The Performance of Increase the Value State-Owned Enterprises Models in Indonesia

Authors

  • Mediaty ​
  • Yohanis Rura
  • Arifuddin ​
  • Agus Bandang
  • Anis Anshari Masud
  • Akil Alkhawari

Abstract

This study is intended to examine the model in order to increase the value of state- owned enterprises (BUMN) by analyzing financial performance, implementing Good Corporate Governance, disclosure of corporate social responsibility. Companies that have good financial performance, implement Good Corporate Governance and corporate social disclosure responsibility can increase the value of the BUMN companies in Indonesia so that investors will respond positively through the increase in the price of their shares, so the company's goal to improve prosperity and people's welfare can be achieved.

The specific objectives to be achieved in this study are analyzing financial performance, the application of Good Corporate Governance, disclosure of corporate social responsibility, and the value of BUMN companies in Indonesia. Then how is the impact of financial performance of state-owned companies by using corporate social responsibility disclosure and implementation of Good Corporate Governance as a moderating variable in ragka increasing  the value of state-owned in Indonesia enterprises in order to formulate policy recommendations to state-owned companies to encourage increasing the value of BUMN companies, which is efficient and effective so that the accountability of state-owned companies in Indonesia will be better. The SOE company performance measurement model used in this study is a quantitative approach with the aim of research is hypothesis testing. The test in this study uses secondary data. The population of this study was 22 state-owned companies listed on the Indonesia Stock Exchange (IDX). 17 samples were selected by purposive sampling. The analytical method used is multiple linear regression analysis and interaction testing, or often called the Moderated Regression Analysis (MRA). It is deemed necessary to assess the performance of state-owned companies in Indonesia, and is expected to provide a reference for increasing the value of state-owned companies in Indonesia, thus accountability of state-owned companies in Indonesia will be more well. The results showed that 1) there is a significant influence between the financial performances of state-owned companies in Indonesia to increase the value of state-owned companies, 2) Corporate social disclosure (CSRD) able to moderate the relationship between financial performance to the value of state-owned companies. CSRD will provide value added for state-owned enterprises because it will bring a positive image of company in the community, 3) Good Corporate Governance (GCG) as one of the elements of managerial ownership is not able to moderate the relationship between financial performance to the value of state-owned companies in Indonesia. This indicates that the market does not use managerial ownership information when conducting investment valuations of State-owned companies in Indonesia.

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Published

2019-12-27

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Articles