Abstract: Ii Agency conflict can cause a decline in the company's financial performance. Agency theory states that the application of corporate governance can minimize agency conflicts and can improve corporate financial performance. This study aims to obtain empirical evidence of the influence of corporate governance on financial performance with company size as a moderating variable. This research was conducted on companies listed in the Kompas 100 index in 2017-2018. The sample research method used was purposive sampling. The number of companies that met the criteria was 74 companies with 148 observations. Data analysis techniques used are confirmatory factor analysis and Moderated Regression Analysis. Based on the results of the study note that corporate governance and company size have a positive effect on the company's financial performance. The study also found that company size strengthened the influence of corporate governance on the company's financial performance. The results of this study support the agency theory which states that the application of corporate governance can improve corporate spatial performance.
Keywords: Corporate governance, agency theory, company size and financial performance.
Title: The Effect of Corporate Governance on Financial Performance with the Company Size as a Moderating
Author: Putu Nindya Parista Yanti, Ayu Aryista Dewi, Ni Ketut Rasmini, Ni Luh Supadmi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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