PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN SEKTOR PERBANKAN PADA LQ-45 DI BURSA EFEK INDONESIA

Abstract

Management in public companies have a role to supervise and implement Good Corporate Governance (GCG) in order to generate the validity of financial reporting quality information. Thus, disclosure level given by the management company will have an impact on the movement of stock prices to up and down. These conditions make the writer interested to researching the influence of Good Corporate Governance on firm value. This research was conducted with descriptive and statistical methods to the object of the research is the banking sector company on the LQ-45 in Indonesia Stock Exchange from 2010 till 2013. Data was collected using documentary studies method. Based on the results of hypothesis testing by t test analysis, the variable of board of director’s number, the proportion of independent directors, and audit committee’s number don’t have a positive effect on firm value. However, variable of institutional ownership proved to have a positive effect on firm value.