This research performed in order to test the influence of Corporate Governance toward Value of the Firm through Debt to Equity Ratio (DER) & Net Profit Margin (NPM) in Indonesian Stock Exchange. Data that used in this research are data from nine (9) companies which are consistently included on 2010-2013 Corporate Governance Perception Index (CGPI) score list. This research used path analysis on AMOS 18.00 and the data are achieved from Indonesian Capital Market Directory, company's annual financial report, and CGPI (which are directly achieved from The Indonesian Institute for Corporate Governance/nCG). The result of this research shows Good Corporate Governance and DER has significant negative impact on Value of the Firm; meanwhile NPM has no significant impact on Value of the Firm. The result also shows DER and NPM don't mediate Good Corporate Governance to Value of the Firm. Moreover, the result shows Good Corporate Governance has positive impact on DER and NPM. Based on the result of this research, investor can use the CGPI and DER as consideration in decision making investment. |