Stock Prices Affected by Good Corporate Governance and Financial Performance

• Yenni Fayanni PhD Student of Faculty of Economics and Business, Universitas Airlangga Indonesia, Jl. Airlangga No.4, Airlangga, Gub
• Soegeng Soetedjo Lecturer of Faculty of Faculty of Economics and Business, Universitas Airlangga Indonesia, Jl. Airlangga No.4, Airlangga, Gubeng, surabaya, East Java 60286 Indonesia

Palabras clave: GCG, Financial Performance, Stock Prices JEL Classification, O10, O14, A12, C11, C12

Resumen

In this study, the authors propose to evaluate the application of
Good Corporate Governance and Financial Performance to the stock
prices of manufacturing companies listed on the Indonesia Stock
Exchange. The research method used is descriptive method with a
quantitative approach. In this statement, the population used in this
study is the financial statements of manufacturing companies listed on
the Indonesian stock exchange from 2016 to 2018, the technique of
determining the sampling uses Purposive Sampling. This research data
uses secondary data, financial statements of manufacturing companies
listed on the Indonesia stock exchange from 2016 to 2018. All data
sources were obtained from the website of the Indonesia Stock
Exchange at https://www.idx.co. ID, company website as well as
Google search. Our analysis reveals that Independent Commissioners
and Managerial Ownership, PBV and NPM affect stock prices, while
for Institutional Ownership does not affect stock prices. The value of
implementing Good Corporate Governance and Financial Performance
on the price of manufacturing companies listed on the Indonesia Stock
Exchange is 64.5%, while 35.4% is explained by other factors which
are not included in this study.