GOOD CORPORATE GOVERNANCE AS A STRATEGIC MODERATOR OF FINANCIAL SUSTAINABILITY: A STUDY OF INDONESIA CORPORATIONS

This study aims to examine the effect of profitability, liquidity, capital structure, and dividend policy on firm value with good corporate governance as a moderating variable. The population of this study consists of manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2022. The data used are secondary data, and the research employs purposive sampling. The total population consists of 196 companies, and 30 companies that meet the criteria were selected. The data analysis methods used in this study include descriptive statistical analysis, hypothesis testing, and moderated regression analysis (MRA) using the Eviews 12 data analysis software. The research results went through several stages, starting with the determination of the model to be used. The results of the Chow test and Hausman test, which compared the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), indicated that the best model selected was the Fixed Effect Model (FEM). From this model, the results of the moderation regression test showed that only the variables of profitability and capital structure on firm value could be moderated by Good Corporate Governance (GCG), which is referred to as pure moderation. For the variables of liquidity, capital structure, and dividend policy, none of them could be moderated by GCG.