The Effect of Corporate Governance on Firm Performance: Empirical Evidence from Indonesia

Malelak, Mariana Ing; Basana, Sautma Ronni

doi:10.35609/gjbssr.2015.3.1(5)

Cited by 3 publications

(1 citation statement)

References 371 publications

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“…Indonesia menganut model dua dewan (two-tier board) tata kelola perusahaan (Malelak & Basana, 2015;Sumarsono, 2014). Berdasarkan sistem dua dewan, dewan perusahaan dibedakan menjadi dewan direksi dan dewan komisaris.…”

Section: Pendahuluanunclassified

Keterlibatan Keluarga Dalam Dewan Direksi Dan Kinerja Akuntansi Perusahaan Keluarga Indonesia

Bensaadi

2023

JSPM

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Family position on the board of directors strengthens family influence in corporate decision making This study examines the effect of family involvement on the board of directors on accounting performance in family firms in Indonesia in family firms which only place family members on the board of directors and family firms which place family members on the board of directors and commissioner. The number of companies studied were 122 family companies and the research period was from 2009-2018. Data were analyzed using the Generelized Method of Moments (GMM) estimation method. The results of the research conducted show that family involvement in the board of directors has a positive effect on the company's accounting performance in both groups of family companies. The effect of family involvement on the board of directors is greater in family companies that place family members on the board of directors and commissioners compared to family companies that place family members who only place family members on the board of directors. The findings of this study are important for the competent authorities in formulating family business governance policies.Posisi keluarga dalam dewan direksi memperkuat pengaruh keluarga dalam pengambilan keputusan perusahaan Penelitian ini menguji pengaruh keterlibatan keluarga dalam dewan direksi terhadap kinerja akuntansi pada perusahaan keluarga di Indonesia pada perusahaan keluarga yang hanya menempatkan anggota keluarga dalam dewan direksi dan perusahaan keluarga yang menempatkan anggota keluarga dalam dewan direksi dan komisaris. Jumlah perusahaan yang diteliti adalah 122 perusahaan keluarga dengan jumlah data selama 10 tahun. Data dianalisis dengan menggunakan metode estimasi Generelized Method of Moments (GMM). Hasil penelitian yang dilakukan menunjukkan bahwa keterlibtan keluarga dalam dewan direksi berpengaruh positif signifikan terhadap kinerja akuntansi perusahaan pada kedua kelompok perusahaan keluarga. Pengaruh keterlibtan keluarga dalam dewan direksi lebih besar pada perusahaan keluarga yang menempatkan anggota keluarga dalam dewan direksi dan komisaris dibandingkan dengan perusahaan keluarga yang menempatkan anggota keluarga yang hanya menempatkan anggota keluarga pada dewan direksi. Temuan penelitian ini penting bagi otoritas berwenang dalam merumuskan kebijakan tata kelola perusahaan keluarga dan investor untuk pengambilan keputusan investasi.

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Section: Pendahuluanunclassified

Keterlibatan Keluarga Dalam Dewan Direksi Dan Kinerja Akuntansi Perusahaan Keluarga Indonesia

Bensaadi

2023

JSPM

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Corporate governance award and performance of Indonesian LQ45 firms

Limijaya

Hutagaol‐Martowidjojo

Annisa

2021

IOP Conf. Ser.: Earth Environ. Sci.

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This research aims to examine the impact of CGPI award on firm’s operational performance. Contrary to our expectation, using a sample of 45 companies listed in LQ45 index during 3-year observation period, it is found that corporate governance award has a significant negative relationship with companies’ performance. We use CGPI awardee/non-awardee to represent corporate governance award and ROA as a proxy of firm performance. Control variables included in this research consist of independent commissioners’ independency, board of director size and firm size. The unexpected negative relationship might indicate that the additional costs that must be borne by companies to implement good corporate governance practices, eventually become disadvantageous to their operational performance. The similar conclusion is found for the longer-term performance. Furthermore, we also find that the average ROA of CGPI awardees is much lower than the non-awardees, arguably due to the costly efforts put forward by the awardees to carry out and report on their corporate governance practices. The result of this research confirms the stewardship theory, in which the awardees put management as a steward and govern the firms to grow in size, however it comes with a certain cost that reduces their profitability.

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Impact of Agency Costs on Firm Performance: Evidence from Vietnam

Hoang

Tuan

Nha

et al. 2019

OMEE

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An assumption in agency costs theory is that agency costs can exert a negative impact on firm performance. In this study, we examine the impact of agency costs on firm performance of Vietnamese listed companies. Our sample includes 736 companies in Vietnam during the period from 2010 to 2015. We find that agency costs exert a negative impact on firm performance. Our results are robust to alternative econometric models, including an instrumental variables technique and a system generalized method of moment model. In addition, we show that a debt instrument can be a useful tool to reduce the negative impact of agency costs on firm performance.

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The Effect of Corporate Governance on Firm Performance: Empirical Evidence from Indonesia

Cited by 3 publications

References 371 publications

Keterlibatan Keluarga Dalam Dewan Direksi Dan Kinerja Akuntansi Perusahaan Keluarga Indonesia

Keterlibatan Keluarga Dalam Dewan Direksi Dan Kinerja Akuntansi Perusahaan Keluarga Indonesia

Corporate governance award and performance of Indonesian LQ45 firms

Impact of Agency Costs on Firm Performance: Evidence from Vietnam

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