The Effect of Good Corporate Governance Mechanism, Leverage, and Firm Size on Firm Value

The objectives of this research are to examine (1) theeffect of the good corporate governance mechanism (auditcommittee, size of the commissioner’s board, and proportion ofindependent commissioner’s board) on firm value. (2) The effectof the leverage on firm value, (3) The effect of the firm size onfirm value, and (4) The effect of good corporate governancemechanism (audit committee, size of the commissioner’s board,and proportion of independent commissioner’s board), leverage,and firm size on firm value. The population in this research is theentire manufacture firm which listed in IDX 2007-2011.Sampling technique used in this research is judgment sampling,with the sum of the sample 28 firm for 5 years (2007-2011).Double linier regression is used as data analysis technique, both ttest and F test. The results of this research are (1) Goodcorporate governance’s mechanism, which including the size ofcommissioner’s board affect on the firm value, meanwhile auditcommittee and the proportion of independent commissioner’sboard doesn’t affect on the firm value; (2) Leverage doesn’taffect on the firm value; (3) The firm size affects on the firmvalue; and (4) good corporate governance mechanisms (auditcommittee, size of the commissioner’s board, and proportion ofindependent commissioner’s board), leverage, and firm sizeaffect on the firm value