Financial Decision-making and Firm Value Examining the Moderating Effect of Good Corporate Governance in a State-Owned Enterprise

Corporate Governance is the process and structure used to increase business prosperity and corporate accountability, with the primary goal of realizing the value of shareholders in the long-term interests of other stakeholders. The research aims to obtain empirical evidence about the influence of investment decisions, funding decisions, and dividend policy on firm value. It also seeks to examine the role of good corporate governance in moderating the impact of investment decisions, funding decisions, and dividend policies on firm value. The data used in this research were secondary data obtained from the financial statements of Indonesian SOE companies listed on the Indonesia Stock Exchange in the 2014-2018 period. Good corporate governance proxies are determined by factor analysis to analyze the proxy of good corporate governance, namely Institutional Ownership; Managerial ownership; Independent Commissioner, Audit Committee. The Moderated Regression Analysis (MRA) to test the moderating effect of good corporate governance. The results show that investment decisions have a positive impact on firm value, funding decisions have a negative impact on firm value, dividend policy does not affect firm value, good corporate governance does not moderate the relationship of investment decisions and funding decisions on firm value, and good corporate governance reinforces favorable influence dividend policy on company value.