Download fulltext HTML
Rizki, A., & Jasmine, A. (2018). Investor Protection, Corporate Governance, Firm Value: Research on the Companies in Asia. KnE Social Sciences, 3(10). https://doi.org/10.18502/kss.v3i10.3403

https://doi.org/10.18502/kss.v3i10.3403

statistics

  • 2716 Abstract Views
  • 445 PDF Views
  • 0 HTML Views

authors

  • A Rizki
    No author data available.
  • A Jasmine
    No author data available.

Published Date

  • Nov 12, 2018

Investor Protection, Corporate Governance, Firm Value: Research on the Companies in Asia

KnE Social Sciences / The 2018 International Conference of Organizational Innovation (ICOI-2018) /

Abstract

This study examines the effect of investor protection on the firm value, either directly or through the implementation of corporate governance as an intervening variable in 10 countries in Asia. Investor protection as independent variable was measured by the score of investor protection consisting of legal tradition, corporate law and enforcement, and securities law. Firm value as the dependent variable was measured with Tobin’s q. The research hypotheses were tested using partial least square model. This study found that investor protection had no significant impact on firm value, but it did have a significant impact on corporate governance, which further had a significant impact on firm value; hence, investor protection had significant impact on firm value with the implementation of corporate governance as mediating variable.


 


 


Keywords: investor protection, corporate governance, firm value, corporate governance score

References
[1] Brigham, E. F. and Houston, J. F. (2006). Dasar-Dasar Manajemen Keuangan (Edisi Kesepuluh). Jakarta: Salemba Empat.


[2] Brown, L. D. and Caylor, M. L. (2004). Corporate governance and firm performance. Retrieved from SSRN 586423.


[3] Darmawati, D. and Khomsiyah, R. G. R. (2005). Hubungan Corporate Governance dan Kinerja Perusahaan. Jurnal Riset Akuntansi Indonesia, vol. 8, no. 1, pp. 65–81.


[4] Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, vol. 14, no. 1, pp. 57–74.


[5] Fakhruddin, M. and Hadianto, M. S. (2001). Perangkat dan Model Analisis Investasi di Pasar Modal. Jakarta: PT. Elex Media Komputindo.


[6] Gill, A., Allen, J., and Powell, S. (2010). CG Watch 2010: Corporate Governance in Asia. CLSA.


[7] Gill, A., Allen, J., and Yonts, C. (2012). CG Watch 2012: Corporate Governance in Asia. CLSA.


[8] Governance, K. N. K. (2006). Pedoman Umum Good Corporate Governance Indonesia 2006.


[9] Hill, C. W. and Jones, T. M. (1992). Stakeholder-agency theory. Journal of Management Studies, vol. 29, no. 2, pp. 131–154.


[10] Jensen, M. C. and Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, vol. 3, no. 4, pp. 305–360.


[11] Klapper, L. F. and Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, vol. 10, no. 5, pp. 703–728.


[12] La Porta, R., Lopez-de-Silane, F., Shleifer, A., et al. (1996). Law and Finance (No. w5661). National Bureau of Economic Research.


[13] La Porta, R., Lopez-de-Silanes, F., Shleifer, A., et al. (2000). Investor protection and corporate governance. Journal of Financial Economics, vol. 58, no. 1, pp. 3–27.


[14] . 2002. Investor protection and corporate valuation. The Journal of Finance, vol. 57, no. 3, pp. 1147–1170.


[15] La Porta, R., Lopez−de−Silanes, F., and Shleifer, A. (2006). What works in securities laws?. The Journal of Finance, vol. 61, no. 1, pp. 1–32.


[16] Muryati, N. N. T. S. and Suardikha, I. (2014). Pengaruh Corporate Governance Pada Nilai Perusahaan. E-Jurnal Akuntansi Universitas Udayana, vol. 9, no. 2, pp. 425–429.


[17] Myers, S. C. (1989). Signaling and Accounting Information (No. w3193). National Bureau of Economic Research.


[18] Nurlela, I. (2008). Pengaruh Corporate Social Responsibility Terhadap Nilai Perusahaan Dengan Prosentase Kepemilikan Manajemen Sebagai Variabel Moderating. Symposium Nasional Akuntansi XI.


[19] Organisation for Economic Co-operation and Development. (1999). OECD Principles of Corporate Governance. OECD


[20] Rachmawati, A. and Triatmoko, H. (2007). Analisis faktor-faktor yang mempengaruhi kualitas laba dan nilai perusahaan. Simposium Nasional Akuntansi X, pp. 1–26.


[21] Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. The Bell Journal of Economics, pp. 23–40.


[22] Shleifer, A. and Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, vol. 52, no. 2, pp. 737–783.


[23] Siallagan, H. and Machfoedz, M. U. (2006). Mekanisme corporate governance, kualitas laba dan nilai perusahaan. Simposium Nasional Akuntansi IX, vol. 60.


[24] Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, pp. 355– 374.


[25] Husnan, S. and Pudjiastuti, E. (2004). Dasar-dasar Manajemen Keuangan. Yogyakarta: UPP AMP YKPM.


[26] Wardhani, R. (2009). Pengaruh Proteksi Bagi Investor, Konvergensi Standar Akuntansi, Implementasi Corporate Governance, Dan Kualitas Audit Terhadap Kualitas Laba: Analisis Lintas Negara Di Asia. Disertasi. Universitas Indonesia. Jakarta.


[27] Yamin, S. and Kurniawan, H. (2011). Partial Least Square Path Modelling Aplikasi dengan Software XLSTAT, SmartPLS, dan Visual PLS. Jakarta: Salemba Infotek.