The Effect of Corporate Governance and Firm Performance on Stock Price: An Empirical Study on Indonesia Stock Exchange

Mulyono Mulyono; Adi Teguh Suprapto; Danang Prihandoko

doi:10.21512/bbr.v9i1.1916

Authors

Mulyono Mulyono Bina Nusantara University
Adi Teguh Suprapto Bina Nusantara University
Danang Prihandoko Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v9i1.1916

Keywords:

Indonesia Stock Exchange, corporate governance, firm performance, Return on Asset (ROA), Total Asset Turnover (TATO), firm size, stock price

Abstract

This research aimed to determine the effect of corporate governance and firm performance on stock prices. It was shown by Corporate Governance Perception Index (CGPI), Return on Assets (ROA), Total Asset Turnover (TATO), and firm size (SIZE) in the Indonesia Stock Exchange (IDX). Data sample used in this research was company listed on IDX during 2009-2012 and participated in CGPI of that period. Financial statement data and stock prices could be obtained from the IDX website and CGPI data were from the Indonesian Institute for Corporate Governance. Hypothesis test used in this research was a multiple linear regression analysis. As a result, the application of corporate governance and ROA give positive but insignificant effect on stock prices. Meanwhile, TATO and SIZE have a positive and significant effect on stock prices. Both variables of corporate governance and firm performance influence stock prices significantly.

Dimensions

Plum Analytics

Author Biographies

Mulyono Mulyono, Bina Nusantara University

School of Business Management

Adi Teguh Suprapto, Bina Nusantara University

School of Business Management

Danang Prihandoko, Bina Nusantara University

School of Business Management

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