Main Article Content
Abstract
This study aims to analyze the impact of investment decisions, funding strategies, and financial performance on firm value in the Indonesian banking sector, while examining the moderating role of Good Corporate Governance (GCG) using Moderated Regression Analysis (MRA). Data were collected from banking companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023 through purposive sampling. The analysis was conducted using MRA to examine the relationships between the independent variables (investment decisions, funding strategies, and financial performance), the dependent variable (firm value), and the moderating interactions of GCG. The results show that investment decisions have an effect but are not significant on firm value, while funding strategies and financial performance have a significant influence. The key finding from the moderation analysis reveals that GCG strengthens the relationship between financial performance and firm value. However, GCG fails to moderate the relationship between investment decisions and firm value, as well as between funding strategies and firm value. The implications of this study emphasize the importance of implementing GCG to enhance firm value through optimizing funding strategies and improving financial performance. For practitioners, these findings encourage the integration of GCG principles into financial decision-making. At the same time, for regulators, the results can serve as a basis for formulating policies that support better GCG implementation in the banking sector. For academics, this research provides a foundation for further studies on factors influencing firm value and the role of GCG across various industries
Keywords
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Adhitya, D., Ardini, L., & Wahidahwati. (2022). The effect of investment decisions, funding, and profitability on company value with corporate governance as moderating variables. Jurnal Administrare: Jurnal Pemikiran Ilmiah Dan Pendidikan Administrasi Perkantoran, 9(1), 77–94. https://doi.org/https://doi.org/10.26858/ja.v9i1.33091
- Afşar, A., & Karaçayir, E. (2020). Effect of invesment and financing decisions on firm value; example of BIST Industrial Index. In Usak University Journal Of Social Sciences (Vol. 13, Issue 2, pp. 13–24). https://dergipark.org.tr/en/download/article-file/1154095
- Amirullah, W. H., & Pristiana, U. (2022). Analysis of Investment Decisions and Funding Decisions on Firm Value with Good Corporate Governance as a Moderating Variable in Food and Beverage Listed on IDX 2017-2020. JEM17: Jurnal Ekonomi Manajemen, 7(2), 213–234. https://doi.org/10.30996/jem17.v7i2.7541
- Andriyani, I., Zuliyana, M., Aryani, D. S., & Agustina, E. (2023). Effect of investment decisions, funding decisions, and inflation rate on company value in the basic and chemical industry sector listed on the Indonesia Stock Exchange for the 2017-2021 period. Best Journal of Administration and Management, 1(3), 106–110. https://doi.org/https://doi.org/10.56403/bejam.v1i3.65
- Aprilia, N., & Wahjudi, E. (2021). Pengaruh kinerja keuangan terhadap nilai perusahaan dengan variabel moderasi corporate governance. Jurnal Riset Akuntansi Dan Keuangan, 9(3), 525–534. https://doi.org/10.17509/jrak.v9i3.32512
- Astawinetu, E. D., Sri Handini, & Istiono. (2020). Analysis of the effect of funding decissions, macroeconomic, and profitability on the value of food and beverages companies in the Indonesia Stock Exchange period 2015-2018. Ekspektra : Jurnal Bisnis Dan Manajemen, 4(1), 35–44. https://doi.org/https://doi.org/10.25139/ekt.v4i1.2659
- Bahrun, M. F., Tifah, & Firmansyah, A. (2020). The Influence of Funding Decisions, Investment Decisions, Dividend Policy, and Free Cash Flow on Company Value. Jurnal Ilmiah Akuntansi Kesatuan, 8(3), 263–276. https://doi.org/https://doi.org/10.37641/jiakes.v8i3.358
- Bon, S. F., & Hartoko, S. (2022). The effect of dividend policy, investment decision, leverage, profitability, and firm size on firm value. European Journal of Business and Management Research, 7(3), 7–13. https://doi.org/https://doi.org/10.24018/ejbmr.2022.7.3.1405
- Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management (15th ed). Cengage Learning.
- Chaidir, R., Rosidi, & Andayani, W. (2021). The effect of policy on debt and profitability with firm values with corporate governance as moderate variables. International Journal of Research in Business and Social Science, 10(8), 39–46. https://doi.org/https://doi.org/10.20525/ijrbs.v10i8.1492
- CNBC. (2022). Ada ancaman resesi, bos bank BUMN optimistis tatap 2023. CNBC Indonesia. https://www.cnbcindonesia.com/market/20221213151731-17-396512/ada-ancaman-resesi-bos-bank-bumn-optimistis-tatap-2023.
- Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42(June), 689–709. https://doi.org/10.1016/j.ribaf.2017.07.011
- Djuminah, Rahmawati, Widagdo, A. K., Hartoko, S., Honggowati, S., Nurlaela, S., & Kiswanto, K. (2023). Investment, funding decisions, firm value with corporate governance as variable moderation in Indonesia Stock Exchange. Accounting Analysis Journal, 12(2), 94–101. https://doi.org/10.15294/aaj.v12i2.71005
- Hardiningsih, P., Srimindarti, C., Anggana Lisiantara, G., & Kartika, A. (2024). How does environmental, social, governance disclosure and political connection performance affect firm value? An empirical study in Singapore. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2377764
- Hariyanur, R., Septiyanti, R., & Idris, A. Z. (2022). The effect of investment and financing decision, dividend policy and cost of capital on Indonesian firm value. Asian Journal of Economics And Business Management, 1(2). https://doi.org/https://doi.org/10.53402/ajebm.v1i2.121
- Heling, P., & Sri, L. H. (2024). The influence of financial distress, earnings management, and financial performance on firm value with good corporate governance as a moderating variable. Eduvest - Journal of Universal Studies, 4(10), 9375–9393. https://doi.org/10.57235/jetish.v3i2.3368
- Hikmah, V. L., & Susilo, D. (2024). Pengaruh good corporate governance, capital adequacy ratio dan size terhadap return saham. Jorunal of Accounting and Management’s Student (JAM’S), 1(2), 1–11. https://journals.unikal.ac.id/index.php/jams/article/view/113
- Investor.id. (2023). Saham bank berguguran, IHSG terkoreksi dalam di awal perdagangan. Investor.Id. https://investor.id/market/324416/saham-bank-berguguran-ihsg-terkoreksi-dalam-di-awal-perdagangan.
- Irwanti, N. P. P. W., & Ratnadi, N. M. D. (2021). Good corporate governance moderate the effect of financial performance on firm value. International Research Journal of Management, IT & Social Sciences, 8(1), 91–101.
- Katadata. (2022). Ancang-Ancang Indonesia Hadapi Resesi Global 2023. Katadata.
- Kharisma, A. B., & Indriyani, F. (2023). The role of good corporate governance in the relationship between investment and funding activities on the value of sharia shares. Indonesian Journal of Islamic Economics Research, 3(1), 59–72. https://doi.org/10.18326/ijier.v4i1.7306
- Lestari, S., Febriansyah, R., & Firmansyah, E. A. (2024). Analysis determination of firm value : Corporate governance perception index as moderating variable. The International Journal of Applied Business (TIJAB), 8(2), 212–225. https://doi.org/https://doi.org/10.20473/tijab.v8.i2.2024.55008
- Marsella, P., & Pangestuti, D. C. (2023). Assessment of bank’s health using analysis risk profile, good corporate governance, earnings, capital (RGEC). International Journal of Research in Business and Social Science (2147- 4478), 12(3), 237–248. https://doi.org/10.20525/ijrbs.v12i3.2571
- Meutia, R., Apridar, Mursidah, Mastuti, R., & Fuad, M. (2021). Investment decisions, financing and dividends to increase firm value : a case study of manufacturing companies in Indonesia. Economic Annals-Xxi, 194(11–12), 67–72.
- Mohammed, Z. O., Kareem, M., & Ani, A. (2020). The effect of intangible assets, financial performance and financial policies on the firm value : Evidence from Omani Industrial Sector. Contemporary Economics, 14(3), 379–391. https://doi.org/10.5709/ce.1897-9254.411
- Ndatika, U. W., Purwidianti, W., Tubastuvi, N., & Financial, K. K. (2024). The influence of financial performance and company size on company value with good corporate governance as a moderating variable. Jurnal Ekonomi Dan Bisnis Digital (MINISTAL), 3(2), 231–246.
- Nugraha, N. M., Novan, D., Nugraha, S., & Sapitri, S. (2020). The effect of funding, investment and dividend policies on firm value in the manufacturing industry sectors. Solid State Technology, 63(3), 3858–3868.
- Pamungkas, I. D., Purwantoro, Sari, M. P., & Hersugondo. (2023). Corporate governance and financial performance on firm value: The case of Indonesia. WSEAS Transactions on Business and Economics, 20, 92–103. https://doi.org/10.37394/23207.2023.20.10
- Priharta, A., Buana, Y., Diana, D., & Sintarini, F. (2022). Corporate governance dan kinerja keuangan : Dampaknya pada nilai perusahaan. Jurnal Akuntansi Dan Governance, 3(1), 16. https://doi.org/10.24853/jago.3.1.16-28
- Rachmadani, A. P., Ratnawati, T., Ayu, I., & Brahmayanti, S. (2024). The effect of investment decisions, funding decisions, operational decisions on value of the firm through financial distress as intervening and good corporate governance (GCG) as moderating. Internatioan Journal of Economics (IJEC), 3(1), 563–580. https://doi.org/10.55299/ijec.v3i1.852
- Ramadhani, B. A., & Nur, D. I. (2024). Analysis of company value and financial performance as intervening variables in property, real estate and building construction companies on the Indonesia Stock Exchange. International Journal of Economics (IJEC), 3(1), 581–589. https://doi.org/10.55299/ijec.v3i1.867
- Robiyanto, R., Putra, A. R., & Lako, A. (2021). The effect of corporate governance and intellectual capital toward financial performance and firm value of socially responsible firms. Contaduría y Administración, 66(1), 1–24. https://doi.org/10.22201/fca.24488410e.2021.2489
- Saddam, M., Ali, O., & Ali, J. (2021). Pengaruh profitabilitas terhadap nilai perusahaan (Studi empiris pada perusahaan sektor industri barang konsumsi di Bursa Efek Indonesia tahun 2017-2019 ). Jurnal Neraca Peradaban, 1(2), 128–135. https://doi.org/https://doi.org/10.55182/jnp.v1i2.36
- Said, H. S., Khotimah, C., Ardiansyah, D., Khadrinur, H., & Putri, M. I. (2022). Teori agensi : Teori agensi dalam perspektif akuntansi syariah. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(5), 2434–2439. https://doi.org/10.32670/fairvalue.v5i5.2757
- Saputri, I. A., & Supramono, S. (2021). Pengaruh kinerja keuangan terhadap nilai perusahaan dengan profitabilitas sebagai variabel intervening. Jurnal Riset Ekonomi Dan Bisnis, 14(2), 117. https://doi.org/10.26623/jreb.v14i2.4228
- Satt, H., Chetioui, Y., Ouahidi, O., Bodolica, V., & Lamiri, D. (2023). Capital expenditure and firm value in the MENA region: the role of market competition and information asymmetry. Macroeconomics and Finance in Emerging Market Economies. https://doi.org/10.1080/17520843.2022.2163564
- Sherine, C., Wiyanto, H., & Budiono, H. (2022). The effect of investment decision, funding decision, and profitability on the firm value of consumer goods industry registered in Indonesia Stock Exchange during 2017-2020. Proceedings of the Tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021), 653(Icebm 2021), 552–559. https://doi.org/10.2991/aebmr.k.220501.084
- Silitonga, R., & Marsono, A. D. (2024). The influence of intellectual capital and investment decision on firm value. Eduvest – Journal of Universal Studies, 4(4), 1890–1906. https://doi.org/https://doi.org/10.59188/eduvest.v4i4.1139
- Sugiyono, & Lestari, P. (2021). Sugiyono, Lestari, P. M. S (Sunarto, Ed.; 1st ed.). Alfabeta.
- Sumani, S., & Suryaningsih, I. B. (2022). The moderating role of good corporate governance : The influence of capital structure, profitability, dividend payment and inflation on the value of mining companies in Indonesia access to success. General Management, 23(188), 189–197. https://doi.org/10.47750/QAS/23.188.25
- Susanto, M. Y. P., & Mujiyati. (2024). Effect of investment decisions, funding decisions, and dividend policy on the value of the company. Dinasti International Journal of Economics, Finance and Accounting (DIJEFA), 5(3), 1762–1771. https://doi.org/https://doi.org/10.38035/dijefa.v5i3.3116
- Suta, I. W. P., Anggya Agustina, P. A., & Sugiarta, I. N. (2016). Pengaruh kebijakan utang pada nilai perusahaan dengan kepemilikan institusional sebagai variabel moderasi. (Studi pada perusahaan manufaktur di Bursa Efek Indonesia). Jurnal Bisnis Dan Kewirausahaan, 12(3), 173–185. https://ojs.pnb.ac.id/index.php/JBK/article/view/181
- Syamsudin, S., Setiadi, I., Santoso, D., & Setiany, E. (2020). Capital Structure and Investment Capital Structure and Investment Decisions on Firm Value with Profitability Decisions on Firm Value with Profitability as a Moderator as a Moderator. Jurnal Riset Akuntansi Dan Keuangan Indonesia, 5(3), 287–295. http://journals.ums.ac.id/index.php/reaksi/index
- Taufik, A. R., Sanusi, A., & Assih, P. (2024). The role of financial performance, audit quality, and corporate social responsibility on firm value through cost of capital as mediation. 8th International Conference on Sustainability: Sustainable Economics, KnE Social Sciences, 181–198. https://doi.org/10.18502/kss.v9i29.17250
- Tulcanaza-Prieto, A. B., Lee, Y., & Anzules-Falcones, W. (2024). The moderating role of corporate governance in the relationship between leverage and firm value: Evidence from the Korean Market. Risks, 12(1). https://doi.org/10.3390/risks12010011
- Yuswandani, A. E., Tubastuvi, N., Fitriati, A., Darmawan, A., & Jaroenwanit, P. (2024). Profitability as a moderator: Assessing the influence of capital structure,investment decision, and firm size on firm value. Jurnal Riset Akuntansi Dan Keuangan Indonesia, 9(1), 125–137. https://doi.org/https://doi.org/10.23917/reaksi.v9i1.4044
- Zaki, P. F., Widiyanti, M., & Andriana, I. (2023). The influence of investment and funding decisions on company value with intervening variables of dividend policy in companies listed on the Jakarta Islamic Index. Injuruty: Interdiciplinary Journal and Humanity, 2(8), 674–679. https://doi.org/https://doi.org/10.58631/injurity.v2i8.115.