The impact of board structure and ownership structure on firm performance: an evidence from blue chip firms listed in Indonesian stock exchange

Basyith, Abdul; Fauzi, Fitriya; Idris, Muhammad

doi:10.22495/cocv12i4c3p2

Cited by 16 publications

(17 citation statements)

References 47 publications

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“…Similar to audit committee issues mentioned, nomination committee is not without kinship issue and agency problem which is apparent. Moreover, Basyith, Fauzi and Idris (2015) found a nonsignificant effect of audit committee on firm performance in particular for bluechips firms-listed in the Indonesian Stock Exchange. Similarly, nomination committee appears to be somewhat more nepotistic than is desired and agency problem appears common.…”

Section: Literature Reviewmentioning

confidence: 91%

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Fauzi

Basyith

Foo

2017

Cogent Economics & Finance

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Abstract:The committee on board includes audit committee and nomination committee that currently has been questioned as to whether the firm value is also affected by the committees' performance that has been the subject of attention. Apparently, this study is the first to attempt providing an evidence of committees' role on to the extent of its contribution to firm value in the context of Indonesian Sharia-listed firms as the establishment of Islamic-compliance firms is currently experiencing an upward trend in many countries. Hence it is enticing to examine the impact of committee on board as part of corporate governance mechanisms on firm value in the Indonesian Sharia-listed firms. Using an Indonesian Sharia-listed firms which counts for 30 firms in the quarterly period of 2009 to 2015, this study employs a 720 balanced panel, using Generalized Least Square. The results reveal that the audit committee and the nomination committee have a significant impact on firm value (Tobin's Q). The non-significant result for ROA suggesting that the mixed measured of book and market is viewed more reliable for investors as it indicates the overall performance measure. Meanwhile the result of the number of audit committee meeting yielded no significant impact on firm value; this may be due to no restrictions on the number of positions of audit committee serves in firms, therefore,

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Section: Literature Reviewmentioning

confidence: 91%

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Fauzi

Basyith

Foo

2017

Cogent Economics & Finance

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“…From the corporate governance viewpoint, Brick and Chidambaran (2010) disclose that board activity has a positive impact on firm value. Basyith et al (2015) argue that managerial ownership, blockholders' ownership and board of directors significantly relate to firm performance which could be a proxy for firm value. Larcker et al (2013) reveal that firms with central boards of directors generate superior risk-adjusted stock return and higher future return-on-asset growth.…”

Section: Firm Valuementioning

confidence: 99%

“…In exploring the variables related to ownership and the board, Basyith et al (2015) illustrate that variables, such as board of directors, managerial ownership and blockholders, have significant impact on firm performance. Besides, Guest (2009) reveals that board size has a strong negative effect on Tobin's Q for UK listed firms because of weak monitoring.…”

Section: Datamentioning

confidence: 99%

Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan

Cheng

Huang

2020

JIC

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PurposeThe purpose of this study is to find evidence of the impact of intellectual capital on firm value, and, in turn, enhance the existing literature which lacks consensus on it. By employing some distinctive proxies for human capital, innovation capital, customer capital and process capital, this study might provide valuable information for firms to make strategic decisions.Design/methodology/approachThis study uses Tobin's Q to represent firm value and various variables to be the proxies for intellectual capitals. By utilizing firm-year observations, this study applies panel data models first, and then Petersen regression models for further investigation to enhance the robustness of the empirical results.FindingsFirm value is affected positively by the average net profit per employee as well as goodwill and intangible assets. This is because firms having employees with abundant knowledge will possess advantage for innovation, and the excellent reputation, a part of goodwill for oriental firms, would encourage people to consume and invest more.Research limitations/implicationsThe constraint of data resource is the main limitation. With the limited scales and as an emerging market of Taiwan Stock Exchange, it is not confirmed whether the results are appropriate for the developed markets. Nevertheless, firms should make efforts on developing intellectual capital and corporate governance for operating businesses with competitiveness and safety.Originality/valueSince capable employees enhance the innovation, innovation improves customer's satisfaction and good customer relationship increases the sales; this study illustrates that for expanding businesses, firms should make more efforts on developing intellectual capital.

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“…This study is consistent with previous research that revealed good corporate governance (GCG) will result in lower corporate values through negative relationships. Research conducted by Basal and Sharma (2016); Rashid et al, (2010); Basyith et al, (2015) have found independent commissioners, as well as audit committees having negative relations with company value. The reason is that independent parties are inversely proportional to company value because the benefits of monitoring large parties are comparable to issues related to asymmetric information enhancement and will likely have higher coordination costs, which reduces effective monitoring.…”

Section: Resultsmentioning

confidence: 99%

The Influence of Corporate Social Responsibility and Corporate Governance to Firm Value by Tax Avoidance as Intervening Variable

Fadhilah¹,

Sukoharsono²,

Nuzula³

2018

RJOAS

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This study examines the assessment of Indonesian companies on Corporate Social Responsibility and Corporate Governance on all samples of State-ownership Enterprise listed on the Indonesia Stock Exchange. Analyze further whether these firms have changed tax avoidance activities since 2011-2015 when the Indonesian government enacted stricter auditing of tax regulation along with policy of company being responsibility to stakeholder in around companies. Our findings show that both corporate social responsibility and corporate governance are negatively significant associated with tax avoidance. These results indicate that policy of corporate responsibility can be influence policy of financial reporting through tax behavior. As we know many company will be considering lower tax costs to increase shareholder value through dividing profit after tax. Alongside company, government is also response through combining policy of tax and corporate responsibility in from a tax benefits, then companies and governments build and cooperate in creating a prosper public. Considering good corporate governance practice in every decision making will be facilitate company in planning tax policy by using tax benefits without harm government. We also report that corporate social responsibility can be increasing significantly firm value, because legitimate theories explain that by participating from the company to stakeholders, this will be increasing shareholder value. Another results is how corporate governance negatively affects significantly with firm value. This is signs that corporate governance in state-owned enterprise cannot be work well, because there is a lot of political interest regarding for taking policy in manage state-owned enterprise. Furthermore, our results suggest that firm arrange tax policy will get tax benefits through higher profit after tax, and then investor will be encouraged where the value of company will be increasing in the market. KEY WORDSCorporate social responsibility, corporate governance, firm value, tax avoidance, stateownership enterprise.In an uncertainty market, the higher competition of each company in gaining market will change the company to be more responsive to opportunities by utilizing the environment around the company. Therefore, companies are required to adopt a Corporate Responsibility model that is not only related to economic aspects, but also needs to pay attention to environmental, social and legal aspects as a way to maintain the company's sustainability. However, in current business practices, the Corporate Responsibility model is adopted by companies such as "double-edged sword". On the one hand, it impacts company value because it can be used as a signal for investors to invest, but on the other hand, unwittingly, will increase tax saving activities, either intentionally (Tax avoidance) or unintentional (Tax Evasion).The implementation of Corporate Responsibility which is increasing the value of the company also needs to be considered related to the company's tax policy, as this ...

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The impact of board structure and ownership structure on firm performance: an evidence from blue chip firms listed in Indonesian stock exchange

Cited by 16 publications

References 47 publications

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan

The Influence of Corporate Social Responsibility and Corporate Governance to Firm Value by Tax Avoidance as Intervening Variable

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