Good Corporate Governance is necessary existence in all sorts of the companies. Implementation of Good Corporate Governance will improve financial performance. The high financial performance giving effect on the firm value. The purpose of this study was to determine and explain the effect of good corporate governance on financial performance and its effect on firm value. Research conducted at the State-Owned Enterprises listed on the Indonesia Stock Exchange (BEI) in the period 2012-2014. This research is a explanatory research with quantitative approach. Sampling technique used is purposive sampling. The method used in analyzing the data by using the Partial Least Square (PLS). Based on the analysis result that Good Corporate Governance has an significant negative effect on financial performance, Good Corporate Governance has an significant positive effect on firm value, financial performance has an significant negative effect on firm value.