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This research investigates the influence of Good Corporate Governance (GCG) on firm value, with financial performance acting as a mediator, specifically within business entities in the Energy Sector registered on the IDX from 2018 to 2022. The findings reveal that GCG, which is assessed through the board of directors, independent commissioners, and institutional stocks holding, enhances both firm value and financial performance. Furthermore, financial performance, as indicated by Return on Equity (ROE), serves as a mediating factor between GCG and firm value. This research underscores the critical role of robust GCG practices in achieving superior financial performance and increased firm value. The findings are useful for policy makers, practitioners, and stakeholders in optimizing GCG practices in the energy sector.
Kiradi et al. (Fri,) studied this question.