Strong corporate governance boosts firm value in manufacturing companies, study finds
The study looked at how good corporate governance and leverage affect the value of manufacturing companies, with profitability as a moderating factor. They analyzed data from Indonesian stock exchange-listed manufacturing companies from 2014 to 2018. The results showed that audit committees and institutional ownership positively influence firm value, while public ownership, independent commissioners, and leverage do not significantly affect it. Audit committees and institutional ownership, when moderated by profitability, negatively impact firm value. Public ownership and profitability moderation do not significantly affect firm value. Independent commissioners and profitability moderation have a non-significant positive impact on firm value.