The Effect of Corporate Governance Mechanisms on Financial Performance With Capital Structure as an Intervening Variable
Abstract
This research aims to determine the effect of corporate governance mechanisms proxied by (managerial ownership, institutional ownership and independent board of commissioners) on financial performance with capital structure as an intervening variable. Financial performance is measured using a profitability ratio, proxied by Return On Assets and capital structure proxied by the Debt to Equity ratio. The research population includes property and real estate companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The sample selection method used was purposive sampling and 32 co mpanies were selected with a total sample of 105 research data. The analysis technique used is multiple linear regression with SPSS version 26 software and path analysis with the help of an online sobel calculator. The results showed that managerial ownership, independent board of commissioners had no significant effect on financial performance, while institutional ownership had a positive effect on financial performance. Managerial ownership and independent board of commissioners have a significant positive effect on capital structure, while institutional ownership has no effect on capital structure. The capital structure does not act as a mediator between corporate governance mechanisms and financial performance
Downloads
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Ratna Ajijah, Lia Uzliawati, Tri Lestari

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).