Good Corporate Governance and Financial Performance Influence on Firm Value: Indonesian Infrastructure Sector Analysis

Abstract

This investigation examines the influence of corporate governance mechanisms and financial performance on organizational value among infrastructure sector entities listed on the Indonesia Stock Exchange throughout 2020-2023. Through purposive sampling methodology, 31 corporations were identified from a population of 51 enterprises, generating 124 observations. Data obtained from annual financial disclosures were analyzed using SPSS version 26. Results indicate that institutional ownership demonstrates positive but statistically non-significant effects on organizational value, while the board of commissioners exhibits negative significant influence. Conversely, financial performance shows a positive significant impact. The determination coefficient reveals that independent variables collectively explain 11.8% of organizational value variation, with the remaining 88.2% attributed to unexamined factors.