Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia

Research Article

Impact of Selected Factors Towards Shareholder Value Creation

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  • @INPROCEEDINGS{10.4108/eai.7-10-2021.2316221,
        author={Antonius  Antonius and Karina  Harjanto},
        title={Impact of Selected Factors Towards Shareholder Value Creation},
        proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2022},
        month={4},
        keywords={audit quality capital structure economic value added free cash flow good corporate governance shareholder value creation},
        doi={10.4108/eai.7-10-2021.2316221}
    }
    
  • Antonius Antonius
    Karina Harjanto
    Year: 2022
    Impact of Selected Factors Towards Shareholder Value Creation
    ICEBE
    EAI
    DOI: 10.4108/eai.7-10-2021.2316221
Antonius Antonius1,*, Karina Harjanto1
  • 1: Universitas Multimedia Nusantara
*Contact email: antonius3@student.umn.ac.id

Abstract

The purpose of this research was to obtain empirical evidence about the effect of capital structure, Good Corporate Governance, Free Cash Flow, and audit quality towards shareholder value creation. The sample in this research was selected by using purposive sampling. The secondary data were analyzed by using multiple linear regression method. The total amount of sample in this research were 9 companies in trade, service, and investment sector. The results of this research were that capital structure had no negative effect towards shareholder value creation, board size had significant negative effect towards shareholder value creation, commissioner independence and audit quality had no positive effect towards shareholder value creation, and FCF had significant positive effect towards shareholder value creation. The implication of this research was that company needed to maintain an adequate level of free cash flows in order to be able to pay debt, reduce invested capital, and increase EVA.