IMPACT OF CORPORATE GOVERNANCE ON THE COST OF CAPITAL IN INDONESIA WITH NET PROFIT MARGIN AS INTERVENING VARIABLES
DOI:
https://doi.org/10.20527/jwmthemanagementinsightjournal.v12i1.295Keywords:
Agency Theory, Cost of Capital, GCG, Net Profit Margin, WACCAbstract
This research was conducted to analysed The Impact of Corporate Governance On the cost of Capital in Indonesia with Net Profit Margin as Intervening Variables in Kompas100 Index Companies on the Indonesia Stock Exchange. The population in this study is the Kompas100 Index Company on Indonesia Stock Exchange (BEI) in 2022. All populations will be used in this research. The data used is secondary data by collecting annual reports of the Kompas100 Index Company on the Indonesia Stock Exchange (BEI) in 2022 (IDX). The results show that Audit Committee Size, Board of Commissioners Size, Company Size, and Debt to Equity Ratio have a significant effect on Net Profit Margin, and Net Profit Margin has a significant effect on Cost of Capital which is calculated using Weight Average Cost of Capital (WACC) on the Kompas100 Index Company listed on the Indonesia Stock Exchange (IDX) for the 2022 period.
Downloads
References
Adams, D., Adams, K., Ullah, S., & Ullah, F. (2019). Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries. Resources Policy, 61, 128–140.
Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. S. (2020). The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51, 101083.
Alareeni, B. (2018). Does corporate governance influence earnings management in listed companies in Bahrain bourse? Journal of Asia Business Studies.
Bhagat, S., & Bolton, B. (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58, 142–168.
Ciftci, I., Tatoglu, E., Wood, G., Demirbag, M., & Zaim, S. (2019). Corporate governance and firm performance in emerging markets: Evidence from Turkey. International Business Review, 28(1), 90–103.
Danoshana, S., & Ravivathani, T. (2019). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. SAARJ Journal on Banking & Insurance Research, 8(1), 62–67.
Freeman. (1984). Strategic Management: A Stakeholder Perspective. Pitman.
Fund, I. M. (2018). World Economic Outlook Database January 2018. https://www.imf.org/en/Publications/SPROLLS/world-economic-outlook-databases#sort=%40imfdate descending
Gaur, A. S., Ma, H., & Ge, B. (2019). MNC strategy, knowledge transfer context, and knowledge flow in MNEs. Journal of Knowledge Management.
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal.
Gumanti, T. A. (2020). Manajemen Keuangan Strategik. Penerbit Universitas Terbuka.
Hakim, A. (2020). Metodologi Penelitan. Universitas Terbuka.
Hermiyetti, H. and Manik, E.N. (2013), “The influence of good corporate governance mechanism on earnings management: empirical study in Indonesian Stock Exchange listed company for periods of 2006–2010”, Indonesian Capital Market Review.
Jia, N., Huang, K. G., & Man Zhang, C. (2019). Public governance, corporate governance, and firm innovation: An examination of state-owned enterprises. Academy of Management Journal, 62(1), 220–247.
Krenn, M. (2014). Decoupling as a sustainable firm response to pressures for convergence and divergence in corporate governance: The case of codes of good corporate governance. Journal of Management Policy and Practice, 15(4), 103.
Laksmi, A. C., & Kamila, Z. (2018). The effect of good corporate governance and earnings management to corporate social responsibility disclosure. Academy of Accounting and Financial Studies Journal, 22(1), 1–16.
Madura, J. (2020). International Financial Management (14th Editi). Nelson Education.
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research.
Mäkelä, K., Barner-Rasmussen, W., Ehrnrooth, M., & Koveshnikov, A. (2019). Potential and recognized boundary spanners in multinational corporations. Journal of World Business, 54(4), 335–349.
Mashitoh, H. and Irma (2013), “The ınfluence of corporate governance ımplementation toward bank performance (empirical study on banks listed in Indonesia Stock Exchange)”, International Conference on Law, Business and Governance Vol. 1.
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297.
Muda, I., Maulana, W., Sakti Siregar, H., & Indra, N. (2018). The analysis of effects of good corporate governance on earnings management in Indonesia with panel data approach. Iranian Economic Review, 22(2), 599–625.
Rantao, K.-O. (2019). The role of MNCs as a channel of the resource ‘curse’: insights from gas-rich Mozambique. University of Pretoria.
Rebecca, Y., Siregar, S.V. (2014). Pengaruh Corporate Governance Index, Kepemilikan Keluarga, dan Kepemilikan Institusional Terhadap Biaya Ekuitas dan Biaya Utang: Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI. Simposium Nasional AKuntansi XVII Lombok.
Rompas, Gisela Prisilia. (2013). Likuiditas Solvabilitas Dan Rentabilitas Terhadap Nilai Perusahaan Bumn Yang Terdaftar Dibursa Efek Indonesia. Jurnal EMBA Vo.1 No.3 Hal. 233-354.
Ruwanti, G., Chandrarin, G., & Assih, P. (2019). Corporate social responsibility and earnings management: The role of corporate governance. Humanities & Social Sciences Reviews, 7(5), 1338–1347.
Sampurna, R. H. (2019). A critical review of the impact of multinational corporations (MNCS) on Indonesian economy. JISPO Jurnal Ilmu Sosial Dan Ilmu Politik, 9(1), 221–233.
Shapiro, A. C. (2019). Multinational Financial Management. WILEY.
Sugiyono. (2013). METODE PENELITIAN KUANTITATIF, KUALITATIF DAN R & D (Alfabeta (ed.)).
Tukic, N. (2018). The role of MNCs in China and Brazil’s foreign policy towards developing states in Africa. Stellenbosch: Stellenbosch University.
Uwuigbe, U., Peter, D. S., & Oyeniyi, A. (2014). The effects of corporate governance mechanisms on earnings management of listed firms in Nigeria. Accounting and Management Information Systems, 13(1), 159.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 JWM (JURNAL WAWASAN MANAJEMEN)
This work is licensed under a Creative Commons Attribution 4.0 International License.
