GOOD CORPORATE GOVERNANCE RELATION TO TOBIN’S Q: STUDY ON THE PROPERTY AND REAL ESTATE SUB SECTOR ON THE INDONESIAN STOCK EXCHANGE

Abstract

Good Corporate Governance (GCG) practices aim to create and provide added value for company stakeholders and in a sustainable manner in the long term it is hoped that this will increase company value. This research aims to explain the relationship between GCG and company value as proxied by Tobin's Q and which factors of GCG consist of managerial ownership (MO), institutional ownership (IO), board of commissioners (BC), independent board of commissioners (IBC) and The audit committee (AC) has the most dominant relationship with Tobin's Q. The object of this research is companies in the property and real estate sub-sector on the Indonesia Stock Exchange (IDX) for the 2017-2022 period. By using purposive sampling, 17 companies were obtained as research targets. This research uses descriptive quantitative and multiple regression analysis with SPSS version 23 software. After passing the classical assumption test, from the partial t test it is known that except MO, the other GCG variables namely IO, BC, IBC and AC have a significant relationship with Tobin's Q, with the most dominant factor is the independent board of commissioners (IBC). IBC is the company representative who supervises the board of directors in managing its performance and policies. In other words, IBC's task is to protect the interests of the company, investors, and shareholders. This research shows that the higher the IBC value, the higher the intensity of supervision of the company so that the company will be more controlled and transparent and will increase the company's performance and value. From the simultaneous F test, the results show that overall, the GCG variable has a significant relationship with Tobin's.