The Effects of Ownership Structure and Funding Decisions Toward Financial Performance Moderated by Good Corporate Governance in the Mining Companies Listed on the IDX in 2016-2020

Yolanda Andraini, Edyanus Herman Halim, Fitri
International Journal of Economics and Business Administration, Volume X, Issue 4, 3-16, 2022
DOI: 10.35808/ijeba/784

Abstract:

Purpose: This research aims to find out the influence of ownership and funding decisions on financial performance moderated by good corporate governance in mining companies listed on the IDX in from 2016 to 2020. Design/methodology/approach: The study used secondary data, namely financial statements. The selection of 38 sample companies in the study used purposive sampling techniques. The study adopted the Strucutral Equation Modeling-Partial Least Square (SEM-PLS) analysis method. The analysis techniques used are operated through the SmartPLS version 3.0. Findings: The results showed that ownership structures had no influence on financial performance. However, funding decisions have an influence on financial performance and good corporate governance has an influence on financial performance. Furthermore, there is no influence of ownership structure on financial performance moderated by good corporate governance, and funding decisions on financial performance are moderated by good corporate governance. Practical inplemantation: The implementation of good corporate governance mechanisms has not helped companies in considering funding decisions using debt as their external funding source. Originality value: The research refers to the minining sector as one of the supports for a country’s economic development and its role as a provider of energy resources.


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