ANALISIS PENGARUH CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL MEDIASI (Studi Empiris pada Perusahaan Non-Keuangan yang Terdaftar di Bursa Efek Indonesia Periode 2011-2017)

Abstract

ABSTRACT This research was conducted with the aim of analyzing whether the capital structure variable acts as a mediation between the relationship between corporate governance and company profitability. Corporate governance in this study is proxied by board size, independent board, audit committee, reputation audit, and ownership concentration. The purpose of the research is to see whether the structure, mechanism, or principle that plays a role in corporate governance to increase company profits. This study uses quantitative methods with descriptive data analysis. The population in this study are all non-financial companies listed on the Indonesia Stock Exchange (IDX) for the period 2011-2017. The research sample was determined based on the purposive sampling method by non-random sampling. The total population of the study was 469 companies, and samples that were in accordance with the study were 18 companies each year. The research data used is secondary data accessed through Bloomberg in the form of data on ROA, company capital structure, board size, board independent, and audit committee, and company financial reports (annual reports) in the form of audit reputation and ownership concentration. The data analysis technique used in this study is using Eviews 10. This study has 16 hypotheses using two equations, the first equation is the relationship between capital structure and company profitability, it is concluded that there is no relationship between board size and ownership concentration on the company's capital structure, but the reverse results are indicated by an independent board, audit committee, and reputation audit. The second equation is the relationship between corporate governance and capital structure to profitability, concluded that there is a relationship between board independent, audit reputation, ownership concentration, and capital structure to the profitability of the company, but the opposite results are indicated by the board size and audit committee that have no relation to profitability company. The mediation test results (using sobel test) conclude that the capital structure acts as an intermediary variable betweenrelations board independent and audit committee on profitability, but the capital structure has no role between board size, audit committee, and ownership concentration on profitability. Keywords: board size, independent board, audit committee, reputation audit, ownership concentration, profitability, and capital structure