The influence of leverage, capital structure, and good corporate governance on the value of mining companies

Valentina Eleonora; Stephana Dyah Ayu R

Authors

Valentina Eleonora Program Studi Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Katolik Soegijapranata
Stephana Dyah Ayu R Program Studi Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Katolik Soegijapranata

Keywords:

Leverage, capital structure, corporate governance

Abstract

Firm value is used as a measure of the success of the company's management in seeing future operating prospects. This is the key to building trust for investors who will invest. When investors feel that their welfare has been fulfilled, this will automatically reflect an increase in company value. Several factors can affect firm value, namely leverage, capital structure, and GCG. So this study aims to determine the significance of the influence of leverage, capital structure, and GCG on firm value. The population of this study are all mining sector manufacturing companies listed on the Indonesia Stock Exchange in 2018-2022. The sampling technique used the purposive sampling method. Research data is taken from secondary data in the form of annual reports and company financial reports. In testing the hypothesis using multiple regression analysis techniques using the SPSS application. The results of the study state that leverage has no significant effect on firm value, this means that the company in financing its assets does not depend on external funds. Capital structure has a significant effect on the company. With the addition of debt that has the aim of expanding the business, it will increase the share price of the company. This is also the cause of the increase in firm value. GCG has a significant effect on firm value, proving that good supervision can increase company value.

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