THE EFFECT OF CORPORATE GOOD GOVERNANCE MECHANISM WITH CORPORATE VALUES (Case Study on Coal Mining Sector Sub-Sector Company for 2013-2017 Period)

Abstract

The value of the company becomes the main goal for every company, both go
puplic companies and not go public, but there are many factors that can influence the
value of the company and one of them is good corporate governance. Coal mining subsector
companies that are the object of analysis of Good Corporate Governance
mechanism which consists of managerial ownership, institutional ownership, board size,
proportion of independent board of directors and audit committee are the variables in
the formulation of the problem in this study on the value of the company proxied by
Price to Book Value, as well as with Corporate Social Responsibility as a moderating
variable.
Based on the analysis that has been done, this study uses descriptive analysis,
classical assumption test and interaction test. The results of this study prove that
managerial ownership and audit committee have a significant positive effect on firm
value, then institutional ownership, the size of the board of directors and the proportion
of independent board of directors has no significant positive effect on firm value. In
moderating variables CSR is only able to become a pure moderator in the influence of
the audit committee on peer value, while in the influence of managerial ownership,
institutional ownership, board size and the proportion of independent board of
commissioners on the value of the company, CSR is not able to become a pure
moderator.
Keywords: Good Corporate Governance mechanism, company value, Price to
book Value, Corporate Social Responsibility