Leverage and GCG Effects on Financial Performance Moderated by Firm Size
DOI:
https://doi.org/10.54518/rh.5.4.2025.737Keywords:
Financial Performance, Firm Size, Good Corporate Governance, Hospitality Industry, LeverageAbstract
This research aims to empirically analyze the influence of leverage and Good Corporate Governance (GCG) on financial performance, with firm size functioning as a moderating variable, specifically within the hospitality industry in a Regency. The hospitality sector is a crucial part of the service industry that needs to be developed to foster new opportunities and enhance performance through competitive advantages. Employing a mixed methods approach, the study utilized purposive sampling to select a total of 117 industry units. Data analysis was conducted using the Moderated Regression Analysis (MRA) method. The results reveal that firm size does not moderate the effect of leverage on financial performance. Nonetheless, the GCG components namely the size of the board of directors, board of commissioners, and institutional ownership demonstrate a significant impact on financial performance when firm size is used as a moderating factor. Based on these findings, it can be concluded that effective implementation of GCG elements, supported by firm size, can strengthen financial performance in the hospitality industry. However, firm size alone is insufficient to influence the relationship between leverage and performance in this sector.
Downloads
References
Ambarwati, P., Hendra, K., & Nurlaela, S. (2022). The effect of good corporate governance, leverage and company size on the financial performance of real estate companies. Krisnadwipayana Journal of Accounting and Business, 9(3), 980–997.
Amelia, A., Usman, B., & Mursalin, M. (2023). Pengaruh profitabilitas terhadap pertumbuhan laba pada perusahaan sub sektor trade retail yang terdaftar di Bursa Efek Indonesia (BEI). Jurnal Manajemen dan Investasi (Manivestasi), 5(2), 134–148.
Andika, M., & Wijayanti, R. (2017). The effect of leverage, capital structure and institutional ownership on corporate financial performance (study on cigarette companies listed on the IDX for the period 2001–2015). Brawijaya Journal of Economics and Business, 6(11), 22–31.
Andiny, D. W., & Hartono, U. (2022). Pengaruh struktur modal, corporate governance, dan ukuran perusahaan terhadap kinerja perusahaan sektor aneka industri di BEI periode 2015–2019. Jurnal Ilmu Manajemen, 10(1), 244–254.
Antikasari, L. D., Fajri, R. N., & Dewi, R. R. (2020). Determinants of financial performance in terms of good corporate governance, leverage and company size (sub sector of BUMN companies listed on the IDX in 2013–2018). Owner (Accounting Research and Journal), 4(2), 336–346.
Arumningsih, F. (2018). Analisis pengaruh leverage terhadap kinerja keuangan perusahaan dengan ukuran perusahaan sebagai variabel moderating (studi empiris pada perbankan yang terdaftar di BEI periode 2013–2017) (Doctoral dissertation, Magelang: Universitas Muhammadiyah Magelang).
Gemilang, M. R., & Wiyono, S. (2022). Good corporate governance, struktur modal, leverage, dan ukuran perusahaan terhadap kinerja keuangan. Jurnal Ekonomi Trisakti, 2(2), 529–542.
Ghozali, I. (2018). Application of multivariate analysis with the IBS SPSS 25 program (9th ed.). Semarang: Diponegoro University Publishing Agency.
Himawan, F. A., & Fazriah, R. (2021). The effect of intellectual capital, managerial ownership, institutional ownership, independent commissioner and audit committee on financial performance with company size as a moderating variable (in financial services companies listed on the IDX). ESENSI: Journal of Business Management, 24(1), 1–21.
Ibhagui, O. W., & Olokoyo, F. O. (2018). Leverage and firm performance: New evidence on the role of firm size. North American Journal of Economics and Finance, 3(2), 57–82.
Jensen, C., & Meckling, H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economic, 3(4), 305–360.
Khasanah, I. D., & Sucipto, A. (2020). Pengaruh corporate social responsibility (CSR) dan good corporate governance (GCG) terhadap nilai perusahaan dengan profitabilitas sebagai variabel intervening. AKUNTABEL: Jurnal Akuntansi dan Keuangan, 17(1), 14–28.
Kirana, M. N., & Wahyudi, S. (2016). Analysis of the effect of corporate governance and leverage on the financial performance of control companies (case study on wholesale and retail trade companies listed on the IDX in 2010–2014). Diponegoro Journal of Management, 5(4), 1–12.
Kusdiyanto, K., & Kusumaningrum, D. D. (2016). Pengaruh good corporate governance dan leverage terhadap kinerja keuangan (studi pada perusahaan manufaktur yang terdaftar di BEI tahun 2013–2014). Benefit: Jurnal Manajemen dan Bisnis, 19(2), 161–167.
Lukviarman, N. (2016). Fundamentals of financial management. Padang: Universitas Andalas.
Mandal, P., & Al-ahdhal, W. (2018). Impact of corporate governance on financial performance of Indian electronic consumer goods firms. International Journal of Research, 5(19), 56–74.
Meiyana, A., & Aisyah, M. N. (2019). The effect of environmental performance, environmental costs, and company size on financial performance with corporate social responsibility as an intervening variable. Nominal: Barometer of Accounting and Management Research, 8(1), 1–18.
Ningsih, D. A., & Wuryani, E. (2021). Institutional ownership, leverage and company size on financial performance. AKUNESA: Unesa Accounting Journal, 9(2), 18–23.
Nurhana, I. A., Ma'ruf, M. H., & Subarkah, J. (2021). Pengaruh good corporate governance terhadap kinerja perusahaan yang terdaftar di BEI pada sektor keuangan (tahun 2018–2019). Jurnal Akuntansi dan Pajak, 22(1), 355–365.
Prabandari, A. R., Fatimah, N., Rochayatun, S., & Sartika, F. (2023). Determining corporate social responsibility disclosure with firm size as variable moderation. Asian Journal of Economics, Business and Accounting, 23(19), 168–178.
Purwanti, D. (2021). Determination of company financial performance: Analysis of liquidity, leverage and company size (literature review of financial management). Journal of Applied Management Science, 2(5), 692–698.
Putri, R. K., & Mulyati, H. (2024). Analisis pengaruh good corporate governance, ukuran perusahaan, dan leverage perusahaan terhadap kinerja keuangan (studi pada perusahaan sub sektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2018–2022). Jurnal Ilmiah Wahana Pendidikan, 10(9), 591–601.
Shanti, Y. K. (2020). The effect of the audit committee on corporate financial performance with the board of commissioners as an intervening variable. Scientific Journal of Economics, 9(2), 147–158.
Sugiyono. (2016). Metode penelitian kuantitatif, kualitatif dan R dan D. Bandung: Alfabeta.
Sularto, A. K., & Gantino, R. (2023). Pengaruh good corporate governance terhadap kinerja keuangan perusahaan sub sektor makanan dan minuman dan sub sektor batubara. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 8(1), 92–104.
Verawati, D., Yudhanto, W., Giovanni, A., Ikhwan, K., & Hartono, B. (2023). Strategic leadership model in the hospitality industry: SWOT analysis. Scientific Journal of Unity Management, 11(2), 477–486.
Wahyuni, F., & Erawati, T. (2019). Pengaruh corporate governance, ukuran perusahaan, dan leverage terhadap kinerja keuangan perusahaan di Bursa Efek Indonesia (studi kasus perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2013–2017). Jurnal Akuntansi Pajak Dewantara, 1(2), 113–128.
Wati, M. M. C., Budiadnyani, N. P., Kusuma, P. S. A. J., & Kustina, K. T. (2024). Pengaruh pengungkapan sustainability report dan praktik good corporate governance terhadap nilai perusahaan. Jurnal Akademi Akuntansi Indonesia Padang, 4(2), 306–320.
Widyari, K. P., Luh ni Gde, N., & Luh Putu Ni, W. (2022). The effect of good corporate governance, company size, leverage, audit quality on company performance. Journal of Accounting Student Research Results Collection (Kharisma), 4(2), 202–213.
Wulandari, E., & Tan, E. (2023). The effect of good corporate governance, company size, BOPO, leverage on the financial performance of chemical companies on the IDX (2017–2021). Scientific Journal of Management and Business (Jimbi), 4(1), 10–20.
Yusuf, Y., Anthoni, L., & Suherman, A. (2022). Pengaruh intellectual capital, good corporate governance dan audit internal terhadap kinerja keuangan perusahaan dengan ukuran perusahaan dan leverage sebagai variabel mediasi. Eqien-Jurnal Ekonomi dan Bisnis, 11(3), 973–982.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Wildan Yudhanto, Satrio Tegar Sadewo, Axel Giovanni, Emmaculata Sac Cid Ananda, Yacobo P. Sijabat
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
