The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms
Purpose: This research examines the impact of good corporate governance (GCG) and dividend policy on the firm value of non-financial companies listed on the Indonesian Stock Exchange (IDX). Method: The study focuses on 803 non-financial firms listed on the IDX during 2021 to 2023. From this populat...
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business
2025-01-01
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| Series: | Journal of Enterprise and Development |
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| Online Access: | https://journal.uinmataram.ac.id/index.php/jed/article/view/12768 |
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| author | Herfiana Astrilia Iwan Kusmayadi |
| author_facet | Herfiana Astrilia Iwan Kusmayadi |
| author_sort | Herfiana Astrilia |
| collection | DOAJ |
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Purpose: This research examines the impact of good corporate governance (GCG) and dividend policy on the firm value of non-financial companies listed on the Indonesian Stock Exchange (IDX).
Method: The study focuses on 803 non-financial firms listed on the IDX during 2021 to 2023. From this population, a sample of 45 firms was selected using a purposive sampling method. The research utilized secondary data derived from financial statements of the sampled firms and employed panel data regression analysis conducted with EViews 12 software.
Result: The findings reveal that institutional ownership significantly and positively affects firm value. Conversely, managerial ownership exerts a significant negative impact on firm value. Meanwhile, the proportion of independent commissioners and dividend policy show a positive but statistically insignificant effect on firm value.
Practical Implications for Economic Growth and Development: The study highlights that good corporate governance, particularly institutional ownership, can enhance firm value and potentially driving economic growth by improving market confidence and investment. Additionally, understanding the relationship between dividend policy and firm value can inform better financial strategies that foster long-term stability and growth in non-financial sectors.
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| format | Article |
| id | doaj-art-33c58191a78647399fb70f6805e538e8 |
| institution | Kabale University |
| issn | 2715-3118 2685-8258 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business |
| record_format | Article |
| series | Journal of Enterprise and Development |
| spelling | doaj-art-33c58191a78647399fb70f6805e538e82025-01-23T08:37:19ZengUniversitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and BusinessJournal of Enterprise and Development2715-31182685-82582025-01-017110.20414/jed.v7i1.12768The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial FirmsHerfiana Astrilia0Iwan Kusmayadi1University of Mataram, IndonesiaUniversity of Mataram, Indonesia Purpose: This research examines the impact of good corporate governance (GCG) and dividend policy on the firm value of non-financial companies listed on the Indonesian Stock Exchange (IDX). Method: The study focuses on 803 non-financial firms listed on the IDX during 2021 to 2023. From this population, a sample of 45 firms was selected using a purposive sampling method. The research utilized secondary data derived from financial statements of the sampled firms and employed panel data regression analysis conducted with EViews 12 software. Result: The findings reveal that institutional ownership significantly and positively affects firm value. Conversely, managerial ownership exerts a significant negative impact on firm value. Meanwhile, the proportion of independent commissioners and dividend policy show a positive but statistically insignificant effect on firm value. Practical Implications for Economic Growth and Development: The study highlights that good corporate governance, particularly institutional ownership, can enhance firm value and potentially driving economic growth by improving market confidence and investment. Additionally, understanding the relationship between dividend policy and firm value can inform better financial strategies that foster long-term stability and growth in non-financial sectors. https://journal.uinmataram.ac.id/index.php/jed/article/view/12768good corporate governancedividend policyfirm valuenon-financial firms |
| spellingShingle | Herfiana Astrilia Iwan Kusmayadi The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms Journal of Enterprise and Development good corporate governance dividend policy firm value non-financial firms |
| title | The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms |
| title_full | The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms |
| title_fullStr | The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms |
| title_full_unstemmed | The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms |
| title_short | The Impact of Corporate Governance and Dividend Policy on Firm Value in Indonesian Non-Financial Firms |
| title_sort | impact of corporate governance and dividend policy on firm value in indonesian non financial firms |
| topic | good corporate governance dividend policy firm value non-financial firms |
| url | https://journal.uinmataram.ac.id/index.php/jed/article/view/12768 |
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