ANALISIS PENGARUH RETURN ON ASSET DAN GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

Abstract

The return on asset ratio is one way to analyze financial reports to attract investors' trust. Besides financial reports, good corporate governance (GCG) implementation is needed by a company to increase its performance and actualize the parties' interests in the company, therefore, has a positive impact on firm value. Investors solicitude the firm value concerning the stock. The higher the firm value, the more investors will invest. Firm value in this research was measured by price to book value (PBV). Facilities construction for covid-19 and the increased infrastructure planning made the basic and chemical industry sector have enhanced thus becoming this research object. Based on previous research, related to ROA, GCG, and firm value, has heterogeneous results, and writers want to reexamine to know the effect between ROA and GCG on PBV. This research uses an associative form, by collecting 385 populations of annual reports for the period 2016 till 2020 from www.idx.co.id and www.sahamok.net and selected by purposive-judgmental sampling into 200 annual reports. This research uses SPSS 24 application and the results showed the independent variables simultaneously and ROA partially have a significant effect on firrm value. However, independent commissioners and boards of directors do not significantly affect firm value.