Eduard Ary Binsar Naibaho

Type of the article: Research Article

This study examines how accounting-based financial performance and corporate governance affect firm value among Indonesian listed technology firms. The study analyzes panel data from 28 technology companies listed on the Indonesia Stock Exchange during 2021–2024. The data were obtained from annual reports, audited financial statements, corporate governance disclosures, and capital market information. Panel regression analysis was applied, and the Fixed Effects Model was selected based on model specification tests. Corporate governance and accounting-based financial performance are measured using standardized equal-weighted composite indices constructed from their respective indicators. The corporate governance index was constructed from board independence, board size, audit committee size, and ownership concentration, while the financial performance index was constructed from ROA, ROE, TATO, current ratio, and reverse-coded DER. The results show that the corporate governance composite index has a positive and significant effect on firm value, with a coefficient of 0.263 and a t-statistic of 2.791. The accounting-based financial performance composite index also has a positive and significant effect on firm value, with a coefficient of 0.415 and a t-statistic of 4.526. Furthermore, the interaction between the corporate governance index and the financial performance index is positive and significant. These findings indicate that corporate governance strengthens the value relevance of financial performance. The model has strong explanatory power, with an adjusted R² of 0.672. The study concludes that profitability and leverage remain relevant accounting-based for firm valuation, while corporate governance enhances transparency, financial control, and investor confidence in Indonesian technology firms.