Email this article 
Article Metrics |
 Article abstract view : 1276 times |
 PDF full text: 617 times
|
Good Corporate Governance on Stock Prices of Companies Listed in the KOMPAS 100 Index 2014-2018
Abstract
This research aimed to analyze the effect of good corporate governance on stock prices. It was conducted on companies listed on the Indonesia Stock Exchange which were included in the KOMPAS100 Index in 2014-2018 by using a purposive sampling technique. Data analysis used was a panel data regression method with a fixed-effect model - least square dummy variable. The results of the study show that the number of board of the commissioner meetings, return on assets, earnings per share and price to book value had significant effects on stock prices in a positive direction; the number of directors, education/training for corporate secretaries, and price to earnings ratio had positive but insignificant effects; the number of independent commissioners and the number of board of the director meetings had negative but insignificant effects on share prices. The novelty in this study was the addition of the variable of company secretary as an indicator of corporate governance, which was not found in previous studies. Besides, this study added a dummy interaction to see the effect of the level of corporate compliance on corporate governance.
Keywords : good corporate governance, stock price, panel data
* School of Business, IPB University, Jl. Raya Pajajaran, RT.03/RW.06, Babakan, Kecamatan Bogor Tengah, Kota Bogor, Jawa Barat 16128
Full Text:
PDF
References
Ahmad, A.C., Ishak, Z. (2016). Price to book value, price to sales multiples and stock price; evidence from nigerian listed firms.
Journal of Advanced Research in Business and Management Studies 3(1), 85–93.
Aloui, M. and Jarboui, A. (2018). The effects of corporate governance on the stock return volatility: During the financial crisis.
International Journal of Law and Management 60(2), pp.478–495.
Asean Capital Market Forum. (2017). Asean Corporate Governance Scorecard Country Reports and Assessments. https://
www.theacmf.org/initiatives/corporate governance/aseancorporate-governance-scorecard-country-reports-andassessments-2014-2015.
Bae, K.H., Goyal, V.K. (2010). Equity market liberalization and corporate governance. Journal of Corporate Finance 16(5):
–621. doi:10.1016/j.jcorpfin.2010.08.008
Baltagi, B.H. (2013). Econometric Analysis of Panel Data. 5th ed. West Sussex: John Wiley & Son Ltd.
Brigham, E.F., Houston, J.F. (2001). Manajemen Keuangan Edisi Kedelapan Buku 2. Jakarta: Erlangga
Brammer, S., Brooks, C., Pavelin, S. (2009). The stock performance of america’s 100 best corporate citizens. Quarterly Review
of Economics and Finance 49(3): 1065–1080. doi:10.1016/j.qref.2009.04.001.
Buchdadi, A.D., Ulupui, I.G.K.A., Dalimunthe, S., Pamungkas, B.G., Fauziyyah, Y. (2019). Board of director meeting and firm
performance. Journal of Accounting and Finance 23(2).
Chen, K.C., Chen, Z., Wei, K.C. (2004). Corporate governance, agency costs and expected stock return: evidence from analysts’
earnings forecasts. Hong Kong University of Science & Technology
Daniri, M.A. (2014). Lead by GCG. Jakarta: Gagas Bisnis.
Drobetz, W., Schillhofer, A., Zimmermann, H. (2005). Corporate governance and expected stock returns: evidence from
germany. SSRN Electronic Journal. doi:10.2139/ssrn.369100
Ehikioya, B.I. (2015). An empirical investigation of the impact of dividend policy on the performance of firms in developing
economies: evidence from listed firms in Nigeria. International Journal of Finance and Accounting 4(5): 245-252.
doi:10.5923/j.ijfa.20150405.03.
Eisenhardt, K.M. (2018). Linked references are available on JSTOR for this article: Agency Theory: An Assessment and Review.
https://www.jstor.org/stable/258191.
Erkens, D.H., Hung, M., Matos, P. (2012). Corporate governance in the 2007-2008 financial crisis: evidence from financial
institutions worldwide. Journal of Corporate Finance 18(2), 389–411. doi:10.1016/j.jcorpfin.2012.01.005.
Farooq, O., Ahmed, S. (2019). Stock price synchronicity and dividend policy: evidence from an emerging market. Accounting
Research Journal 32(4), 627–641. doi:10.1108/ARJ-02-2018-0036.
Farooq, O., Chetioui, Y. (2012). Corporate governance and stock price performance of firms during the crisis: evidence from
the MENA region. Journal of Business Governance and Ethics 7(4):331-349. doi: 10.1504/ijbge.2012.051226.
Fuenzalida, D., Mongrut, S., Arteaga, J.R., Erausquin, A. (2013). Good corporate governance: does it pay in peru?. Journal of
Business Research 66(10), 1759–1770. doi:10.1016/j.jbusres.2013.01.008
He, W., Luo, J.H. (2018). Agency problems in firms with an even number of directors: evidence from china. Journal of Banking
and Finance 93:139–150. doi:10.1016/j.jbankfin.2018.06.006.
Huang, H.H., Chan, M.L., Huang, I.H., Chang, C.H. (2011). Stock price volatility and overreaction in a political crisis: The effects
of corporate governance and performance. Pacific Basin Finance Journal 19(1), 1–20. doi:10.1016/j.pacfin.2010.08.001.
Internasional Finance Corporation. (2016). The Corporate Secretary: The Governance Profesional. www.ifc.org.
Iskander, M.R., Chamlou, N. (2000). Corporate governance: a framework for implementation - Overview. In The World Bank
Group. doi:10.1016/b978-0-12-373932-2.00098-3.
Jarboui, A. (2018). The effects of corporate governance on the stock return volatility: During the financial crisis. Journal of Law
and Management 60(2): 478-495. https://doi.org/10.1108/IJLMA-01-2017-0010.
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.
Kennedy, J.S.P. (2003). Analisis Pengaruh dari Return on Asset, Return on Equity, Earnings per Share, Profit Margin, Asset
Turnover, Rasio Leverage dan Debt to Equity Ratio terhadap Return Saham (Studi terhadap Saham-Saham yang termasuk
dalam LQ-45 Di BEJ Tahun 2001). Thesis, Universitas Indonesia.
Komite Nasional Kebijakan Governance. (2006). Pedoman Umum Good Corporate Governance Indonesia. .
Kouwenberg, R., Salomons, R., Thontirawong, P. (2014). Corporate governance and stock returns in Asia. Quantitative Finance
(6), 965–976. doi:10.1080/14697688.2012.762603.
Kurniati, S. (2019). Stock returns and financial performance as mediation variables in the influence of good corporate
governance on corporate value. Corporate Governance 19(6): 1289-1309. doi:10.1108/CG-10-2018-0308. https://search.
proquest.com/results /33168724DD2041DFPQ/1? accountid=32819
Muhammad, N., Scrimgeour, F. (2014). Stock returns and fundamentals in the australian market. Asian Journal of Finance &
Accounting 6(1): 271-290. http://dx.doi.org/ 10.5296/ajfa.v6i1.5486
Nguyen, A.H., Vu, T.M.T., Doan, Q.T.T. (2020). Corporate governance and stock price synchronicity: empirical evidence from
vietnam. Journal of Financial Study 8(22). doi:10.3390/ijfs8020022
Organization for Economic Co-operation and Development. (2016). G20/OECD Principles of Corporate Governance. www.
oecd.org
Otoritas Jasa Keuangan. (2014). Roadmap Tata Kelola Perusahaan Indonesia. https://www.ojk.go.id/id/data-dan statistik/ojk/
Pages/roadmap-tata-kelola-perusahaan-indonesia-menuju-tata kelola-emiten-dan-perusahaan-publik-yang-lebih-baik.
aspx
Tryfino. (2009). Cara Cerdas Berinvestasi Saham, Edisi 1. Jakarta: Transmedia Pustaka.
Rahmawati, F.I., Handayani, S.R. (2017). The influence of good corporate governance practice on the stock price (study on
company of LQ45 index in indonesia stock exchange during 2012-2016. 50(6): 164-173
Rani, N., Yadav, S.S., Jain, P.K. (2013). Market response to the announcement of mergers and acquisitions: An empirical study
from India. Vision: The Journal of Business Perspective 17(1), 1–16. doi:10.1177/0972262912469558.
Retnowati, E. (2013). Analisis Faktor - Faktor yang Mempengaruhi Underpricing Saham pada Penawaran Umum Perdana
(IPO) di Bursa Efek Indonesia (BEI). Skripsi, Universitas Negeri Semarang.
Scott, W.R. (2015). Financial Accounting Theory 7th Edition. Canada Prentice Hall.
Setiawan, R. (2014). Masalah agensi free cash flow dan perilaku moral hazard (suatu tinjauan teoritis dan empiris). The 7th
NCFB and Doctoral Colloquium. 217-225.
Sudirman. (2015). Pasar Modal dan Manajemen Portofolio. Gorontalo: Sultan Amai Press IAIN Sultan Amai Gorontalo.
Syafaatul, L.K. (2014). Pengaruh good corporate governance terhadap harga saham. Jurnal Ekonomi dan Bisnis. Malang:
Universitas Brawijaya.
Tryfino. (2009). Cara Cerdas Berinvestasi Saham, Edisi 1. Jakarta: Transmedia Pustaka.
Ulupui, I.G.K.A. (2007). Analisis pengaruh rasio likuiditas, leverage, aktivitas, dan profitabilitas terhadap return saham (studi
pada perusahaan makanan dan minuman dengan kategori industri barang konsumsi di BEJ). http://ojs.unud.ac.id/
index.php/jiab/article/view/2542
Utama, C.A., Musa, H. (2011). The causality between corporate governance practice and bank performance: empirical
evidence from Indonesia. Gadjah Mada International Journal of Business 13(3), 227–247. doi:10.22146/gamaijb.5481
Vivekananda, A. (2019). Pengaruh kinerja keuangan dan makroekonomi terhadap harga saham sektor batubara perbandingan
antara indeks lq45 dan non lq45. Thesis, Institut Pertanian Bogor.
Zarkasyi, W. (2008). Good Corporate Governance Pada Badan Usaha Manufaktur, Perbankan, Dan Jasa Keuangan Lainnya.
Bandung: Alfabeta
Zulkarnaen, A.H. (2017). Pengaruh Faktor-Faktor Fundamental dan Teknikal terhadap Harga Saham pada Industri Properti
Real Estate di BEI. Thesis, Institut Pertanian Bogor
Copyright (c) 2021 INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES
International Research Journal of Business Studies indexed in: | ||||||||||||||||||||||||
|
