Good Corporate Governance , Devidend , Leverage , and Firm Value

S A R I P A T I Vol. 12 | No. 3 ISSN: 2089-6271 | e-ISSN: 2338-4565 | https://doi.org/10.21632/irjbs Evi Dwi Kartikasari; Agung Hermantono; Annita Mahmudah Departement of Accounting, Sekolah Tinggi Ilmu Ekonomi KH Ahmad Dahlan, Jl. KH. Ahmad Dahlan No.41, Tlogoanyar, Kec. Lamongan, Kabupaten Lamongan, Jawa Timur 62115

The establishment of the company in carrying out its business generally has the aim of obtaining maximum profits for the survival of the company. The survival of the company can be achieved if the company's performance is good, it always increases and has good corporate governance. The value of the company is a reflection of the addition of the company's equity with the company's debt. This type of research is descriptive with a quantitative approach. The sample of 32 companies included in publicly listed manufacturing companies using purposive sampling method. The results showed that good corporate governance which was proxy by institutional ownership and managerial ownership had no effect on Value of the firm. Devidend pay out ratio, leverage that is proxy by debt to assets ratio and debt to equity ratio, financial performance which is proxy by return on assets and return on equity has a significant effect on value of the firm. Companies must increase the value of the company in order to attract the attention of potential investors, one of them by increasing the financial performance of the company.

INTRODUCTION
Companies in the industrial and economic world that are increasingly developing cause intense competition. Business competition requires manufacturing companies to make various efforts to achieve the desired goals. The establishment of the company in carrying out its business generally has the aim of obtaining maximum profits, by maximizing sales and corporate value which is reflected in the share price that can prosper the owners of the company and shareholders and their employees for the survival of the company.   (Brigham and Houston, 2006: 36).

c. Bird in the hand theory
Gordon and Lintner (in Brigham and Houston, 2006: 71) argue that the cost of share capital will decrease along with increase in devidend payments. This is because, investors are less confident in the capital gain revenue that will be generated from the retained earnings compared to receipts from devidend payments.

Company value
Company value is a certain condition that has been achieved by a company as an illustration of public trust in the company after going through an activity process for several years, namely since the company was established until now. The high wealth of shareholders is determined by the high value of the company (Bringham 11 Gapensi, 1996). Increasing the value of the company is an achievement, which is in accordance with the wishes of the owners (shareholders) and this is the duty of the manager as an agent who has been given the trust by the owners to run the company. Return on assets (ROA) is one of the profitability ratios that can measure a company's ability to generate profits from assets used. ROA is able to measure the company's ability to generate profits in the past to be projected in the future. Return on Assets is used to evaluate whether management has received adequate rewards (reasobable return) from the assets it controls. This ratio is a measure if someone wants to evaluate how well the company has used its funds.
Return on Equity (ROE) Is a ratio that measures the level of net income earned by a company owner over invested capital or in other words measures the extent to which the level of efficiency of own capital is used. This ratio is also affected by the size of the company's debt, if the proportion of debt becomes greater then this ratio will also be greater.

Good corporate governance
The Forum for Corporate Governance in Indonesia (FCGI) defines corporate governance as a set of rules governing the relationship between shareholders, company managers, creditors, government, employees, and other internal and external stakeholders related to their rights and obligations. In other words, a system that controls the company.
The purpose of corporate governance is to create added value for all interested parties (stakeholders).
Corporate Governance is a system and structure for managing the company with the aim of increasing shareholder value and accommodating various parties with an interest in companies such as creditors, suppliers, business associations, consumers, workers, government and the wider community. Leverage in this study is proxied by debt to assets ratio (DAR) and debt to equity ratio (DER). 3 Companies that do not distribute cash dividends three years in a row during the observation period (79) The number of final samples that meet criteria 32 Debt to equity ratio (DER) is a comparison between total long-term debt and equity. The lower the DER, the smaller the level of debt the company uses and the ability to repay the debt higher. Likewise, the higher the DER, the higher the debt used and the higher the risk that the company has.
The formula for calculating Debt to equity Ratio

Model feasibility test
The results of multiple regression analysis show

Moderation Regression Test (Moderated regression analysis)
The purpose of this analysis is to find out whether the moderating variable will strengthen or weaken  (Mayogi & Fidiana, 2016), (Farida, 2014