With GRC as a Moderating Variable, How Does Company Size and Age Affect Firm Value?
DOI:
https://doi.org/10.53866/jimi.v2i3.133Keywords:
GRC, Company Size, Company Age, Firm Value, Moderating VariableAbstract
Public companies aim to increase the firm’s value because it is the primary indicator by investors in considering their decisions. The increase in the company's value attracts potential investors because the company's value is identical to the shareholders' welfare. This study examines the effect of firm size and age on firm value with GRC as moderating. The population uses companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2020. Data collection using the purposive sampling method obtained 376 samples. Secondary data in the form of annual reports and financial reports. This study uses GRC as a moderator of the relationship between firm size and age on firm value. The analysis technique used is Moderated Regression Analysis (MRA). The analytical tool used in SPSS 26 with multiple linear regression testing. The results showed that the size and age of the company partially and simultaneously can affect the firm’s value. The GRC variable can be a moderator that strengthens the interaction between company size and age on a firm’s value. Companies listed on the IDX should carefully consider complementing the GRC component because it can strengthen competitive advantages such as company size and age, thereby increasing the firm’s value.
References
Agustia, Y. P., & Suryani, E. (2018). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Leverage, Dan Profitabilitas Terhadap Manajemen Laba. Jurnal ASET (Akuntansi Riset).
Alqibtiah, R., and Zuliyana, M. 2021. Pengaruh Umur Perusahaan, Skala Perusahaan, Penanaman Modal Asing Dan Profitabilitas Terhadap Nilai Perusahaan LQ45. Strategi : Jurnal Manajemen Vol 11 No. 02 (2021).
Al Habsyi, S., Suharman, H., & Handoyo, S. (2021). Effect Of GRC and Intellectual Capital on Company Performance. Jurnal Riset Akuntansi Kontemporer, 13(2), 106-112. https://doi.org/10.23969/jrak.v13i2.4130.
Ardiana, E., & Chabachib, M. (2018). Analisis Pengaruh Struktur Modal, Ukuran Perusahaan Dan Likuiditas Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening (Studi pada Perusahaan Consumer Goods yang terdaftar di BEI pada Tahun 2012-2016). Diponegoro Journal of Management, 7(2), 161-174. Retrieved from https://ejournal3.undip.ac.id/index.php/djom/article/view/20916
Astuti, DSP., Kristianto, D., and Setyoningsih, H. (2022). The Effect of Leverage and Company Size on Company Value Moderated by Corporate Social Responsibility (CSR) (Case Study on LQ 45 Stock Company 2017-2019). Budapest International Research and Critics Institute (BIRCI – Journal): Humanities, Vol. 5. No. 1 (2022).
Badulescu, A., Badulescu, D., Saveanu, T., & Hatos, R. 2018. The Relationship Between Firm Size and Age, and Social Responsibility Actions-Focus on A Developing Country (Romania). Sustainability (Switzerland), 10(3). Https://Doi.Org/10.3390/Su10030805
Dwiastuti, D. S., & Dillak, V. J. (2019). Pengaruh Ukuran Perusahaan, Kebijakan Hutang, dan Profitabilitas Terhadap Nilai Perusahaan. Jurnal Aset (Akuntansi Riset).
Franco-Bedoya, S., and Mani, M. 2020. The Drivers of Firms' Compliance to Environmental Regulations: The Case of India. Policy Research Working Papers. November 2020. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-9468
GRC Forum Indonesia. 2020. Panduan Mencapai Model Keunggulan Governance, Risk, and Compliance (Model Keunggulan GRC).
Handoko, B. L., Riantono, I. E. & Gani, E. (2020) Importance and Benefit of Application of Governance Risk and Compliance Principle. Systematic Reviews in Pharmacy, 11 (9), 510-513. doi:10.31838/srp.2020.9.74
Hirdinis M (2019). Capital Structure and Firm Size on Firm Value Moderated by Profitability, International Journal of Economics and Business Administration Volume VII Issue 1, 174-191
Indrarini, Silvia. 2019. Nilai Perusahaan Melalui Kualitas Laba (Good Governance dan Kebijakan Perusahaan). Surabaya: Scopindo
Leite, R., & Carvalhal, A. (2016). Firm age, value, performance, and corporate governance in Brazil. Corporate Ownership & Control, 13(4), 8-12. https://doi.org/10.22495/cocv13i4p1
Muslih, M., & Marbun, S. O. (2020). The Effect of Risk Management, Firm Age, and Firm Size on the Performance of Banking Companies Registered in Indonesia Stock Exchange Moderated By Corporate Governance and Budget as Control Variable. International Journal of Science and Society, 2(4), 274-290. https://doi.org/10.54783/ijsoc.v2i4.211
Niresh, J. A., & Velnampy, T. (2014). Firm size and profitability: a study of listed manufacturing firms in Sri Lanka. International Journal of Business and Management, 9(4), 57-64
Peters, R. H., & Taylor, L. A. (2017). Intangible capital and the investment-q relation. Journal of Financial Economics, 123 (2), 251-272. http://dx.doi.org/10.1016/j.jfineco.2016.03.011
Pfeffer, Jeffrey, and Salancik, Gerald R., The External Control of Organizations: A Resource Dependence Perspective (1978). The University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN: https://ssrn.com/abstract=1496213
Zuhroh, I. (2019). The Effects of Liquidity, Firm Size, and Profitability on the Firm Value with Mediating Leverage. KnE Social Sciences, 3(13), 203–230. https://doi.org/10.18502/kss.v3i13.4206
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Sula Yosege Sembiring Kembaren, Gunardi Endro
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
