The Role Of Gcg In Moderating The Effect Of Financial Performance And Ownership Structure On Stock Prices

Elsa Widiani, Eliada Herwiyanti, Agus Sunarmo

Abstract


This study aims to determine and analyze the role of Good Corporate Governance (GCG) in moderating the effect of Capital Adequacy Ratio (CAR) and public ownership on the banking stock price listed on the Indonesia Stock Exchange from 2019 to 2022. The type of data used is secondary data in the form of financial statements of each company. The data was analyzed using Moderated Regression Analysis (MRA). The number of samples used in this study was 148. The sampling technique used in this study was purposive sampling. The results showed that: (1) CAR has a significant effect on stock prices. (2) Public ownership has no significant effect on stock prices. (3) GCG has a significant effect on stock prices. (4) GCG can strengthen the effect of CAR on stock prices. (5) GCG can strengthen the effect of financial performance on stock prices. This research implies that CAR has an effect on stock prices, which means that a higher percentage of CAR can increase stock prices. An increase in public ownership is not always followed by an increase in stock price. An increase in CAR and public ownership can increase stock prices when GCG also increases.

Keywords: Stock Price, Capital Adequacy Ratio, Public Ownership, Good Corporate Governance


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References


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