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.

Determinants of Company Going Concern: Empirical Evidence in the Times of Covid-19 in Developing Capital Markets

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During the COVID-19 pandemic, various corporate sectors in Indonesia were affected by the pandemic, including manufacturing companies. Where during the pandemic many companies are threatened with their business continuity. This observation plan is to understand the influence of managerial ownership, financial distress and leverage on going concern companies with profitability as a moderating variable. In this study going concern was measured by determining the Scott R formula. The research methodology for testing and data analysis was using MRA (Moderating Regression Analysis). The population in this observation is the manufacturing industry listed on the Indonesia Stock Exchange (IDX) in 2020. The sample collection was carried out using the purposive sampling method with a total sample of 179 companies in 2020. The results of this observation prove that financial distress has a negative effect on going concern and leverage. Positive impact on going concern. Meanwhile, managerial ownership has no impact on going concern. Authorized profitability with return on assets is able to strengthen the influence of financial distress and leverage on going concern. Observational findings in this observation normative accounting theory elevate plans, skills and then determine how to meet the recognized goals. Normative accounting theory includes decisions about what to do to fulfill the desires that have been mentioned. The implication of this research is that the implementation of Pecking order theory explains that industries that get high profits will use relatively small liabilities because the industry will tend to set money in it. The normative theory here tries to explain the explanations that are usually conveyed to the users of the accounting explanations that will be presented.