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American Journal of Humanities and Social Sciences Research (AJHSSR) 2023
from The Influence of Good Corporate Governance Mechanisms, Liquidity, Firm Size, and Impact of Covid-19
III. RESULT AND DISCUSSIONS
Table 1. Descriptive statistical analysis test result
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Sumber: SPSS data processing (2022)
In this study 175 samples were used, but 22 outliers were used for the data, so that the final sample used for data processing was 153 samples. Based on the result of the independent board of commissioners variable research has a range between 0,33 – 1 and an average of 0,5842. The audit committee variable has a range between 0,25
1 and an average 0,5663. The audit quality variable has a range between 0,00 – 1 with an average value of 0,5882. The board of directors variable has a range between 0,45 – 0,75 with an average 0,5676. The liquidity variable as measured by LDR has a range between 0,38 – 2,74 with an average of 0,8573. The Firm size variable as measured by Ln assets has a range of 28,45 – 35,54 with an average 31,5910. The impact of Covid19 variable has a range between 0,00 – 1 with an average of 0,3399. The Firm value variable as measured using Tobin’s Q has a range between 0,11 – 4,26 with an average 1,1063. The financial performance variable measured using ROE has a range between -1,24 – 0,18 with an average of 0,0278.
Hypothesis Test
In this research hypothesis test using multiple linear regression analysis and path analysis. The result of the multiple linear regression test in this study are:
Table 2. Result of Regression Test Equation I Equation II
Sumber: SPSS data prosessing (2022)
Analysis Result Discussion
The Effect of Good Corporate Governance Mechanisms on Firm Value
Based on the research findings, the Independent Board of Commissioners variable has a significant pvalue of 0.603. Because the significance value of the p-value is more than 0.05 (0.603>0.05). Then Ho is rejected, which shows that the independent board of commissioners variable has no direct influence. The Audit Committee variable has a significant p-value of 0.846. Because the significance value of the p-value is more than 0.05 (0.846>0.05). Then Ho is rejected, which shows that the audit committee variable has no direct effect. Audit Quality variable has a significant p-value of 0.068. Because the significance value of the p-value is more than 0.05 (0.068> 0.05). Then Ho is rejected, which shows that the audit quality variable has no direct effect. The Board of Directors variable has a p-value significance of 0.011. Because the significance value of the pvalue is more than 0.05 (0.011 <0.05). Then Ho is accepted, which shows that the board of directors variable has a direct influence. According to stakeholder theory, the director's position has an important role in determining the strategy and decisions for the organization (Ghozali and Chariri, 2007). Thus, from the results of the Good Corporate Governance Mechanism analysis with four measurements, it is found that only the board of directors has a direct influence on firm value and the independent board of commissioners, audit committee and audit quality do not have a direct influence on firm value.
The Effect of Liquidity on Firm Value
Based on the research findings, the Liquidity variable has a significant p-value of 0.049. Because the significance value of the p-value is less than 0.05 (0.049 <0.05). Then Ho is accepted, which shows that the liquidity variable has a direct effect. Liquidity describes a bank's ability to pay back withdrawals by depositors by relying on the credit provided as a source of liquidity (Dewi: 2020). Liquidity affects firm value because the liquidity ratio can be taken into consideration by investors. Investors will be interested in investing their capital if the bank has a good soundness ratio, so that the company's share price will also increase (Patricia et.al (2018). The relationship between the liquidity ratio and firm value is that this ratio is used to measure the ability of the bank to pay its debts and pay back, and be able to meet The demand for credit that is channeled will determine the bank's profit. If a bank is unable to extend credit, while there are a lot of funds raised, it will cause the bank to lose money and will reduce the value of the company.
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