THE EFFECT OF CORPORATE GOVERNANCE (MANAGERIAL OWNERSHIP, INSTITUTIONAL OWNERSHIP, NUMBER OF AUDIT COMMITTEES) & CORPORATE SUSTAINABILITY ON FIRM VALUE USING TOBIN’S Q IN LQ45 COMPANIES FOR THE PERIOD 2019–2023

Abstract

This study examines the effect of corporate governance and corporate sustainability on company value as measured using Tobin's Q. The independent variables used include managerial ownership, institutional ownership, the number of audit committees, and corporate social responsibility. This study is based on secondary data from 12 companies with 60 observations during 2019-2023. The focus of this study is companies in the non-financial sector that have been in the LQ45 index for at least four years. Data was collected from annual reports and sustainability reports obtained from the Indonesia Stock Exchange (IDX) or the official websites of each company. Multiple linear regression was used to test the significance and importance of managerial ownership, institutional ownership, the number of audit committees, and corporate social responsibility in LQ45 companies for the period 2019-2023. The results show that managerial ownership, institutional ownership, and corporate social responsibility have a positive and significant effect on firm value. Meanwhile, the number of audit committees does not affect firm value. The limitations of this study are that it only focuses on non-financial companies listed on the LQ45, and the research period is only five years. Suggestions for future researchers include adding other variables not mentioned in this study, expanding the scope of the research companies, and using other company value measurements.