Analysis of The Influence of Corporate Governance and Financial Performance on Firm Value

The energy sector plays a crucial role in increasing the productivity of companies while driving a country's economic growth. Throughout 2024, the sector recorded a positive performance with an increase in the energy stock index (IDX Energy) of 28.01%, despite the decline in the Jakarta Composite Index (JCI). This study aims to examine how corporate governance and financial performance contribute to increasing firm value. Using a literature review approach, the analysis was based on previous studies to understand the relationship between governance, profitability and firm value. The study results show that the implementation of good governance, such as the principles of transparency and accountability, can increase investor confidence, reduce agency conflicts, and optimize company performance. On the other hand, profitability as an indicator of financial performance is proven to have a positive impact on firm value, reflecting market confidence and long-term growth potential. The implications of this study emphasize the importance of implementing effective governance and increasing profitability to strengthen the competitiveness of companies at the national and international levels.