The Implementation of Good Corporate Governance (GCG) and Firm Size on Firm Value with Sustainability Report as an Intervening Variable

This research goal is to examine the influence of Good Corporate Governance (GCG), which is proxied by managerial ownership and institutional ownership, as well as company size (firm size) on company value (firm value) with sustainability reports as an intervening variable. This research focuses on manufacturing companies listed on the Indonesia Stock Exchange (BEI) using a quantitative approach and secondary data obtained from the company's annual reports from 2019 to 2021. Data analysis was carried out using multiple linear regression tests and path analysis to test direct and indirect relationships between research variables. The research results show that managerial ownership and company size have a significant influence on company value. However, institutional ownership does not show a significant influence on firm value. Furthermore, this research also found that sustainability reports are not influenced by managerial ownership, institutional ownership, or company size. Nevertheless, sustainability reports are proven to have a significant effect on company value, indicating that companies that publish comprehensive sustainability reports tend to have higher company value. Path analysis reveals that institutional ownership has an indirect influence on firm value through sustainability reports. This shows that institutional ownership can encourage companies to improve the quality of their sustainability reports, which in turn increases company value. However, managerial ownership and company size do not have an indirect influence on company value through sustainability reports.