Author(s):
1. Deannes Isynuwardhana:
School of Economic and Business, Telkom University, Indonesia
2. Muhamad Muslih:
School of Economic and Business, Telkom University, Indonesia
Abstract:
The purpose of the company to prosper the shareholders is often constrained by conflicts of interests between owners and managers of the company. The prosperity of shareholders, which reflected in stock prices can be influenced also by the ability of stocks to be converted into cash in a short time without affecting the price (stock liquidity). Stocks that have a high level of liquidity are often indicated by information disclosure so that stock prices can adjust quickly to the actual state of the company. Conflicts of interest between owners and managers of the company can cause the level of stock liquidity to be low due to a lack of information disclosure about the company. To overcome this, the implementation of Corporate Governance will encourage companies to be more transparent in providing information. This study examines the influence of Good Corporate Governance on the level of stock liquidity by using sample companies listed in the Corporate Governance Perception Index (CGPI) in 2011-2015. The results obtained indicate that there is a significant influence of Good Corporate Governance on stock liquidity. This conclusion shows that the implementation of good corporate governance will encourage companies to provide information transparently that will increase the liquidity of the stock.
Page(s):
393-396
DOI:
DOI not available
Published:
Journal: Science International, Volume: 32, Issue: 4, Year: 2020
Keywords:
Stocks Liquidity
,
corporate governance
,
BidAsk Spread
,
Corporate Governance Perception Index
References:
References are not available for this document.
Citations
Citations are not available for this document.