Good Governance Boosts Stock Returns, Business Risk Key Factor
The study looked at how Economic Value Added (EVA), Good Corporate Governance (GCG), and business risk affect stock returns through firm value in companies listed in the LQ45 index. They found that business risk has a positive and significant impact on stock returns, while firm value has a positive and significant effect on stock returns. Good Corporate Governance positively influences firm value, but Economic Value Added does not significantly affect stock returns or firm value.