The Effect of Good Corporate Governance, Earning Management on Firm Value

Darmawan, Wahyu Fikri (2024) The Effect of Good Corporate Governance, Earning Management on Firm Value. Journal of Accounting Science (JAS), 9 (1). pp. 79-96. ISSN 2548-3501

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Abstract

General Background: Firm value serves as a long-term goal to attract investors and ensure sustainable growth, while Good Corporate Governance (GCG) addresses agency conflicts to enhance value. Specific Background: Enterprise value and GCG are essential for creating ethical, competitive, and resilient organizations, enabling firms to navigate global economic and social challenges. Knowledge Gap: Despite prior research, inconsistencies remain regarding the impact of GCG and earnings management on firm value, necessitating further study. Aims: This study examines the influence of GCG, earnings management, and firm-specific factors on firm value, providing insights for investment decisions. PBV is used as a proxy for firm value, while the Jones model represents earnings management, with GCG measured through board composition, independent commissioners, and audit committees. Methods: Using a quantitative approach, the study analyzed 155 data points from new coal mining companies listed on the Indonesia Stock Exchange (2019–2023) through purposive sampling and documentation techniques. Results: The board of directors significantly enhances firm value, while the audit committee and independent commissioners are less effective. Earnings management negatively impacts firm value by creating informational asymmetry. Novelty: By integrating signal theory, the study offers a unique perspective on mitigating information asymmetry through transparent reporting. Implications: The findings contribute to improving corporate governance practices and guiding investment strategies.

Item Type:	Article
Uncontrolled Keywords:	Firm Value, Independent Board of Commissioners, Board of Directors, Audit Committee, Earnings Management
Subjects:	Economic And Business > Accounting Economic And Business
Divisions:	Faculty of Economic and Business > Accounting Study Program Library of Congress Subject Areas > Accounting Study Program Accounting Study Program
Depositing User:	Wahyu Fikri Darmawan
Date Deposited:	30 Sep 2025 08:44
Last Modified:	30 Sep 2025 08:44
URI:	http://eprints.umg.ac.id/id/eprint/14647

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