Influence Governance, Financial Policy, Macro Fundamental, To Corporate Performance And Firm Value: Evidence From Indonesia Capital Market
Author(s)
Hersugondo , Andi Kartika , Cahyani Nuswandari ,
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Abstract
Agency theory has led to a new paradigm in financial theory, the manager is responsible for maintaining the market share to the maximum value. Governance and financial policies are controlable internal factors which cannot directly determine the performance of the company, because there are uncontrolable macro fundamental factors, such as macro-economic, social, cultural, demographic and environmental,and political factors, factors of government and law, and technology, and the complex and wide-ranging competitionsare big influence on the success of the company management. The value of the company which will be reflected in the value of stocks is not onlyconcerned with the intrinsic value alone, but also the expectations and the company's ability to increase the value of the wealth in the future time. The purpose of this study is to create a model which canhopefully help investors in making the decision to invest in the stock market in addition to consideration of technical aspects that are commonly used. The data in this study came from the publication of the Indonesia Stock Exchange in 2009-2013 with a total sample of 1547.By using a statistical program package EVIEWS, the model created can hopefully help investors to assess which companies have good prospects primarily on increasing the company's value, so that the funds invested will hopefully bring benefits. The study found that not allindependent variables viewed/treated partially hadsignificant impacts on the performance and value of companies. The effect of those independent variables significant at α 5% was at the variables of the number of commissioners and the number of independent commissioners.Meanwhile, the BI rate variable was significant at α 10% for the company's performance. On the test of Company's Value viewed/treated partially, the independent variables that affected the dependent variableswere the stock index, exchange rate, number of Independent Commissioners, Public Ownership and the Number of Directors. Other variables, however, had no significant effects. The tests of conformity on the models of company's performance and company's value, both were created by using Fit with empirical evidence met the models of conformity (goodness of fit) at a significance level of less than 1 percent ( sig-t = 0,000). But the regression model had a prob value (F-stat) under 5%. It means thatthe models created can be used as fit regression models, and at the same time they can be used as tools to predict dependent variables.
Keywords
Governance, Financial Policy, MacroFundamental, Corporate Performance, Value
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