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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
The Effect of Firm Size on Firm Value through Financial Performance
Based on the path analysis, the direct influence of the Liquidity variable on firm value is 0.222. Meanwhile, the indirect effect of the liquidity variable on firm value and financial performance is (0.222 x0.193 = 0.0308). The direct effect of liquidity on firm value is greater than the indirect effect (0.222 > 0.0308), and the z value calculated using the Sobel test is 0.416 < 1.96, so it can be concluded that financial performance cannot yet mediate the relationship between liquidity and firm value.
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The Impact of Covid-19 on Company Value through Financial Performance
Based on the path analysis of the direct influence of the Covid-19 Impact variable on company value, it is 0.040. Meanwhile, the indirect effect of the Covid-19 Impact variable on company value and financial performance is (0.040x -0.193 = -0.0077). The direct effect of the impact of Covid-19 on firm value is greater than the indirect effect (0.040>-0.0077), and the calculation using the Sobel test, the z value obtained is 0.790 <1.96, it can be concluded that financial performance cannot yet mediate the impact relationship Covid-19 and company values.
IV. CONCLUSION
`The purpose of this study is to examine the effect of Good Corporate Governance Mechanism, Liquidity, Company Size, and the Impact of Covid-19, on Corporate Value with Financial Performance as a Mediating Variable. This study used a sample of 35 banking companies listed on the IDX in 2017-2021. Based on the test results it is known that in equation II there is a direct effect between the variables of the board of directors, liquidity, and financial performance on firm value. Meanwhile, the independent board of commissioners, audit committee, audit quality, company size, and the impact of Covid-19 do not have a direct impact on company value. In equations I and II, the path test, and the calculation of the Sobel test, it can be seen that financial performance is not capable of being a mediating variable for the relationship between good corporate governance mechanisms (independent board of commissioners, audit committee, audit quality, and board of directors), liquidity, company size, and the impact of covid-19 on company value. The limitation in this study is that the research sample used is all banking companies listed on the IDX and there are no provisions regarding the size of the company. this can cause the research data to be biased. This study also has limitations regarding sample data that is too extreme due to the covid pandemic so that the data is not normally distributed. In addition, there are limited references that will be used to support the results of this study.
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