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The Impact of Financial Performance and Capital Structure on Company Value With Good Corporate Governance as A Moderation In Foods and Beverages Sector Companies on The Idx In The 2020-2024 Period

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Muklis M(1Mail),
(1) Management Study Program, Sultan Syarif Kasim State Islamic University of Riau,

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Available online: 2026-09-28  |  Published : 2026-09-28
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Abstract


After accounting for the moderating effect of institutional ownership, this study analyzes the correlation between firm value, return on assets (ROA), and capital structure (DER). The financial statements of companies listed on the Indonesia Stock Exchange between 2020 and 2024 form the basis for this conclusion. This study employed a rational sampling strategy combined with a quantitative ratio scale approach. Consequently, 55 companies in the food and beverage industry were selected to participate in the survey. SmartPLS 4.1.1.4, specifically the SEM-PLS method, was used for data analysis. The study found a positive and statistically significant relationship between a company's financial performance and its market valuation. Good corporate governance and capital structure are not the primary factors determining a company's value. Financial performance and capital structure will continue to have a significant impact on company value, regardless of the strength of corporate governance.

Keywords


Financial Performance, Return on Assets , Capital Structure, Debt to Equity Ratio , Good Corporate Governance , Institutional Ownership, Firm Value, Tobin's Q

References


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