stock Index (ISSI) for the 2022–2024 period. GCG in this study is measured by institutional ownership and an independent board of commissioners. Financial performance is proxied by Return on Assets (ROA), while firm value is proxied by Price to Book Value (PBV). This study uses a quantitative method with a purposive sampling technique to obtain a sample of Islamic banking companies that meet certain criteria. Data analysis was performed using multiple regression using SPSS version 25. The results show that Good Corporate Governance does not have a direct, significant effect on firm value. However, GCG has a significant effect on financial performance, and financial performance has been shown to have a positive effect on firm value. Thus, financial performance acts as a mediating variable in the relationship between GCG and firm value. These findings confirm that improves operational effectiveness and profitability, which ultimately can drive increased firm value. The novelty of this research lies in its focus on the Islamic banking sector, which is a member of the Islamic Financial Services Authority (ISSI) for the 2022–2024 period, thus providing up-to-date empirical evidence on the effectiveness of GCG implementation in creating corporate value in the Islamic capital market.

Conclusion

The research concludes that institutional ownership positively influences company value, while an independent board of commissioners does not significantly affect it.Furthermore, financial performance significantly impacts company value.However, the role of financial performance as a mediator between good corporate governance and company value is only supported by institutional ownership, not by the independent board of commissioners.These findings highlight the importance of strong corporate governance practices, particularly regarding institutional ownership, to enhance financial performance and ultimately drive company value in the Indonesian Islamic banking sector.

Future Research

Penelitian lanjutan perlu dilakukan dengan memperluas cakupan sampel tidak hanya pada sektor perbankan syariah, tetapi juga sektor lain yang terdaftar di Indeks Saham Syariah Indonesia (ISSI) untuk menguji generalisasi temuan. Selain itu, penelitian dapat menggali lebih dalam mengenai faktor-faktor lain yang memoderasi hubungan antara Good Corporate Governance, kinerja keuangan, dan nilai perusahaan, seperti budaya organisasi atau kualitas audit. Terakhir, studi longitudinal dapat dilakukan untuk mengamati dampak jangka panjang dari implementasi Good Corporate Governance terhadap kinerja dan nilai perusahaan, serta mengidentifikasi praktik terbaik yang dapat diadopsi oleh perusahaan syariah untuk meningkatkan tata kelola dan menciptakan nilai bagi pemangku kepentingan. Penelitian ini diharapkan dapat memberikan wawasan yang lebih komprehensif mengenai efektivitas Good Corporate Governance dalam konteks pasar modal syariah Indonesia.

References

1. Intellectual Capital and Firm Value: The Role of Financial Performance as Intervening Variable. intellectual... ijefm.co.in/v5i5/11.phpIntellectual Capital and Firm Value The Role of Financial Performance as Intervening Variable intellectual ijefm co in v5i5 11 php
2. The Effect Of Green Accounting, Financial Performance And CSR On Firm Value With Firm Size As An Intervening... doi.org/10.62872/xdsw2y62The Effect Of Green Accounting Financial Performance And CSR On Firm Value With Firm Size As An Intervening doi 10 62872 xdsw2y62
3. Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel... doi.org/10.55606/jumia.v2i1.2407Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel doi 10 55606 jumia v2i1 2407

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