The Influence of Good Corporate Governance and Funding Decisions on Firm Value Through Investment Decisions in Manufacturing Sub-Sector Companies Listed on the Indonesia Stock Exchange

This study aims to analyze the influence of Good Corporate Governance and funding decisions on firm value, with investment decisions as a mediating variable, in manufacturing sub-sector companies listed on the Indonesia Stock Exchange (IDX). The approach used is a quantitative approach with the Structural Equation Modeling method based on Partial Least Squares (SEM-PLS). The data used are secondary data obtained from the companies' annual reports and financial statements. The results show that Good Corporate Governance has an effect on firm value, while funding decisions affect investment decisions. Investment decisions are also proven to influence firm value and serve as a partial mediator in the relationship between funding decisions and firm value. However, the influence of Good Corporate Governance on investment decisions, both directly and indirectly, is not statistically significant. These findings emphasize the importance of corporate governance and the integration of financial policies in enhancing firm value, particularly through effective investment allocation.