THE IMPACT OF CORPORATE GOVERNANCE, PRODUCTION EFFECTIVENESS, AND ENVIRONMENT SUSTAINABILITY ON FIRM VALUE

Abstract

A curiosity to find out the essence variables to firm value in the global struggle business conditions as the effect of Covid-19.  This study aims to prove if corporate governance (CG) as the foundation and ideology to set up the business of production will affect firm value mediated by production effectiveness and moderated by the compliance of environmental sustainability.  The sample of research is the primary consumer goods sector on the IDX in 2018-2020, specifically for companies on production excluding retail or distributors. The study used purposive sampling with 93 data and used PROCESS macro v4.1 in processing the data. Empirical research results reveal that CG increases firm value. However, CG has no effect on production effectiveness. While the effectiveness of production has a positive effect on firm value but does not mediate the relationship between CG and firm value. The test results on environmental sustainability are able to moderate the influence of CG on firm value.