Board diversity and firm performance: The Indonesian evidence

Darmadi, Salim

doi:10.22495/cocv8i2c4p4

Cited by 219 publications

(287 citation statements)

References 78 publications

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Section: International Journal Of Accounting and Financial Reportingcontrasting

confidence: 70%

“…Women are argued to have necessary traits that are needed for good governance, since women are naturally more scrupulous, decent at decision-making, sophisticated in accounting and finance and risk adverse (Azmi & Barrett, 2013). Contrasting results were found in studies, as the presence of female members has both positive and negative impact on firm profitability (Campbell & Mí nguez-Vera, 2008;Darmadi, 2011;Torchia, Calabrò, & Huse, 2011).The role of the non-executive director (NED) is often described as that of a long-term, consensus-based decision maker and as a custodian of the governance process (Higgs, 2003). Non-executive directors, essentially play an advisory role in the board meetings (Rashid & Lodh, 2011;Uadiale, 2010).…”

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confidence: 99%

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Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Ullah

Ahmed

Jamshed

2017

ijafr

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Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.Keywords: corporate governance, multinational company (MNC), financial performance, Bangladesh Background of the StudyCorporate governance describes the structure of rights and responsibilities among the parties that have a stake in a firm (Aguilera & Jackson, 2003). A corporate governance system can be a set of processes and structures used to direct a corporation's business. A key objective of a corporate governance system should be the enhancement of shareholder wealth. Once implemented, an effective corporate governance system can help to ensure an appropriate division of power among shareholders, the board of directors, and management (Mcconomy & Bujaki, 2000). Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns (Ammann, Oesch, & Schmid, 2011;Bebchuk, Cohen, & Ferrell, 2009;Brown & Caylor, 2006;Cremers & Ferrell, 2009;Gompers, Ishii, & Metrick, 2001;Johnson, Moorman, & Sorescu, 2009;Renders, Gaeremynck, & Sercu, 2010).Bangladesh is one of the emerging markets and most of the top companies are either family owned or controlled by corporate group or government. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations. 66.7 percent of the companies have adop...

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Section: International Journal Of Accounting and Financial Reportingcontrasting

confidence: 70%

mentioning

confidence: 99%

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Ullah

Ahmed

Jamshed

2017

ijafr

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“…Selain menggunakan frekuensi rapat, peneliti juga menggunakan gender sebagai variabel independen, yaitu jumlah direktur perempuan dalam dewan direktur. Penelitian mengenai hubungan jumlah direktur perempuan dan kinerja perusahaan di Indonesia dilakukan oleh Darmadi, 2011;Darmadi, 2013;Nathania, 2014). Darmadi (2011Darmadi ( , 2013 dan Nathania (2014) menemukan hubungan negatif antara jumlah direktur perempuan dan kinerja perusahaan.…”

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“…Penelitian mengenai hubungan jumlah direktur perempuan dan kinerja perusahaan di Indonesia dilakukan oleh Darmadi, 2011;Darmadi, 2013;Nathania, 2014). Darmadi (2011Darmadi ( , 2013 dan Nathania (2014) menemukan hubungan negatif antara jumlah direktur perempuan dan kinerja perusahaan. Van der Walt et al, (2006) dan Khan dan Vieito (2013) menemukan bahwa proporsi direktur wanita berpengaruh positif terhadap kinerja perusahaan.…”

unclassified

“…Semuanya menggunakan frekuensi rapat dewan komisaris (lihat Prastiti dan Meiranto, 2013;Risty dan Sany, 2015). Juga, penelitian tata kelola perusahaan yang menggunakan variabel gender/jumlah direktur perempuan masih relatif sedikit di Indonesia (lihat Darmadi, 2011Darmadi, dan 2013Nathania, 2014), dan (2) Penelitian ini memperluas temuan-temuan terdahulu, apakah akan mendukung atau bertentangan dengan hasil penelitian sebelumnya terutama di pasar modal maju seperti Amerika Serikat.…”

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Pengaruh Frekuensi Rapat Dewan Direktur Dan Jumlah Direktur Perempuan Terhadap Kinerja Perbankan

Mardiyati¹

2017

EKUITAS

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PENDAHULUANTujuan perusahaan adalah memaksimumkan kekayaan pemilik yang tercermin pada harga saham yang semakin tinggi. Perubahan harga saham dipengaruhi antara lain oleh kinerja akuntansi perusahaan. Baik kinerja pasar maupun kinerja akuntansi juga dapat dipengaruhi oleh banyak faktor lainnya, antara lain oleh tata kelola perusahaan. Penelitian yang menghubungkan antara corporate governance dan kinerja perusahaan antara lain dilakukan oleh

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Corporate social responsibility oriented boards and triple bottom line performance: A meta‐analytic study

Zubeltzu‐Jaka,

Álvarez‐Etxeberria,

Aldaz‐Odriozola

2023

Bus Strat Dev

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In this article, we aim to investigate the effect of corporate social responsibility (CSR)‐oriented boards on triple bottom‐line (TBL) performance and whether internal corporate governance exhibits a facilitating role in achieving the sustainable development goals by enhancing the performance indicators of the TBL. Specifically, this article aims to shed light on this issue by meta‐analyzing the relationship between good governance and both social and financial performance, using a global sample to facilitate this analysis taking into account the incidence of the institutional characteristics of different countries and their impact on the relationship studied, by means of eight meta‐analyses. For this purpose, we conducted a meta‐analytic study on a sample of 289 articles published between 1997 and 2021. The results show that CSR‐oriented boards have a direct effect on corporate social performance (CSP) indicators and that their impact on financial outcomes is mediated by CSP strategies. Board size, gender diversity, and board independence present a facilitator profile of CSP, while only gender diversity enhances financial outcomes. The influence of CSR‐oriented boards is more acute in countries with greater protection for stakeholders and stronger environmental awareness.

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Board diversity and firm performance: The Indonesian evidence

Abstract: This paper examines the associations between diversity of board members and financial performance of the firms listed on the Indonesia Stock Exchange (IDX

Cited by 219 publications

References 78 publications

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Pengaruh Frekuensi Rapat Dewan Direktur Dan Jumlah Direktur Perempuan Terhadap Kinerja Perbankan

Corporate social responsibility oriented boards and triple bottom line performance: A meta‐analytic study

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