| The Effect of Good Corporate Governance on Firm's Value (Case Study on Listed Companies in Indonesia Stock Exchange Report Period in 2011 -2015) and Audit Quality as Moderating VariableThe objective of study is to examine the effect of Good Corporate Governance implementation which indicated by the score of Corporate Governance Perception Index (CGPI) and audit quality on the firm's value of listed companies in Indonesia Stock Exchange which is reported in 2011 - 2015. To test these variables, the authors used datas of listed companies in Indonesia Stock Exchange which is on the list of CGPI assessment for the years 2010 to 2014 and using 21 samples of the company. The determination of the samples are based on certain criteria in accordance with desired by the author. The dependent variable in this study is firm's value that can be obtained by using Tobin's Q formula. The results indicate that Good Corporate Governance has a positive and significant effect on firm's value. The results also indicate that the audit quality has a positive and significant effect too on firm's value. As a moderating variable, audit quality has been proven to improve the interaction between Good Corporate Governance and firm's value. Nevertheless the authors recognize that this study has the problem of data limitation, because public companies whose willing to participate in CGPI assessment and pass the selection is very limited. Based from these limitation, it is necessary to explore other assessment that is similar to CGPI, that is able to assess implementation of Good Corporate Governance comprehensively. |