Purpose - This study aims to determine the effect of the board structure on company performance. This study has 6 independent variables, which consist of the size of the board of directors, independent directors, board of directors meetings, board of directors education, female directors, and managerial ownership. Research Method - The sample used in this research is quantitative data with a purposive sampling technique. Based on the criteria, the samples collected from 473 companies in the period 2014-2018. The sample data is tested using panel data regression. Findings - This study concludes that all the independent variables have no significant effect on company performance. Board of directors still needs to be controlled to achieve good performance. Independent directors rarely interfere on other director decision. Board of director’s meetings only incurs unnecessary expenses. Board of director's education is just a qualification. Women's board of directors in each country could have difference effect because of cultural differences. There are still many directors in public companies that do not have ownership in the company, so there is still no visible effect on managerial ownership. Implication - The findings of this study imply that corporate governance still needs to be strengthened to improve company performance. There are still many problems within the company due to poor governance.
Purpose – This study aims to examine the effect of the corporate governance on the firm financial distress. The independent variables consisted of ownership structure (managerial, foreign, institutional, family, and block holder’s), board characteristics (size, independent, educational background, meeting, and gender) and corporate governance index. Research Method – This study uses 168 sample companies selected by purposive sampling method. The hypotheses testing uses panel regression method. Findings – The result shows 116 of 168 sample companies (IDX) experienced financial distress. It has been proven that financial distress can be significantly reduced by increasing concentrated ownership and board education. In addition, foreign ownership and board size have a significant and positive impact on financial distress. However, managerial ownership, family ownership, institutional ownership, board independence, board meetings, board gender, and corporate governance index do not have an impact on financial distress. Implication – The findings of this study imply that financial distress occurs by the presence of foreign ownership because of rarely involved in company management. In addition, to avoid the risk of financial distress the company can be anticipated by improving the quality board of directors (education, expertise, CEO tenure) and strengthening the internal control.
The study was conducted to determine the effect of corporate governance components on financial performance mediated by risk management. In 2016-2020, non-financial sector companies on the IDX became the object of research. This research is quantitative by taking the data through financial reports. The technique applied to the research data testing is multiple linear analysis and path analysis. The results show that corporate governance practices such as auditor reputation, size of the board of commissioners, audit committee, board meetings, and financial reporting risk have a significant effect on financial performance where risk management acts as a mediation. Risk management is proven to have an effective influence in the company so that the management of corporate governance is better, and financial performance can be managed optimally. Risk management also helps to supervise and minimize any possible activities that will have an impact on causing risks, both internal and external risks.
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