The Role of Audit Committee of GCG in Increasing Company Value through ROA

Ana  Kadarningsih; Irene Rini Demi  Pangestuti; Sugeng  Wahyudi; Julia  Safitri

doi:10.36941/ajis-2020-0057

Authors

Ana Kadarningsih Diponegoro University, Doctoral Student of Economics and Business Faculty; Lecturer of Dian Nuswantoro University, Indonesia
Irene Rini Demi Pangestuti Diponegoro University, Economics and Business Faculty, Indonesia
Sugeng Wahyudi Diponegoro University, Economics and Business Faculty, Indonesia
Julia Safitri Diponegoro University, Economics and Business Faculty; Lecturer of STIE IPWIJA, Indonesia

DOI:

https://doi.org/10.36941/ajis-2020-0057

Abstract

This study determines the Good Corporate Governances (GCG) influence in increasing company value through Return on Assets (ROA). Good Corporate Governance factors used in this research are independent commissioner (IC) and audit committee (AC). Company Value factors used in this research is PBV (Price to Book Value). Sample of this research contains 23 conventional commercial banks registered on IDX (Indonesia Stock Exchange) in the period of 2014-2018. The method of data analysis uses multiple linear regression. The results show that the fastest variable to increase company value through ROA as a mediating variable is the audit committee. Independent commissioner does not influence on financial performance (ROA) and company value. Another variable that rapidly increases company value is the direct influence of intellectual capital on company value.