SUSTAINABLE COMPANY VALUES THROUGH CORPORATE GOVERNANCE AND PROFITABILITY

Ema Sulisnaningrum ()
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Ema Sulisnaningrum: Institute of Economic Science of Java Negara Malang

JOURNAL OF LIFE ECONOMICS, 2018, vol. 5, issue 1, 25-42

Abstract: This research explores the direct influence of corporate governance and profitability for capital structure in the company values. This research uses purposive sampling which involves 99 manufacture companies under the written stock exchange in Indonesia 2013-2015. The proxy of corporate government with CEO duality, broad size, audit committee, broad composition, institutional ownership. The data is gathered by using nonparticipant then analyzed by path analysis. Audit committee as the proxy of corporate governance shows negative result while broad composition shows positive result to capital structure. The CEO duality, broad size, and institutional ownership shows less significant. The further result shows that corporate government does not give significant influence to company values, while the direct influence of profitability is indeed does not give significant effect to capital structure but it gives significant effect to company values. This research contributes to economics especially in capital structure in order to have decision taking of stock stakeholders.

Keywords: Corporate Government; Profitability; Capital Structure and Stock Exchange (search for similar items in EconPapers)
JEL-codes: G31 G32 H11 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jle:journl:v:5:y:2018:i:1:p:25-42

DOI: 10.15637/jlecon.238

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