The Effect of Good Corporate Governance and Intellectual Capital Mechanism On Financial Performance with Profit Management as A Mediation Variable
This study aimed to determine the influence of good corporate governance and intellectual capital mechanisms on financial performance with profit management as a mediating variable for the industrial sector listed on the Indonesian stock exchange in 2018 – 2021. The sample was selected using a purposive sampling technique so that 34 companies (188 company years) met the criteria selected as sample. Data analysis techniques were performed using multiple regression and hypothesis testing using eviews 9 and the sobel test. Based on the results of multiple regression analysis with a significance level of 5%, this study shows that only the independent board of commissioners and audit quality variables have a significant effect on financial performance. Other variables have no effect on financial performance. In this study, earnings management is not able to significantly mediate the influence between GCG and intellectual capital.
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