Jurnal Economia | 2021
Toward Firm Performance in Indonesia: The Role of Good Corporate Governance and Investment Opportunity Set
Abstract
This study examined the role of good corporate governance and investment opportunity set in maintaining firm performance. This study s sample population comprised 240 manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. The research sample was selected using a purposive sampling method. The data were analyzed by using structural equation modeling analysis (SEM). The results showed that good corporate governance in terms of board size had a negative effect on firm performance. Meanwhile, good corporate governance in terms of board independence and investment opportunity set had a positive effect on firm performance.