www.iaset.us editor@iaset.us EFFECT OF BOARD DIVERSITY, AUDIT COMMITTEE, MANAGERIAL OWNERSHIP, OWNERSHIP OF INSTITUTIONAL, PROFITABILITY AND LEVERAGE ON VALUE OF THE FIRM ALI KHALIFA ALI STELA 1 & ABDALSLAM MOHAMED ABED RHUMAH 2 1 Al Rajban Accounting College Aljabal Algharbi University, Libya 2 Dean of the Economic Faculty of Al Zaytona University, Libya ABSTRACT This study aims to identify and provide empirical evidence regarding: The effect of the proportion of women directors on value of the firm. The effect of the proportion of independent directors on value of the firm. The influence of external audit committee on value of the firm. The effect of managerial ownership on value of the firm. The effect of institutional ownership on value of the firm. The effect of the ratio of profitability on value of the firm. The effect of leverage ratio on value of the firm. Obtained a sample of 43 companies in the period of 2012-2014. The analysis tool use in this study has classic assumption test and multiple regression test. The results of this study indicate that: The proportion of external audit committee, institutional ownership, profitability and leverage ratios affect value of the firm. The proportion of women directors, the proportion of independent directors, and managerial ownership does not affect value of the firm. KEYWORDS: Proportion, Institutional Ownership, Leverage, Directors, Managerial Ownership INTRODUCTION The capital market is a means to trade in securities for investment for investors. An investor would be more interested in the prospect of a good company. A major company aims to increase the company's value or the value of the firm, through increasing affluence of owners or shareholders. Of course, there are various factors that affect the value of this company, mainly involved in corporate governance perspective. The study of corporate governance is increasing rapidly along with the opening of large-scale financial scandals (e.g., Enron scandal, Tyco, Worldcom and Global Crossing) involving accountants, one of the important elements of good corporate governance. Good corporate governance guidelines prepared by the National Committee on Corporate Governance (KNKCG) in 2002 with the aim that these guidelines become a reference for the implementation of good corporate governance by businesses in Indonesia. If the practices of good corporate governance in accordance with KNKCG, then it can help managers in their depiction of the level of compliance to good corporate governance (Kusumawati and Riyanto, 2005). Research conducted by Kusumastuti et al (2007) states that board diversity is measured by the presence of women affects the value of the company. This study used a sample of companies in manufacturing companies listed on the JSE in 2005. This study used a sample of 48 manufacturing companies. Research conducted by Yuniasih and Wirakusuma (2008) states that the audit committee of external influence on International Journal of Financial Management (IJFM) ISSN(P): 2319-491X; ISSN(E): 2319-4928; Vol. 6, Issue 1, Dec - Jan -2017, 1-10 © IASET