Corporate Governance on Firm Value: Mediation of Profitability
DOI:
https://doi.org/10.55927/ijabm.v4i1.1Keywords:
Corporate Governance, Firm Value, ProfitabilityAbstract
The phenomenon of global warming causes an increase in greenhouse gas emissions in the atmosphere, where environmentally unfriendly products are the cause. The impact is an increase in the average temperature of the earth, changes in weather patterns that endanger the world's ecosystem. The sustainability of a company can be measured from the performance of the firm's value, where corporate governance through profitability can be a factor that influences the value of the firm. This study aims to see the effect of corporate governance on firm’s value with profitability mediation. The research population consisted of 25 SRI-KEHATI Index companies in the 3rd quarter of 2023, and 24 of them were sampled through the purposive sampling method, the data of which was obtained through the official Morningstar Sustainalytics website, and the Indonesia Stock Exchange. The research analysis technique uses the Partial Least Square-SEM method with SmartPLS 4 software. The results of the study show: (1) corporate governance affects the value of the firm in the SRI-KEHATI stock index, and (2) profitability does not mediate the effect of corporate governance on the value of the firm in the SRI KEHATI stock index
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