Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Effect of the Corporate Governance and Financing Decision on Financial Performance and Firm Value of the Banking Industry Listed on the Indonesian Stock Exchange

Author(s): Syahriyah Semaun

The aims of this research are: (1) to analyze the effect of corporate governance on financial performance; (2) to analyze the effect of financing decisions on financial performance; (3) to analyze the effect of corporate governance on firm value: (4) to analyze the effect of financing decisions on firm value; (5) to analyze the effect of financial performance on firm value. The population in this research is banking industry listed in Indonesian Stock Exchange 38 companies. Samples are 28 companies, in the period 2015 to 2019. The analysis technique in research used the program Structural Equation Modeling (SEM). Based on results of data analysis show that: (1) corporate governance has a significant negative effect on financial performance; (2) financing decisions have a significant positive effect on financial performance; (3) corporate governance have a negative not significant effect on firm value; (4) financing decisions have a significant positive effect on firm value; (5) financial performance have a positive not significant effect on firm value.

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