Title: Opportunities of investment and corporate governance with variable mediation in the form of profit quality of corporate value

Authors: Susi Handayani

Addresses: Surabaya State University: Universitas Negeri Surabaya, Lidah Wetan Street, Lidah Wetan, Lakarsantri Regency, Surabaya City, East Java 60213, Indonesia

Abstract: This study is to analyse the effects of investment opportunity set, independent commissioner and audit committee on firm value through earnings response coefficient. The data used in this study was secondary data in the form of audited financial statements, annual company reports, and report summaries of mining companies listed in Indonesian Stock Exchange in 2014-2016. Based on the criteria, total sample used in this study was 60 samples. Investment opportunity set (IOS) had positive and significant effect on firm value. On the other hand, proportion of independent commissioners did not affect firm value. It could be because the effectiveness of the function of independent commissioner in monitoring managerial performance was not only seen from the proportion of independent commissioners. The originality is because this study using earnings response coefficient as a mediating variable is new in research connecting IOS, independent commissioner and audit committee with firm value.

Keywords: investment opportunity; corporate governance; firm value; quality of profit.

DOI: 10.1504/IJBEX.2023.134825

International Journal of Business Excellence, 2023 Vol.31 No.3, pp.392 - 411

Received: 29 Apr 2020
Accepted: 30 May 2020
Published online: 14 Nov 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article