Affiliation:
1. Universitas Dian Nuswantoro (UDINUS), Indonesia
2. Universitas Dian Nuswantoro (UDINUS), Indonesia
Abstract
Firm value can increase market confidence, not only for current performance but also for the company’s prospects in the future Fama (1978). To prove empirically the effect of chief executive officer (CEO) compensation and governance disclosure on firm value moderated by integrated reporting (IR) is the aim of this study. The study population is Asian companies registered in the Integrated Reporting database examples. Based on the specified sample criteria, 135 secondary data were obtained from 2019–2021. The analysis tool used to process the data is WarpPLS 7.0. This study gives the result that firm value is influenced by governance disclosure and IR moderates the effect of governance disclosure on firm value, while CEO compensation has no effect on firm value. The practical implications of this study are to confirm the importance of corporate governance disclosure, the role of IR in increasing the value of companies, and its impact on investment decisions. In addition, this study is also useful for regulators in relation to the preparation of corporate financial reporting policies so that they are transparent and accountable.
Reference37 articles.
1. Akbar, S., Poletti-Hughes, J., El-Faitouri, R., & Shah, Z. S. A. (2016). More on the relationship between corporate governance and firm performance in the UK: Evidence from the application of generalized method of moments estimation. Research in International Business and Finance, 38, 417–429. https://doi.org/10.1016/j.ribaf.2016.03.009
2. Akileng, G. (2014). The efficacy of corporate governance in reducing opportunistic accounting earnings manipulations. Research Journal of Finance and Accounting, 5(24), 44–70. https://www.iiste.org/Journals/index.php/RJFA/article/view/18493/19038
3. Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
4. Basuroy, S., Gleason, K. C., & Kannan, Y. H. (2014). CEO compensation, customer satisfaction, and firm value. Review of Accounting and Finance, 13(4), 326–352. https://doi.org/10.1108/RAF-11-2012-0120
5. Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? The Review of Financial Studies, 22(2), 783–827. https://doi.org/10.1093/rfs/hhn099