The Impact of State vs Foreign Ownership and Corporate Governance Ranking on Profitability and Firm Value of Banks

Tri Lestari, Windu Mulyasari

2019

Abstract

The purpose of this study is to analyze the impact of state ownership (Gov), foreign ownership (foreign), and corporate governance (CG) on profitability and the implication on firm value. This study hypothesizes that profitability mediates the impact of Gov, foreign, and CG on firm value. The banking sector was chosen as the object of the research because this sector is quite vulnerable to the global financial crisis. The population of this study consists of banking companies listed on the Indonesia Stock Exchange (IDX) in the period of 2014-2018. Data were analyzed using multiple regression models and processed with SPSS software. The results of the data analysis show that there are significant effects of CG and foreign on profitability, and profitability and foreign on firm value. However, the sign of the foreign effect is negative. The mediating effect of profitability only found on the effect of CG on firm value.

Paper Citation

in Harvard Style

Lestari T. and Mulyasari W. (2019). The Impact of State vs Foreign Ownership and Corporate Governance Ranking on Profitability and Firm Value of Banks.In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM, ISBN 978-989-758-471-8, pages 469-474. DOI: 10.5220/0009960204690474

in Bibtex Style

@conference{icbeem19,
author={Tri Lestari and Windu Mulyasari},
title={The Impact of State vs Foreign Ownership and Corporate Governance Ranking on Profitability and Firm Value of Banks},
booktitle={Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,},
year={2019},
pages={469-474},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009960204690474},
isbn={978-989-758-471-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,
TI - The Impact of State vs Foreign Ownership and Corporate Governance Ranking on Profitability and Firm Value of Banks
SN - 978-989-758-471-8
AU - Lestari T.
AU - Mulyasari W.
PY - 2019
SP - 469
EP - 474
DO - 10.5220/0009960204690474