Optimizing good Corporate Governance Mechanism to Improve Performance: Case in Indonesia’s Manufacturing Companies

The application of good corporate governance (GCG) aims to improve company performance. In implementing GCG, a mechanism is needed, namely a procedure and a clear relationship between the decision-maker and the party overseeing the decision. The mechanism of GCG can be measured by the numbers of board of directors, independent board of commissioners, audit committees, and also managerial ownership. This research is conducted at manufacturing companies listed on the Indonesia Stock Exchange, with a total sample of 52 companies determined by purposive sampling technique. Data are analyzed by using multiple regression analysis with statistical package for the social sciences (SPSS) tools. The findings show that the board of directors and independent commissioners have an influence on company performance, while audit committees and managerial ownership do not affect the company’s performance. The company’s performance is improved by the existence of an independent board of commissioners that provides guidance and direction as well as supervision to the company management. Meanwhile, the audit committee has no influence, because the audit committee is only responsible for assisting the board of commissioners in monitoring the financial reporting process by the management to improve the credibility of financial statements, and managerial ownership does not affect the company’s performance because the number of management shares is quite low, because of which the management cannot influence the decisions taken at the general meeting of shareholders to improve the company’s financial performance. Thus, if the GCG mechanism goes well, then the company’s performance will increase.

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The effect of good corporate governance mechanism and leverage on the level of accounting conservatism

The Indonesian Accounting Review ◽

10.14414/tiar.v6i1.854 ◽

2017 ◽

Vol 6 (1) ◽

pp. 67

Author(s):

Habiba Habiba

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Stock Exchange ◽

Accounting Conservatism ◽

Managerial Ownership ◽

Governance Mechanism ◽

Manufacturing Companies ◽

Comprehensive Income ◽

Good Corporate Governance ◽

Corporate Governance Mechanism

Accounting conservatism is a condition where a company acknowledges the debts and costs more quickly, but on the other hand, the company acknowledges the income and assets more slowly. Some factors that can affect the accounting conservatism are stan-dards changes, corporate governance, and so forth. The purpose of this study is to analyze the effect occurring on the variable of accounting conservatism when using comprehensive income and income for the current year in manufacturing companies listed on the Indonesian Stock Exchange in 2012 and 2013. The variables studied are institutional ownership, managerial ownership, the existence of audit committee, the number of audit committee meetings, and leverage. The statistical method used in this study is multiple regression analysis. The results of this study indicate that institu-tional ownership, managerial ownership, and the number of audit committee meetings do not have significant effect on accounting conservatism when using comprehensive income and income for the current year, but the variables of the existence of audit committee and leverage have significant effect on accounting conservatism when using comprehensive income and income for current the year.

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Good Corporate Governance, Struktur Kepemilikan Dan Kinerja Perusahaan Properti dan Real Estate

CAPITAL JURNAL EKONOMI DAN MANAJEMEN ◽

10.25273/capital.v3i2.6079 ◽

2020 ◽

Vol 3 (2) ◽

pp. 114

Author(s):

Gabriella Pingkan Larasati Prasetya ◽

Awan Santosa

Keyword(s):

Corporate Governance ◽

Real Estate ◽

Ownership Structure ◽

Audit Committee ◽

Sampling Technique ◽

Institutional Ownership ◽

Managerial Ownership ◽

Company Performance ◽

Manufacturing Companies ◽

Good Corporate Governance

This study aims to examine the GCG and ownership structure of company performance in the property and real estate sub-sector manufacturing companies listed on the Stock Exchange in the 2016-2018 period. The type of research used is quantitative research. The sample of this research used purposive sampling technique so that the samples obtained were 14 companies. analysis used classic assumptions, multiple regression, multiple correlations, coefficient terminated, t test, F test. the results showed that the audit committee affected the company's performance both ROA and EPS, the independent board of commissioners did not affect the company's performance both ROA and EPS, ownership inatitusioanal does not affect the performance of companies with ROA proxies, but with EPS Proxies institutional ownership affects company performance and managerial ownership does not affect company performance both ROA and EPS. keywords: Good Corporate Governance (GCG), ownership structure, company performance, institutional ownership, managerial ownership.

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The Effect of Good Corporate Governance and Sustainability Report on Company Performance

Journal of Advanced Research in Dynamical and Control Systems ◽

10.5373/jardcs/v12i8/20202655 ◽

2021 ◽

Vol 12 (8) ◽

pp. 494-504

Author(s):

Jun aidi ◽

Nurd iono ◽

Ahmad Rifai ◽

Icuk Rangga Bawano

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

Company Performance ◽

Good Corporate Governance ◽

Management Ownership ◽

The Board Of Directors ◽

Sustainability Report

This study examines the effect of good corporate governance and sustainability report on company performance. Good corporate governance is dependent on the size of the board of directors, the proportion of independent commissioners, the size of the audit committee, institutional ownership, management ownership. Sustainability report is facilitated by economic, environmental and social aspect as well as disclosure index. While Company performance is generated by Return on Assets (ROA). This research was conducted on companies listed on the Indonesia Stock Exchange between 2014-2018. The purposive sampling technique was used. Hypothesis testing was done by linear regression analysis. The results of testing the first variable showed that institutional ownership affects ROA and has a negative relationship direction. While the size of the board of directors, the proportion of independent directors, the size of the audit committee, and management ownership have no effect on ROA. However, the result of the second variable showed that the disclosure of economic aspects affects ROA and has a positive relationship direction. While disclosure of environmental and social aspects does not affect ROA.

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FINANCIAL PERFORMANCE: THE ROLE OF GOOD CORPORATE GOVERNANCE (CASE STUDY IN THE MANUFACTURING COMPANIES OF BASIC AND CHEMICAL INDUSTRIAL SECTORS REGISTERED ON THE INDONESIA STOCK EXCHANGE 2016-2018)

Primanomics Jurnal Ekonomi & Bisnis ◽

10.31253/pe.v18i2.350 ◽

2020 ◽

Vol 18 (2) ◽

pp. 36

Author(s):

Ari Susanti ◽

Sri Lestari

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Board Of Directors ◽

Quantitative Research ◽

Audit Committee ◽

Stock Exchange ◽

Manufacturing Companies ◽

Financial Reports ◽

Industrial Sectors ◽

Good Corporate Governance

This study aims to examine the effect of implementing good corporate governance as measured by an independent board of commissioners, board of directors, and audit committee on financial performance measured using Return of Equity (ROE). This research uses quantitative research. The population in this study are manufacturing companies in the basic and chemical industry sectors that consistently publish financial reports on the Indonesia Stock Exchange from 2016 to 2018. Based on the purposive sampling method, a sample of 11 companies is obtained each year to obtain 33 observational data. The data in this study use warpPLS 6.0 software. The results of this study indicate that the independent board of commissioners, the board of directors affect the financial performance, while the audit committee has no effect on financial performance.

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PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADAPERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

JWM (Jurnal Wawasan Manajemen) ◽

10.20527/jwm.v7i1.175 ◽

2019 ◽

Vol 7 (1) ◽

pp. 49

Author(s):

Mira Diyanty ◽

Meina Wulansari Yusniar

Keyword(s):

Corporate Governance ◽

Linear Regression ◽

Multiple Linear Regression ◽

Board Of Directors ◽

Audit Committee ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Governance Mechanism ◽

Good Corporate Governance ◽

The Board Of Directors

The purpose of this study was to analyze the effect of the Good Corporate Governance mechanism on the board of commissioners, the board of directors, the proportion of independent commissioners, the audit committee, CAR on ROA. This study also uses a purposive sampling method for sampling. The analysis test used is multiple linear regression analysis. The population used by companies listed on the Indonesia Stock Exchange in the period 2011 - 2013 and which meet the sample selection criteria. The sample used was 25 companies. Data is collected through secondary data collection in the form of the company's annual report for the period 2011 - 2013 which is published on the Indonesia Stock Exchange. The research hypothesis was tested by multiple linear regression which had met the testing of classical assumptions. The results of the analysis show that the board of commissioners, the proportion of independent commissioners, audit committees, CAR does not significantly influence ROA while the board of directors has a positive and significant effect on ROA.

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Pengaruh Good Corporate Governance Terhadap Manajemen Laba Perusahaan Sektor Barang Konsumsi

Jurnal Ilmiah Akuntansi Kesatuan ◽

10.37641/jiakes.v9i2.875 ◽

2021 ◽

Vol 9 (2) ◽

Author(s):

Veren Noviyanti ◽

Heti Herawati

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Financial Statements ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Independent Variables ◽

Management Board ◽

Good Corporate Governance

Earnings management is a manager's deliberate action to manipulate financial statements with permissible limits with the aim of providing incorrect information for users of financial statements. The variables tested in this study consisted of independent variables and dependent variables. The independent variables tested in this study consisted of independent board of commissioners, managerial ownership, audit committee, and board of commissioners. While the dependent variable is earnings management as measured by the modified Jones model discretionary accruals. This study uses 52 data on manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange from 2016 to 2019. Sampling using the purpose sampling method. All data obtained from the company's annual financial statements. The results of this research show that partially independent board of commissioners and managerial ownership have no effect on earnings management, while the size of the board of commissioners and audit committee has a positive effect on earnings management. Independent board of commissioners, managerial ownership, audit committee, and board of commissioners simultaneously have no effect on earnings management. Keywords: Good Corporate Governance, Earnings Management, Board of Independent Commissioner, Board of Commissioner, Audit Committee, Managerial Ownership

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Pengaruh Mekanisme Corporate Governance Terhadap Ketepatan Waktu Pelaporan Keuangan (Studi Empiris Pada Perusahaan Perbankan Milik Pemerintah Pusat)

JURNAL AKUNTANSI DAN PAJAK ◽

10.29040/jap.v19i1.167 ◽

2018 ◽

Vol 19 (1) ◽

pp. 1

Author(s):

Muhammad Rivandi ◽

Maria Magdalena Gea

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Sampling Method ◽

Stock Exchange ◽

Central Banking ◽

Managerial Ownership ◽

Governance Mechanism ◽

Multiple Regression Models ◽

Corporate Governance Mechanism

This study aims to examine the effect of corporate governance mechanism on the timeliness of financial reporting. The sample of this study are four central banking companies listed in Indonesia Stock Exchange (IDX) selected based on purposive sampling method. The method of data analysis used in this study is multiple regression models. Based on the hypotheses testing result, that the managerial ownership and audit committee have a positive and significant effect on the timeliness of financial reporting, while independent commissioner has no effect on the timeliness of financial reporting

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Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2021/v21i630389 ◽

2021 ◽

pp. 39-50

Author(s):

Abdulrahman Bala Sani ◽

Ruth Oluwayemisi Owoade

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Board Independence ◽

Managerial Ownership ◽

Governance Mechanism ◽

Board Size ◽

Accounting Practice ◽

Creative Accounting ◽

Good Corporate Governance ◽

Corporate Governance Mechanism

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

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The impact of good corporate governance practices on financial reporting quality: Empirical evidence from Jordanian listed companies

Corporate Ownership and Control ◽

10.22495/cocv9i4c1art4 ◽

2012 ◽

Vol 9 (4) ◽

pp. 178-186 ◽

Cited By ~ 1

Author(s):

Khaled Erieg Abu-Risheh ◽

Mo’taz Amin Al-Sa’eed

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Financial Reporting ◽

Stock Exchange ◽

Reporting Quality ◽

Audit Committees ◽

Financial Reporting Quality ◽

Good Corporate Governance ◽

Governance Practices ◽

The Relationship

The main objective of this paper is to analyze the relationship between the good corporate governance practices on the financial reporting quality of Jordanian listed companies. Specifically, we focus on the board’s independence, board’s transparency, and separate audit committee. A listing of Share -Traded Jordanian Companies was available from the Amman Stock Exchange as of 31 December 2011. A total of (167) company shares were traded as of 31 of December 2011. It was decided to distribute (160) questionnaires to the related external auditors, the expertise members of the Audit Committees, and the Jordanian regulatory bodies that oversight the corporate reporting of those companies, which include the Jordanian Securities Commission, Insurance Commission, and Central Bank of Jordan. The empirical study is realized based on a sample of the companies listed on the Amman Stock Exchange. Our research results shows that the good corporate governance practices impact the financial reporting quality, were Independence is considered one of the determinants of the success of financial reporting quality (T = 3.709, 008) and (R= 0.676), in addition to that; the independent variables are able to explain the variance in the dependent variable, a multiple regression test was carried out to test the relationship between board of directors’ transparency, board of directors’ independence, and audit committees, and financial reporting quality (FRQ), they are able to explain nearly 0.805% (R=0.805% P< 0.000) of the variance in financial reporting quality. The correlation analysis allows testing the strength of relationships between several independent variables and one dependent variable, which is the case in this study. The results of correlation analysis shows that the relationships between boards of directors’ transparency, board of directors’ independence, and separate audit committees, and the dependent variable which is financial reporting quality (FRQ), are significant.

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Apakah Classification Shifting Memoderasi Pengaruh Good Corporate Governance terhadap Corporate Social Responsibility Pada Perusahaan Manufaktur yang Terdaftar di BEI?

JURNAL AKUNTANSI EKONOMI dan MANAJEMEN BISNIS ◽

10.30871/jaemb.v8i2.2060 ◽

2020 ◽

Vol 8 (2) ◽

pp. 141-149

Author(s):

Ina Mutmainah

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Institutional Ownership ◽

Negative Influence ◽

Audit Committees ◽

Earning Management ◽

Absolute Difference ◽

Manufacturing Companies ◽

Good Corporate Governance ◽

Csr Disclosure

This study aims to determine the effect of good corporate governance on CSR disclosure which is moderated by earning management. This study uses secondary data from manufacturing companies listed on the Indonesia Stock Exchange for 2014-2018 periods. The purposive sampling method was selected for data collection, then the data was analyzed by using the absolute difference of moderation test. The results of this study indicate that good corporate governance which consists of institutional ownership, and independent commissioners have no significant effect on CSR disclosure, while audit committees have a positive effect on CSR disclosure. Thoreover, this study earnings management strengthen the positive influence of the institutional ownership on CSR disclosure, and strengthen the negative influence of the audit committee on CSR disclosure. However, earning management fails to find moderation role of independent commissioners on CSR disclosure.

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