HERSUGONDO, Hersugondo (2022) Artikel Dr. HERSUGONDO, SE, MM: Corporate Governance and Profitability: The Role of Cost of Capital as Mediation. Jurnal Keuangan dan Perbankan, 26 (2). ISSN 2443-2687

Text (Artikel) (39) CORPORATE GOVERNANCE AND PROFITABILITY THE ROLE OF COST OF CAPITAL AS MEDIATION.pdf Download (978kB)

Abstract

This study aims to analyze the effect of internal corporate governance mechanisms with
the cost of capital as mediating variable and profitability as a dependent variable in
companies listed on the Indonesia Stock Exchange during period 2015 to 2020. This study
uses secondary data collected from Bloomberg's financial data and the company's annual
report. A total of 807 companies as a population by sampling with purposive sampling
method in order to obtain 300 companies from various sectors. The analysis method
employs a structural equation model Structural Equation Modeling (SEM) based on the
Partial Least Square (PLS). Based on hypothesis testing through the t-statistical test with a
bootstrapping method, the results show that corporate governance has a positive
relationship with profitability, and the cost of capital has a fully mediating role in the
relationship between corporate governance and profitability.

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