Abstract :
This study aims to examine the effect of Good Corporate Governance and Financial Leverage the value of the manufacturing company listed in Indonesia Stock Exchange (IDX) 2008-2011. The sample observations used were manufacturing companies listed on the Indonesia Stock Exchange during the period 2008 to 2011 observations. The data used was obtained from the Indonesian Capital Market Directory and idx.co.id. The number of samples used is 79 manufacturing companies listed on the Indonesia Stock Exchange. Technical analysis is linear regression, normality test, descriptive analysis and significance test. The results of this study indicate that good corporate governance with variable size and number of the board audit committee, and financial leverage simultaneous effect on firm value. Based on the t test only variable size of the board of commissioners who have a significant effect on firm. Investors are expected to consider the level of debt and the use of good corporate governance as the basis for any investment decision. For the next researcher is expected to extend the period of observation and adding variables to give better results.
Keywords: Good Corporate Governance, Financial Leverage, value of the firm, manufacturing companies listed in Indonesia Stock Exchange.