The Influence of Corporate Governance Quality on Company Financial Performance with Capital Structure as a Moderating Variable in the Transportation & Logistics Sector on the Indonesian Stock Exchange
Keywords:
Capital structure, corporate governance,firm performance
Abstract
This research aims to examine the influence of corporate governance quality on company performance with capital structure as a moderating variable. The population in this study were 36 transportation & logistics sector companies listed on the Indonesia Stock Exchange in 2018-2022. The sampling method is proportional sampling, so that 26 sample companies were obtained with 96 observations. The type of data used is secondary data obtained from the Indonesian Stock Exchange website, namelywww.idx.co.idand sample company websites. The data analysis method uses Moderated Regression Analysis (MRA) using a programIBM SPSS Statistics 25. The research results show that (1) the quality of corporate governance (CGI) has an insignificant negative effect on company performance (ROA) (2) capital structure (DER) is able to moderate the relationship between the quality of corporate governance (CGI) and company performance
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References
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AGYEI, A., & OWUSU, A. R. (2014). The Effect of Ownership Structure and Corporate Governance on Capital Structure of Ghanaian Listed Manufacturing Companies. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1). https://doi.org/10.6007/ijarafms/v4-i1/547
Ahmed Sheikh, N., & Wang, Z. (2012). Effects of corporate governance on capital structure: empirical evidence from Pakistan. Corporate Governance: The International Journal of Business in Society, 12(5), 629–641. https://doi.org/10.1108/14720701211275569
Akbar, S., Poletti-Hughes, J., El-Faitouri, R., & Shah, SZA (2016). More on the relationship between corporate governance and firm performance in the UK: Evidence from the application of generalized method of moments estimation. Research in International Business and Finance, 38, 417–429. https://doi.org/10.1016/j.ribaf.2016.03.009
Al-ahdal, WM, Alsamhi, MH, Tabash, MI, & Farhan, NHS (2020). Research in International Business and Finance The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51(September 2018), 101083. https://doi.org/10.1016/j.ribaf.2019.101083
Andreou, P. C., Louca, C., & Panayides, P. M. (2014). Corporate governance, financial management decisions and firm performance: Evidence from the maritime industry. Transportation Research Part E: Logistics and Transportation Review, 63, 59–78. https://doi.org/10.1016/j.tre.2014.01.005
Bhatt, P. R., & Bhatt, R. R. (2017). Corporate governance and firm performance in Malaysia. Corporate Governance: The International Journal of Business in Society, 17(5), 896–912. https://doi.org/10.1108/CG-03-2016-0054
Budiman, J., & Helena, H. (2017). Analysis of the Effect of Corporate Governance on Capital Structure with the Quality of Financial Reports as a Mediator in Companies Listed on the Indonesian Stock Exchange. Maranatha Management Journal, 16(2), 187. https://doi.org/10.28932/jmm.v16i2.389
Cheung, Y., Connelly, J. T., Jiang, P., & Limpaphayom, P. (2011). Future Performance? Evidence from Hong Kong. 159–197.
Company, P., Jensen, C., & Meckling, H. (1976). THEORY OF THE FIRM : MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE. 3, 305–360.
Cuomo, F., Mallin, C., & Zattoni, A. (2016). Corporate Governance Codes: A Review and Research Agenda. Corporate Governance: An International Review, 24(3), 222–241. https://doi.org/10.1111/corg.12148
Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Research in International Business and Finance Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42(June), 689–709. https://doi.org/10.1016/j.ribaf.2017.07.011
Ghofur, AM (2023). ANALYSIS OF THE INFLUENCE OF CORPORATE GOVERNANCE ON COMPANY FINANCIAL PERFORMANCE WITH CAPITAL STRUCTURE AS A MODERATION VARIABLE AND FIRM SIZE, FIRM AGE, SALES GROWTH AND PBV AS CONTROL VARIABLES (Study of Non-financial Companies Listed on the Indonesian Stock Exchange for the Period 2018 – 2022). 12, 1–11.
Gupta, P., Kennedy, D., & Weaver, S. (2009). Corporate governance and firm value: Evidence from Canadian capital markets. Corporate Ownership and Control, 6(3), 293–307. https://doi.org/10.22495/cocv6i3c2p4
Haß, L. H., & Zhang, Q. (2014). Corporate governance and the information environment: Evidence from Chinese stock markets. International Review of Financial Analysis. https://doi.org/10.1016/j.irfa.2014.03.010
Kim, D.G., & Lee, C.W. (2021). Exploring the roles of self-efficacy and technical support in the relationship between techno-stress and counter-productivity. Sustainability (Switzerland), 13(8), 1173–1182. https://doi.org/10.3390/su13084349
Mansour, M., Al Amosh, H., Alodat, AY, Khatib, SFA, & Saleh, MWA (2022). The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure. Sustainability (Switzerland), 14(17), 1–25. https://doi.org/10.3390/su141710525
Maranho, F.S., & Leal, R. (2018). Corporate governance and firm performance in Latin America: a meta-analysis. Academia Revista Latinoamericana de Administración, 31(1), 195–211. https://doi.org/10.1108/ARLA-04-2017-0126
Muwafiq, A., Purnomo, DE, & Ainur, F. (2023). THE INFLUENCE OF GOOD CORPORATE GOVERNANCE, COMPANY SIZE, CAPITAL STRUCTURE AND LEVERAGE ON FINANCIAL PERFORMANCE IN LQ45 COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2019 – 2022. 19, 63–75.
Nuswandari, Cahyani. (2009). THE INFLUENCE OF CORPORATE GOVERNANCE PERCEPTION INDEX ON COMPANY PERFORMANCE IN COMPANIES LISTED ON THE JAKARTA STOCK EXCHANGE. 16(2), 70–84.
Pillai, R., & Al-Malkawi, HAN (2018). On the relationship between corporate governance and firm performance: Evidence from GCC countries. Research in International Business and Finance, 44, 394–410. https://doi.org/10.1016/j.ribaf.2017.07.110
Renders, A., Gaeremynck, A., & Sercu, P. (2010). Corporate-governance ratings and company performance: A cross-European study. Corporate Governance: An International Review, 18(2), 87–106. https://doi.org/10.1111/j.1467-8683.2010.00791.x
Shahwan, T.M. (2015). The Effects of Corporate Governance on Financial Performance and Financial Distress: Evidence from Egypt. Corporate Governance: The International Journal of Business in Society.
Yu, C. C. S. (2014). Firm risk and performance : the role of corporate governance. https://doi.org/10.1007/s11846-014-0132-x
