The Effect of Corporate Governance for Financial Performance in LQ45 Companies That Will Be Listed in The Indonesia Stock Exchange From 2017 - 2021
Keywords:
Corporate Governance, and Financial Performance.
Abstract
Company performance ratings are used as a measure of success in decision-making management, as success in achieving company goals is management's output. The purpose of this research is to ascertain how management with ownership, the board of commissioners, and independent commissioners affect LQ45 companies' financial performance on the IDX. The method for gathering the data is to use annual financial report data from LQ45 companies that are listed on the Indonesia Stock Exchange and can be accessed through the IDX website for the years 2017 to 2021. Nine companies meet the criteria for the research sample. The findings indicate that managerial ownership has a significant impact on ROA, while independent commissioners have no significant impact on ROA in LQ45 companies listed on the Indonesia Stock Exchange and the number of commissioners has a significant impact on ROA. However, ROA in LQ45 companies listed on the Indonesia Stock Exchange between 2017 and 2021 is unaffected by the combined number of commissioners and independent commissioners.
Downloads
Download data is not yet available.
References
Agus Harjito, D., Santoso, ARC, & McGowan, CB (2021). The effect of corporate governance and corporate strategy on family firm performance in Indonesia. Journal of Applied Business Research, 37(1), 11–16.https://doi.org/10.2991/aebmr.k.200127.082
Akbas, HE (2016). The Relationship between Board Characteristics and Environmental Disclosure: Evidence from Turkish Listed Companies. South East European Journal of Economics and Business, 11(2), 7–19. https://doi.org/10.1515/jeb-2016-0007
Ardana and Agus. (2014). Business and Professional Ethics. Salemba Empat, Jakarta.
Charles T. Horngren, et al. (2011). Financial management. Issue 8. Publisher. Erlangga. Jakarta.
Collier, P., & Gregory, A. (1999). Audit committee activity and agency costs. Journal of Accounting and Public Policy, 18(4–5), 311–332. https://doi.org/10.1016/S0278-4254(99)00015-0
Deegan, C. (2004). Financial Accounting Theory. McGraw-Hill Book Company. Sydney.
Gupta, P., & Sharma, AM (2014). A Study of the Impact of Corporate Governance Practices on Firm Performance in Indian and South Korean Companies. Procedia - Social and Behavioral Sciences, 133, 4–11. https://doi.org/10.1016/j.sbspro.2014.04.163
hamdani. (2016). Good Corporate Governance: Review of Ethics in Business Practices. Media Discourse Partners. Jakarta.
Heenetigala, K. (2011). Corporate Governance Practices and Firm Performance of Listed Companies in Sri Lanka. Thesis submitted in fulfillment of the requirements of the degree of Doctor of Business Administration Victoria Graduate School Faculty of Business and Law Victoria University Melbourne.
Helfert, E. (2018). Financial Analysis Techniques, Translation of the Eighth Edition. Jakarta: Erlangga.
Hidayat, AA, & Utama, S. (2017). Board characteristics and firm performance: evidence from Indonesia. International Research Journal of Business Studies, 8(3).
Jensen, MC & Meckling, WH (1976), “firm theory: managerial behavior, agency costs and
ownership structure”, Journal of Financial Economics, 3(4), 305.
Jumingan. (2016). Financial Statement Analysis. Script Earth. Jakarta.
Nawawi, A., Salin, ASAP, Ismail, Z., & Smith, M. (2018). The Influence of a Board's Ethical Commitment on Corporate Governance in Enhancing a Company's Corporate Performance. Journal of Financial Crime.
Priyatno, Duwi. 2008. Independent Learning SPSS (Statistical Product and Service Solution) for Data Analysis and Statistical Testing. Yogyakarta: Mediakom.
Purnama, HK, & Trisnaningsih, S. (2019). The effect of good corporate governance on profitability by disclosing corporate social responsibility as an intervening variable in lq 45 companies listed on the Indonesian stock exchange.
Putra, BPD (2015). The influence of the board of commissioners, the proportion of independent commissioners, on company performance. Journal of Theory and Applied Management | Journal of Applied Theory and Management, 8(2)
Ramli, JA, & Ramli, MI (2016). Corporate Governance and Corporate Performance of Malaysian Companies: Examining from an Islamic Perspective. Procedia Economics and Finance, 35(16), 146–155. https://doi.org/10.1016/s2212-5671(16)00019-8
Rofifah, D. (2020). The Effect of Implementation of Good Corporate Governance and Corporate Social Responsibility on Company Values Listed in LQ45. Paper Knowledge. Towards Document History Media.
Sheikh, W., & Alom, K. (2021). Corporate governance, board practices and performance of shipping firms in Bangladesh. Asian Journal of Shipping and Logistics, 37(3), 259–267. https://doi.org/10.1016/j.ajsl.2021.06.005
Sartono. (2010). Financial Management Theory and Applications. 4th Edition. BPFE – Yogyakarta.
now. (2016). Business Research Methods. Research methods for business. Salemba Empat, ISBN 9788578110796.Jakarta.
Sugiyono. (2018). Quantitative Research Methods, Qualitative, and R&D. Alphabet. ISBN 979-8433-64-0. Bandung
Tsafack, G., & Guo, L. (2021). Foreign shareholding, corporate governance and firm performance: Evidence from Chinese companies. Journal of Behavioral and Experimental Finance, 31, 100516. https://doi.org/10.1016/j.jbef.2021.100516
Akbas, HE (2016). The Relationship between Board Characteristics and Environmental Disclosure: Evidence from Turkish Listed Companies. South East European Journal of Economics and Business, 11(2), 7–19. https://doi.org/10.1515/jeb-2016-0007
Ardana and Agus. (2014). Business and Professional Ethics. Salemba Empat, Jakarta.
Charles T. Horngren, et al. (2011). Financial management. Issue 8. Publisher. Erlangga. Jakarta.
Collier, P., & Gregory, A. (1999). Audit committee activity and agency costs. Journal of Accounting and Public Policy, 18(4–5), 311–332. https://doi.org/10.1016/S0278-4254(99)00015-0
Deegan, C. (2004). Financial Accounting Theory. McGraw-Hill Book Company. Sydney.
Gupta, P., & Sharma, AM (2014). A Study of the Impact of Corporate Governance Practices on Firm Performance in Indian and South Korean Companies. Procedia - Social and Behavioral Sciences, 133, 4–11. https://doi.org/10.1016/j.sbspro.2014.04.163
hamdani. (2016). Good Corporate Governance: Review of Ethics in Business Practices. Media Discourse Partners. Jakarta.
Heenetigala, K. (2011). Corporate Governance Practices and Firm Performance of Listed Companies in Sri Lanka. Thesis submitted in fulfillment of the requirements of the degree of Doctor of Business Administration Victoria Graduate School Faculty of Business and Law Victoria University Melbourne.
Helfert, E. (2018). Financial Analysis Techniques, Translation of the Eighth Edition. Jakarta: Erlangga.
Hidayat, AA, & Utama, S. (2017). Board characteristics and firm performance: evidence from Indonesia. International Research Journal of Business Studies, 8(3).
Jensen, MC & Meckling, WH (1976), “firm theory: managerial behavior, agency costs and
ownership structure”, Journal of Financial Economics, 3(4), 305.
Jumingan. (2016). Financial Statement Analysis. Script Earth. Jakarta.
Nawawi, A., Salin, ASAP, Ismail, Z., & Smith, M. (2018). The Influence of a Board's Ethical Commitment on Corporate Governance in Enhancing a Company's Corporate Performance. Journal of Financial Crime.
Priyatno, Duwi. 2008. Independent Learning SPSS (Statistical Product and Service Solution) for Data Analysis and Statistical Testing. Yogyakarta: Mediakom.
Purnama, HK, & Trisnaningsih, S. (2019). The effect of good corporate governance on profitability by disclosing corporate social responsibility as an intervening variable in lq 45 companies listed on the Indonesian stock exchange.
Putra, BPD (2015). The influence of the board of commissioners, the proportion of independent commissioners, on company performance. Journal of Theory and Applied Management | Journal of Applied Theory and Management, 8(2)
Ramli, JA, & Ramli, MI (2016). Corporate Governance and Corporate Performance of Malaysian Companies: Examining from an Islamic Perspective. Procedia Economics and Finance, 35(16), 146–155. https://doi.org/10.1016/s2212-5671(16)00019-8
Rofifah, D. (2020). The Effect of Implementation of Good Corporate Governance and Corporate Social Responsibility on Company Values Listed in LQ45. Paper Knowledge. Towards Document History Media.
Sheikh, W., & Alom, K. (2021). Corporate governance, board practices and performance of shipping firms in Bangladesh. Asian Journal of Shipping and Logistics, 37(3), 259–267. https://doi.org/10.1016/j.ajsl.2021.06.005
Sartono. (2010). Financial Management Theory and Applications. 4th Edition. BPFE – Yogyakarta.
now. (2016). Business Research Methods. Research methods for business. Salemba Empat, ISBN 9788578110796.Jakarta.
Sugiyono. (2018). Quantitative Research Methods, Qualitative, and R&D. Alphabet. ISBN 979-8433-64-0. Bandung
Tsafack, G., & Guo, L. (2021). Foreign shareholding, corporate governance and firm performance: Evidence from Chinese companies. Journal of Behavioral and Experimental Finance, 31, 100516. https://doi.org/10.1016/j.jbef.2021.100516
