Agency Conflict Control on Corporate Values in Companies With the Best GCG Period 2008-2014

Abstract

The study aims to analyze the effects of CGPI, free cash flow, leverage, managerial ownership, and asset turnover to the value of the firm. Sample consisted of 23 companies with the best GCG and listings on the Indonesia Stock Exchange (IDX) between 2008-2014. Thus obtained 161 observations for each group. This research used Ordinary Least Square (OLS) in order to test their hypothesis and has shown that, CGPI, free cash flow and asset turnover contribute significantly positive effects on the value of the firm based on Tobin's Q model with alpha 5%, while leverage and managerial ownership contributes to a negative effect on it with a significant different level. Overall the results of this study support Arsjah (1) and Destriana (8) states CGPI as the main factor in the analysis model.