Effect of Corporate Governance Mechanisms on Financial Performance and Firm Value with Green Accounting Disclosure as Moderating Variables

Abstract

This study aims to examine and analyze the effect of corporate governance mechanisms on financial performance and firm value with the green accounting disclosure as a moderating variable. The study was conducted at the hospitality sub-sector companies listed on the Indonesia Stock Exchange for the period of 2013-2017. Sampling is done by purposive sampling. The analytical methods used are path analysis and moderated regression analysis (MRA). The results of the research in the direct effect test show that corporate governance mechanisms that are proxy by foreign ownership and institutional ownership do not affect the financial performance and firm value. The frequency of audit committee meetings has a significant effect to financial performance and firm value. Financial performance has a significant effect to firm value. The financial performance can not mediate foreign ownership and institutional ownership to firm value. Financial performance can mediate the frequency of audit committee meetings to firm value. Green accounting disclosures have been proven to moderate (weaken) financial performance to firm value.

Keywords: corporate governance mechanisms; financial performance, firm value, green accounting disclosure

DOI: 10.7176/RJFA/10-24-16

Publication date: December 31^st 2019