Articles

The Influence of Good Corporate Governance on Firm Value before and during COVID-19 in Indonesia

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This study investigates the impact of independent commissioners, audit committees, institutional ownership, and managerial ownership on the firm value of Indonesian manufacturing companies, both before and during the COVID-19 pandemic. Employing a quantitative research design and associative research approach, our findings reveal a positive relationship between independent commissioners and firm value, supporting existing literature on the role of independent commissioners in enhancing corporate governance. Conversely, the analysis indicates a negative influence of audit committees on firm value, emphasizing the need for a balanced approach to their formation to avoid undue restrictions on managerial autonomy. The examination of institutional and managerial ownership’s effects on firm value yields inconclusive results, suggesting the need for further exploration. Additionally, our study evaluates the impact of the COVID-19 pandemic on firm value using a dummy variable and a t-test, revealing no significant change in values during the pandemic. The focus on the Indonesian manufacturing sector provides valuable context, suggesting potential sector-specific resilience to pandemic challenges. Overall, this research contributes nuanced insights into corporate governance dynamics and their resilience in the face of unprecedented global events.

The Determinants of Real Activity Manipulation

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This study aims to analyze the factors that influence real activity manipulation in corporations listed on the Indonesia Stock Exchange (IDX) during the 2016-2020 research period. A quantitative research method is designed in this research that collects secondary data from a company’s annual report. The sample used in this research is 25 manufacturing corporations with the number of corporations observed for 5 years as many as 125 manufacturing companies. The analytical method utilized in this research is the panel data regression method that selects one of the three best models to analyze data, and the best analytical model result is the Fixed Effect Model (FEM) approach. The results show that institutional ownership, free cash flow, and voluntary disclosure effect negatively on real activity manipulation in corporations listed on the IDX. The limitation of this research is only using the samples from manufacturing corporations so that it cannot generalize the results to all types of companies and the research period of only 5 years narrows the number of companies observed.