How Do Good Corporate Governance and Financial Performance Affect the Value of State-Owned Enterprises?

Abstract

This study examines the effect of good corporate governance and financial performance on the value of state-owned enterprises (SEOs). The population of this study was all companies listed on the Indonesia stock exchange, with a sample of 20 SEOs companies in 2015-2019. The independent variables in this study were Good Corporate Governance with the Independent Board of Commissaries and the Audit Committee and financial performance with the Return on Equity proxy. The dependent variable in this study was the value of SEOs with the price to book value proxy. Hypotheses were tested using SPSS 21.0 software, and data were analysed using multiple linear regression tests. This study found that the Independent Board of Commissaries had a negative and significant effect on the value of SEOs; Audit Committee had a positive and significant effect on the value of SEOs. On the other side, ROE has a negative and insignificant effect on the value of SEOs.