THE INFLUENCE OF GOOD CORPORATE GOVERNANCE ON FIRM VALUE BEFORE AND DURING COVID-19 IN INDONESIA

• Main Author: Khan, Farhanullah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/81910
• Institution: Institut Teknologi Bandung

This study investigates the impact of independent commissioners, audit committees, institutional ownership, and managerial ownership on the firm value of Indonesian manufacturing companies, both before and during the COVID-19 pandemic. Employing a quantitative research design and associative research approach, this research unveils compelling findings that shed light on the intricate interplay between corporate governance mechanisms and firm performance, our findings reveal a positive relationship between independent commissioners and firm value, supporting existing literature on the role of independent commissioners in enhancing corporate governance. Conversely, the analysis indicates a negative influence of audit committees on firm value, emphasizing the need for a balanced approach to their formation to avoid undue restrictions on managerial autonomy. The examination of institutional and managerial ownership's effects on firm value yields inconclusive results, suggesting the need for further exploration. Additionally, our study evaluates the impact of the COVID-19 pandemic on firm value using a dummy variable and a t-test, revealing no significant change in values during the pandemic, This intriguing outcome underscores the adeptness of Indonesian manufacturing firms in navigating the challenges posed by the pandemic. It implies that there may be industry-specific factors at play, contributing to their resilience during times of adversity. Consequently, our research contributes to a deeper comprehension of how businesses strategize and adapt amidst monumental global events like the COVID-19 pandemic and also by focusing our inquiry on the Indonesian manufacturing sector, we provide invaluable contextual insights that deepen our understanding of corporate governance dynamics within a specific socioeconomic landscape. Our findings not only enrich academic discourse but also furnish practical implications for policymakers and corporate stakeholders navigating the complexities of contemporary business environments.