Audit Committee, Financial Performance and their Roles in Determining Company Value: An Empirical Study
Vita Adhikawati *
Accounting Department, STIESIA, Indonesia.
Lilis Ardini
Accounting Department, STIESIA, Indonesia.
David Efendi
Accounting Department, STIESIA, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: This study aims to determine the effect of good corporate governance and financial performance on company value with company size as a moderating variable.
Study Design: This study investigate the effect of good corporate governance and financial performance on company value with company size as a moderating variable.
Place and Duration of Study: Pharmaceutical companies listed on the IDX for the 2019-2023 period.
Methodology: The Research method used is quantitative research, an approach that focuses on numerical data collection and statistical analysis. The population in this study were pharmaceutical companies listed on the IDX for the 2019-2023 period between January 2019 - December 2023 and comprised 50 companies. I suggest adding information regarding the research period and the specific indicators used to measure 'Financial Performance' with ROA and 'Company Value with The proxy for company value is price to book value, which is the value of the company's assets after deducting the value of its liabilities.
Results: This study found that good corporate governance and financial performance have a positive effect on firm value. Firm size does not moderate the effect of good corporat. Firm size significantly moderates the positive effect of profitability on firm value.
Conclusion: The study implications for investors, management, and regulators. Investors can understand the factors that influence company value when making investment decisions.
Keywords: Audit committee, profitability, firm value, firm size, financial performance