Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Profitability: The Role of Cost of Capital as Mediation
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Profitability: The Role of Cost of Capital as Mediation
Corporate Governance and Profitability: The Role of Cost of Capital as Mediation
Subject
Corporate governance, profitability, cost of capital, growth
Description
This study aims to analyze the effect of internal corporate governance mechanisms with the cost of capital as mediating variable and profitability as a dependent variable in companies listed on the Indonesia Stock Exchange during period 2015 to 2020. This study uses secondary data collected from Bloomberg's financial data and the company's annual report. A total of 807 companies as a population by sampling with purposive sampling
method in order to obtain 300 companies from various sectors. The analysis method employs a structural equation model Structural Equation Modeling (SEM) based on the Partial Least Square (PLS). Based on hypothesis testing through the t-statistical test with a bootstrapping method, the results show that corporate governance has a positive relationship with profitability, and the cost of capital has a fully mediating role in the relationship between corporate governance and profitability.
method in order to obtain 300 companies from various sectors. The analysis method employs a structural equation model Structural Equation Modeling (SEM) based on the Partial Least Square (PLS). Based on hypothesis testing through the t-statistical test with a bootstrapping method, the results show that corporate governance has a positive relationship with profitability, and the cost of capital has a fully mediating role in the relationship between corporate governance and profitability.
Creator
Hersugondo Hersugondo , Eka Febiyanti
Source
DOI: 10.26905/jkdp.v26i2.7548
Publisher
Universitas Merdeka Malang
Date
April 2022
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Hersugondo Hersugondo , Eka Febiyanti, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance and Profitability: The Role of Cost of Capital as Mediation,” Repository Horizon University Indonesia, accessed December 23, 2024, https://repository.horizon.ac.id/items/show/4850.
Corporate Governance and Profitability: The Role of Cost of Capital as Mediation,” Repository Horizon University Indonesia, accessed December 23, 2024, https://repository.horizon.ac.id/items/show/4850.