Profitability in Linking Governance Structure and Firm Value
The governance structure of SOEs is distinctive, with board directors managing while the audit committee, independent commissioners, and shareholders supervise. This study evaluates SOEs' success by analyzing profitability as a mediator between corporate governance and firm value. The study foc...
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| Format: | Article |
| Language: | English |
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Universitas Tarumanagara
2025-05-01
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| Series: | Jurnal Akuntansi |
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| Online Access: | https://ecojoin.org/index.php/EJA/article/view/2421 |
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| author | Dini Wahjoe Hapsari Roy Budiharjo Dudi Pratomo Hanif Yazid |
| author_facet | Dini Wahjoe Hapsari Roy Budiharjo Dudi Pratomo Hanif Yazid |
| author_sort | Dini Wahjoe Hapsari |
| collection | DOAJ |
| description | The governance structure of SOEs is distinctive, with board directors managing while the audit committee, independent commissioners, and shareholders supervise. This study evaluates SOEs' success by analyzing profitability as a mediator between corporate governance and firm value. The study focused on SOEs listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, with 100 data observations obtained via purposive sampling. Panel data analysis revealed that the audit committee, independent commissioners, and institutional ownership significantly influence profitability. However, board directors do not significantly impact profitability or firm value, and overall governance structure does not notably affect firm value. Profitability mediates the effects of the audit committee, independent commissioners, and share ownership on firm value but not the directors’ influence. These results indicate that the government's role as the largest shareholder heavily influences the determination and role of board directors in SOEs. |
| format | Article |
| id | doaj-art-e530093a5d3a4205a5d81eda5d539cf8 |
| institution | OA Journals |
| issn | 1410-3591 2549-8800 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Universitas Tarumanagara |
| record_format | Article |
| series | Jurnal Akuntansi |
| spelling | doaj-art-e530093a5d3a4205a5d81eda5d539cf82025-08-20T02:38:14ZengUniversitas TarumanagaraJurnal Akuntansi1410-35912549-88002025-05-0129220622410.24912/ja.v29i2.24212405Profitability in Linking Governance Structure and Firm ValueDini Wahjoe Hapsari0https://orcid.org/0000-0002-1496-1000Roy Budiharjo1Dudi Pratomo2Hanif Yazid3Department of Accounting, School of Economics and Business, Telkom University, BandungDepartment of Accounting, School of Economics and Business, Telkom University, BandungDepartment of Accounting, School of Economics and Business, Telkom University, BandungDepartment of Accounting, School of Economics and Business, Telkom University, BandungThe governance structure of SOEs is distinctive, with board directors managing while the audit committee, independent commissioners, and shareholders supervise. This study evaluates SOEs' success by analyzing profitability as a mediator between corporate governance and firm value. The study focused on SOEs listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, with 100 data observations obtained via purposive sampling. Panel data analysis revealed that the audit committee, independent commissioners, and institutional ownership significantly influence profitability. However, board directors do not significantly impact profitability or firm value, and overall governance structure does not notably affect firm value. Profitability mediates the effects of the audit committee, independent commissioners, and share ownership on firm value but not the directors’ influence. These results indicate that the government's role as the largest shareholder heavily influences the determination and role of board directors in SOEs.https://ecojoin.org/index.php/EJA/article/view/2421governance structure; profitability; firm value; soe. |
| spellingShingle | Dini Wahjoe Hapsari Roy Budiharjo Dudi Pratomo Hanif Yazid Profitability in Linking Governance Structure and Firm Value Jurnal Akuntansi governance structure; profitability; firm value; soe. |
| title | Profitability in Linking Governance Structure and Firm Value |
| title_full | Profitability in Linking Governance Structure and Firm Value |
| title_fullStr | Profitability in Linking Governance Structure and Firm Value |
| title_full_unstemmed | Profitability in Linking Governance Structure and Firm Value |
| title_short | Profitability in Linking Governance Structure and Firm Value |
| title_sort | profitability in linking governance structure and firm value |
| topic | governance structure; profitability; firm value; soe. |
| url | https://ecojoin.org/index.php/EJA/article/view/2421 |
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