How Good Corporate Governance Influences Company Value through Financial Performance

Abstract

This study seeks to determine the relationship between Good Corporate Governance and Company Value, with Financial Performance as an Intervening Variable, for LQ 45 companies listed on the Indonesia Stock Exchange. This research utilizes quantitative methodology. The source of data for this study is secondary data. Using the technique of purposive sampling, a sample of 31 companies was obtained from a population of 45 companies based on predetermined criteria. Classic assumption testing, multiple linear regression analysis, and hypothesis testing are employed as the method of analysis. Good Corporate Governance has a positive and statistically significant effect on firm value, Good Corporate Governance has a positive and statistically significant effect on Financial Performance, Financial Performance has a positive and statistically significant effect on Firm Value, and Good Corporate Governance has a significant effect on firm value via financial performance.