THE EFFECT OF GOOD CORPORATE GOVERNANCE ON CORPORATE FINANCIAL PERFORMANCE WITH FIRM SIZE AS A MODERATING VARIABLE
DOI:
https://doi.org/10.35334/j4zey637Keywords:
Good Corporate Governance Corporate Financial Performance Firm SizeAbstract
The implementation of good corporate governance is one of the important mechanisms for improving a company's financial performance. This study aims to analyze the effect of good corporate governance on corporate financial performance with firm size as a moderating variable. The research objects were State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. Of the 27 companies in the population, 21 companies were selected as the sample using a purposive sampling technique. This study used a quantitative method with panel data regression analysis and moderated regression analysis (MRA). The results show that good corporate governance has a significant effect on corporate financial performance. In addition, firm size is proven to moderate the relationship between good corporate governance and financial performance in a negative direction, indicating that in larger companies the effect of good corporate governance on financial performance tends to weaken.
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