Efek Moderasi Profitabilitas Pada Pengaruh Good Corporate Governance Terhadap Firm Value

This study aims to Good Corporate Governance (GCG) as a concept proposed to overcome agency problems serves to foster investor confidence in the company. In Indonesia, GCG is legally regulated in Law no. 40 of 2007 concerning limited liability companies which contains 5 (five) principles, namely transparency, accountability, independence, as well as fairness and equality. These five components are important because the consistent application of GCG principles has been proven to improve the quality of financial reports (Sudarmanto, et al., 2021). The National Committee for Corporate Governance Policy (KNKCG) is of the opinion that companies in Indonesia have a responsibility to implement GCG standards that have been applied at the international level. However, despite realizing the importance of GCG, many parties report that companies are still low in applying these principles. There are still many companies that apply the principles of GCG because of regulatory incentives and avoiding existing sanctions compared to those who consider these principles as part of the company culture (OJK, 2021). Keywords: Good Corporate Governance, accountability, committee for corporate governance policy, company culture, firm value