Internal Corporate Governance, Profitability, and Firm Value: Evidence from Indonesian Manufacturing Firms in the Consumer and Industrial Sector
DOI:
https://doi.org/10.55606/ijemr.v5i2.752Keywords:
Firm Value, Independent Commissioners, Institutional Ownership, Managerial Ownership, ProfitabilityAbstract
This study examines the relationship between good corporate governance (GCG) mechanisms and company value, with profitability as a mediating variable, in manufacturing companies in the industrial and consumer goods sectors listed on the Indonesia Stock Exchange in 2023. GCG mechanisms are proxied by managerial ownership, institutional ownership, and the proportion of independent commissioners. The study uses an explanatory quantitative approach with secondary data from companies' annual reports and financial statements. The sample was selected purposively and analyzed using regression-based path analysis to test direct and indirect effects, as well as Sobel's test to confirm the mediating role. Descriptive statistics show a heterogeneous ownership structure, with institutional ownership dominating and managerial ownership tending to be uneven across companies, while the proportion of independent commissioners is relatively more uniform. Model testing shows that managerial ownership and institutional ownership are positively related to profitability, and profitability is positively related to company value. The mediation test indicates that profitability mediates the relationship between managerial ownership and institutional ownership on company value. Conversely, independent commissioners do not show a significant effect on profitability or company value, so the mediation path is not supported. These findings confirm that ownership mechanisms play a more consistent role in driving value creation through the performance channel, while the effectiveness of independent commissioners is not sufficiently reflected when measured solely based on composition. This study suggests strengthening the implementation of substantive GCG and using governance indicators that capture the quality of supervision in future research, so that the explanation of variations in company value becomes more comprehensive.
References
Affes, W., & Jarboui, A. (2023). The impact of corporate governance on financial performance: a cross-sector study. International Journal of Disclosure and Governance, 20(4), 374–394. https://doi.org/10.1057/s41310-023-00182-8
Agung, K., Wahidahwati, & Mildawati, T. (2023). The Effect Of Good Corporate Governance On Firm Value With Financial Performance As An Intervening Variable. Lead Journal of Economy and Administration, 2(1), 58–71. https://doi.org/10.56403/lejea.v2i1.119
Annur, C. M. (2024). Inilah 10 Sektor Utama Penopang Ekonomi Indonesia pada 2023, Industri Pengolahan Terbesar. Katadata.Co.Id.
Ardana, C. (2021). Failure of Corporate Governance - a Case Study at PT Garuda Indonesia TBK. Jurnal Akuntansi.
Astuti, E. D., & Suhendro, S. (2024). Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Mediasi (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (BEI) Tahun 2017-2021). Jurnal Mutiara Ilmu Akuntansi, 2(01), 340–356. https://doi.org/10.47202/mak.v30i01.77
Brigham, E. F., & Houston, J. F. (2004). Fundamentals of Financial Management. Thomson/South-Western.
Christine, D., & Winarti, W. (2022). Pengaruh Return on Assets (ROA), Return on Equity (ROE), dan Earning per Share (EPS) terhadap harga saham. Owner, 6(4), 4113–4124. https://doi.org/10.33395/owner.v6i4.1096
Contributors, W. (2025). Vạn Thịnh Phát fraud case. Wikipedia, The Free Encyclopedia.
Dian, A., & Manurung, P. (2022). The Effect of Good Corporate Governance on Firm Value with Financial Performance As an Intervening Variable. Neo Journal of Economy and Social Humanitities (NEJESH), 1(4), 242–254. https://doi.org/10.56403/nejesh.v1i4.54
Ditaputri, K., Hartono, U., & Aji, T. S. (2023). The Mediating Effect of Financial Performance on GCG and Firm Value: Evidence from Indonesian Listed Firms. International Journal of Multicultural and Multireligious Understanding, 10(9), 215–225. http://dx.doi.org/10.18415/ijmmu.v10i9.4970
Effendi, S., & Prima, A. P. (2023). Analysis of the Influence of Institutional Ownership, Managerial Ownership, and Ownership Structure on Company Financial Performance: Case Study of Manufacturing Companies in Indonesia. Global Financial Accounting Journal, 7(2), 169. https://doi.org/10.37253/gfa.v7i2.8596
Furqoni, I. D., & Ratmono, D. (2022). Pengaruh Mekanisme Gcg Terhadap Kinerja Keuangan Perusahaan Dengan Manajemen Laba Sebagai Variabel Mediasi. Diponegoro Journal of Accounting, 11(2), 1–13.
Ghozali, I. (2021). Aplikasi Analisis Multivariate dengan Program IBM SPSS 26 Edisi 10. Badan Penerbit Universitas Diponegoro.
Gujarati, D. N., & Porter, D. C. (2015). Basic Econometrics (5th ed.). McGraw-Hill Education.
Hayes, A. (2021). Understanding the consumer goods sector & how it works. Investopedia.
Ika, A. (2024). Sumbangan Sektor Manufaktur ke PDB 2023 Besar, Indonesia Disebut Tidak Alami Deindustrialisasi. Kompas.Com.
Istikharoh, Shofi, & Shodiq, M. J. (2020). Pengaruh Struktur Modal Dan Proporsi Dewan Komisaris Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Intervening (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar DI Bei Tahun 2016-2018).
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kemenperin.go.id. (2023). Jadi Penggerak Ekonomi, Kontribusi Manufaktur Masih Tertinggi.
Lestari, F. A., & Sihono, S. A. C. (2024). Good Corporate Governance terhadap nilai perusahaan pertambangan sub sektor minyak dan gas bumi tahun 2018–2022. Jurnal Administrasi Bisnis. https://doi.org/10.35797/jab.14.1.9-19
Milenia, D. A., & Muid, D. (2019). Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2017. Jurnal Eksplorasi Akuntansi, 1(3), 1096–1110.
Muasiri, A. H., & Sulistyowati, E. (2021). Pengaruh Intellectual Capital Dan Corporate Governance Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Moderasi. Jurnal Ekonomi Dan Bisnis (EK&BI), 4(1), 426–436. https://doi.org/10.37600/ekbi.v4i1.255
Pamungkas, I. D., Purwantoro, Sari, M. P., & Hersugondo. (2023). Corporate Governance and Financial Performance on Firm Value: The Case of Indonesia. WSEAS Transactions on Business and Economics, 20, 92–103. https://doi.org/10.37394/23207.2023.20.10
Putranto, P., Maulidhika, I., & Scorita, K. B. (2022). Dampak Good Corporate Governance dan Profitabilitas terhadap Nilai Perusahaan. Jurnal Online Insan Akuntan, 7(1), 61. https://doi.org/10.51211/joia.v7i1.1734
Rachmah, A., & Iswara, U. S. (2023). Analisis Pengaruh Struktur Kepemilikan terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Intervening. Jurnal Ilmu Dan Riset Akuntansi, 12(3), 1–21.
Rumaidia, M. N., & Rahman, A. F. (2023). Pengaruh Good Corporate Governance terhadap Nilai Perusahaan dimediasi oleh Kinerja Keuangan (Studi pada Perusahaan di Jakarta Islamic Index 70 Periode 2018-2021). Ekonomis: Journal of Economics and Business, 7(2), 922. https://doi.org/10.33087/ekonomis.v7i2.1163
Saputra, B. (2023). BPS: Sektor manufaktur jadi penyumbang terbesar pertumbuhan ekonomi RI. ANTARA.
Saragih, E. A., & Forever, F. (2024). Pengaruh Kinerja Keuangan Terhadap Nilai Perusahaan dimoderasi Good Corporate Governance. Jurnal Ekonomi & Ekonomi Syariah, 7(10), 1–21. https://doi.org/10.36778/jesya.v7i1.1501
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). John Wiley & Sons Ltd.
Shleifer, A., & Vishny, R. (1986). Large Shareholders and Corporate Control. Journal of Political Economy, 94(3), 461–488. https://www.jstor.org/stable/1833044
Silviana, Sari, D., A, F., & Nuryaman. (2020). The Effect of GCG, Profitability, and Leverage Mechanism on Company Values in Manufacturing the Firm Listed on Bei 2015-2017 Period. International Journal of Psychosocial Rehabilitation, 24(02), 3142–3149. https://doi.org/10.37200/ijpr/v24i2/pr200621
Sobel, M. E. (1982). Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models. In Sociological Methodology (pp. 290–312). American Sociological Association. https://doi.org/10.2307/270723
Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.
Titisari, K. H. (2021). Corporate Governance - Sebuah Tinjauan Teoritis dan Praktikal di Indonesia. CV Kekata Group.
Wahasusmiah, R., & Arshinta, F. A. B. (2022). Pengaruh Ukuran Perusahaan, Investment Opportunity Set, dan Corporate Governance terhadap Nilai Perusahaan dengan Kinerja Keuangan Sebagai Variabel Intervening pada Perusahaan LQ45. Mbia, 21(1), 1–17. https://doi.org/10.33557/mbia.v21i1.1681
Widayawati, E., & Hardati, R. N. (2023). The Effect Of Good Corporate Governance On Company Value With Financial Performance As A Mediating Variable. Business and Accounting Research (IJEBAR), 7(2). https://doi.org/10.29040/ijebar.v7i2.9468
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Journal of Economics and Management Research
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
