The Effect of Good Corporate Governance and Intellectual Capital Mechanism On Financial Performance with Profit Management as A Mediation Variable

Authors

  • Sarah Septia Fatimah Faculty of Economics and Business, Universitas Mercu Buana, Jakarta, Indonesia
  • Erna Setiany Faculty of Economics and Business, Universitas Mercu Buana, Jakarta, Indonesia

Keywords:

Good Corporate Governance Mechanism, Intellectual Capital, Profit Management, Financial Performance

Abstract

This study aimed to determine the influence of good corporate governance and intellectual capital mechanisms on financial performance with profit management as a mediating variable for the industrial sector listed on the Indonesian stock exchange in 2018 – 2021. The sample was selected using a purposive sampling technique so that 34 companies (188 company years) met the criteria selected as sample. Data analysis techniques were performed using multiple regression and hypothesis testing using eviews 9 and the sobel test. Based on the results of multiple regression analysis with a significance level of 5%, this study shows that only the independent board of commissioners and audit quality variables have a significant effect on financial performance. Other variables have no effect on financial performance. In this study, earnings management is not able to significantly mediate the influence between GCG and intellectual capital.

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Published

2023-03-18

Issue

Vol. 5 No. 2

Section

Research Article

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Fatimah, S. S., & Setiany, E. (2023). The Effect of Good Corporate Governance and Intellectual Capital Mechanism On Financial Performance with Profit Management as A Mediation Variable. Journal of Economics, Finance and Accounting Studies , 5(2), 25-39. https://al-kindipublishers.org/index.php/jefas/article/view/5562