Corporate Governance: Principles and Objectives

1998 ◽  
Vol 2 (2) ◽  
pp. 18-22
Author(s):  
N. Vittal
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Code Of Conduct ◽  
Ethical Values ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Fundamental Value ◽  
The Government

Corporate Governance provides the fundamental value framework for the culture of an organisation which ensures efficient functioning of enterprises on sound ethical values and principles. Corporate governance has become a necessity, especially since 1991, when India made a U-turn in its economic policy and the revised policy of the government was aimed at attracting funds from foreign financial institutions. The primary resonsibiity of good corporate governance is that of the Board of Directors. For better corporate governance the boards should perform the role of monitoring the functioning of an organisation, without at the same time reducing the effectiveness of the management by interfering with their day-to-day matters. One of the impediments in the way of good corporate governance is corruption. The three factors within any system which generate corruption are: scarcity, lack of transparency and delay. If these three problems are tackled effectively, corruption can be checked to a great extent. As far as public sector undertakings are concerned, the “Code of Conduct and Ethics” should facilitate the redesigning of the PSEs.

scholarly journals Implication of good corporate governance and leverage on earnings management

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Joni Hendra ◽  
Hery Koesharjono ◽  
Seger Priantono
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Management Practices ◽  
Stock Exchange ◽  
Financial Statements ◽  
Funding Sources ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Fundamental Value

Company management (agent) is the party most concerned to practice earnings management to deceive the users of financial statements so that management gain private gain (obtaining privat gains). In addition, firms with high leverage ratios are influential in performing earnings management practices because the company is in default. The existence of the principle of good corporate governance is expected to minimize earnings management resulting in financial statements do not describe the fundamental value of the company actually.The study aims at stating wheader is proves significant influence between the institutional ownership, the composition of independent commissioners, the size of the board of directors, the size of the company and the leverage on earnings management.The results of research on non-bank companies listed in LQ 45 in Indonesia Stock Exchange year 2013-2016 show that partially the composition of independent commissioners, firm size and leverage have a positive effect on earnings management. When tested simultaneously indicate that instisional ownership, composition of commissioner independent, the composition of the board of directors, the size of the company and leverage have a significant effect on  earnings management.  The size of the company is a research variable that has a dominant influence on earnings management, because the larger the size or scale of the company it will be easier for the company in obtaining funding sources, both internal and external.

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

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.

Pengaruh Dewan Direksi, Dewan Komisaris Independen. Kepemilikan Manajerial, Kepemilikan Institusional, Dan Dewan Pengawas Syariah Terhadap No Performing Financing (Studi Kasus Pada Bank Umum Syariah Yang Terdaftar Di OJK Periode 2015-2019)

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Yugi Maheswari ES ◽  
Iwan Fakhruddin ◽  
Azmi Fitriati ◽  
Bima Cinintya Pratama
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Commercial Bank ◽  
Financial Services ◽  
Supervisory Board ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
The Board Of Directors

Tujuan penelitian ini untuk mengetahui pengaruh penerapan Good Corporate Governance (GCG) yang diproksikan oleh dewan direksi, dewan komisaris independen, kepemilikan manajerial, kepemilikan institusional, dan dewan pengawas syariah terhadap risiko pembayaran yang diukur dengan rasio Non Performing Financing (NPF) pada Bank Umum Syariah. Populasi penelitian adalah Bank Umum Syariah Yang Terdaftar di Otoritas Jasa Keuangan. Data yang digunakan adalah data sekunder berupa laporan tahunan Bank Umum Syariah periode 2015-2019. Sampel yang dikumpulkan adalah 14 bank syariah sebayak 70 data. Hasil penelitian menunjukkan bahwa dewan direksi berpengaruh negative erhadap NPF. Dewan komisaris independen, kepemilikan manajerial, kepemilikan institusional, dan dewan pengawas syariah tidak berpengaruh terhadap NPF.  The purpose of this study is to determine the effect of the implementation of Good Corporate Governance (GCG) which is proxied by the board of directors, the board of independent commissioners, managerial ownership, institutional ownership, and the sharia supervisory board against payment risk as measured by the Non Performing Financing (NPF) ratio at the Bank Sharia General. The study population was a Sharia Commercial Bank Registered at Financial services Authority. The data used was secondary data in the form of reports annual Sharia Commercial Bank for the period 2015-2019. The samples collected were 14 Islamic banks as much as 70 data. The results showed that the board of directors has a negative effect on NPF. Independent board of commissioners, managerial ownership, institutional ownership, and sharia supervisory board have no effect on NPF.

scholarly journals Pengaruh Good Corporate Governance dan Budaya Tri Hita Karana Pada Kinerja Bank Perkreditan Rakyat

2017 ◽  
pp. 17
Author(s):  
I Gusti Ayu Made Asri Dwija Putri ◽  
I.G.K.A Ulupui ◽  
Ni Gusti Putu Wirawati
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Sampling Method ◽  
Research Result ◽  
Economic Problem ◽  
Good Corporate Governance ◽  
Result Show ◽  
The Government ◽  
Cultural Effect

The purpose of this study, namely to obtain empirical evidence that the implementation of corporate governance affect the performance of “Bank Perkreditan Rakyat” ( rural banks), and the role of local culture “Tri Hita Karana “to the BPR’s performance. The population is all BPR located in Badung and Denpasar. The samples using purposive sampling method. The data in this study were collected using a questionnaire are distributed directly to the object of research. “BPR” number into the sample in this study was 65 Banks. Data analyzed by model Multiple Regression Analysis. The research result show that the principles of corporate governance and the local cultural effect on the performance of BPR in Badung and Denpasar. “Bank Perkreditan Rakyat”. The implication of the study is important for the government to solve the economic problem using Corporate Governance and Tri Hita Karana concept.  

scholarly journals ANALISIS PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP TAX AVOIDANCE DENGAN DIMODERASI GOOD CORPORATE GOVERNANCE

2018 ◽  
Vol 2 (02) ◽  
pp. 211-234
Author(s):  
Levi Martantina ◽  
R. Soerjatno
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Board Of Directors ◽  
Tax Avoidance ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect ◽  
Independent Variable ◽  
Corporate Social

This study aims to examine the effect  of Corporate Social Responsibility on Tax Avoidance in which Good Corporate Governance is moderating variable. Corporate Social Responsibility is independent variable whereas dependent variable is Tax Avoidance. The result of testing the first hyphothesis found that Corporate Social Responsibility has a negative effect on Tax Avoidance. In other words, the company that does extensive disclosure, the company does not practice Tax Avoidance. The result of testing the second hypothesis found that the exixtence of Good Corporate Governance in the board of directors mediate the influence of Corporate Social Responsibility with Tax Avoidance. So that the existence of the board of directors is able to contribute in making extensive disclosure towards Corporate Social Responsibility and practice of Tax Avoidance.

scholarly journals ENHANCING CORPORATE DEMOCRACY BY THE USE OF SHAREHOLDER PROXIES

Obiter ◽  
2019 ◽  
Vol 40 (1) ◽  
Author(s):  
Maleka Femida Cassim
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Company Law ◽  
Public Companies ◽  
Proxy Voting ◽  
Shareholder Engagement ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Off Time ◽  
Practical Question

Effective shareholder control over the board of directors is patently in the interests of good corporate governance, accountability and transparency. In recognition of this modern reality, the policy focus in company law has shifted to encouraging shareholder participation and shareholder engagement in corporate affairs. Bearing in mind that very few shareholders of large public companies attend meetings in person, proxy voting is of vital importance to corporate democracy. This article discusses enhanced rights conferred by the Companies Act 71 of 2008 in relation to shareholder proxies who attend, speak and vote at shareholders’ meetings. It also considers the pressing practical question whether companies may impose a cut-off time for the lodgement of shareholder proxies.

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

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

<em><span lang="EN-US">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.</span></em>

scholarly journals Effect Of Good Corporate Governance On Company Profitability RE & Property Sector In Indonesia

2019 ◽  
Vol 23 (1) ◽  
pp. 17
Author(s):  
Ahmad Azmy, Dea Restiya Anggreini, Mohammad Hamim
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
The Board Of Directors

This study aims to examine the effect of Good Corporate Governance (GCG) on company profitability. The dependent variable are Return On Assets (ROA) and Return On Equity (ROE). The independent variable are Good Corporate Governance (GCG) represented by the Board of Commissioners, the Board of Directors, and the Audit Committee. This study uses secondary data from audited financial statements of Real Estate and Property companies in 2013-2017. The analytical tool used in this study uses panel data regression. Based on the results of the study it is known that the Board of Directors and Audit Committee variables have a significant positive effect on ROA and ROE. The Board of Commissioners variable has no influence and negative relationship to ROA and ROE.

scholarly journals PERAN GOOD CORPORATE GOVERNANCE DALAM MEMINIMALISIR TERJADINYA FINANCIAL DISTRESS

BISMA ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 36
Author(s):  
Wulan Maulidiss Sa’diah ◽  
Mohamad Nur Utomo
Keyword(s):  
Board Of Directors ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Agency Conflicts ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect

This study aims to determine the effect of managerial ownership, independent board of commissioners, board of directors, and audit committee on financial distress in banking companies listed on the Indonesia Stock Exchange from 2015 to 2019. This research used the purposive sampling method with a sample of 41 companies consisting of 205 observational data. Data were analyzed using logistic regression. The results showed that independent board of commissioners and board of directors had a significant and negative effect on financial distress. However, managerial ownership and audit committee did not have a significant effect on financial distress. This study supports the agency theory, which states that the monitoring role of the independent board of commissioners and the board of directors can minimize the occurrence of agency conflicts in a company. Keywords: audit committee, board of directors, financial distress, independent board of commissioners, managerial ownership

scholarly journals The Implementation of Business Judgment Rule Principle in Managing the Company

2020 ◽  
Vol 3 (2) ◽  
pp. 32
Author(s):  
Busyra Azheri ◽  
Upita Anggunsuri
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Legal Protection ◽  
Business Decision ◽  
Business Judgment Rule ◽  
Good Corporate Governance ◽  
Reputation Risk ◽  
The Board Of Directors ◽  
Credit Agreement ◽  
Branch Office

A business decision is very important to determine the quality of the Board of Directors in carrying out their duties professionally and responsibly as expected by Good Corporate Governance (GCG). The effectiveness of the Board of Directors is the center of the implementation of Good Corporate Governance. Bank Business is very risky (such: credit risk, reputation risk, etc.). The Board of Directors in making a business decision, will always face unpredictable condition. In Banking practice, the Head of Branch Office Bank is the extension of Director, if the Head of Branch Office Bank signs credit agreement out of the rules (plafond). His action has categorized as ultra vires, so the consequence is the Head of Branch Office Bank can be held responsible for his action. In this case, the Board of Directors has not taken responsibility for the action of the Head of Branch Bank, based on Business Judgment Principle, the Director has not taken its responsibility for ultra vires act which is done by the Head of Branch Office Bank, as along as Director has managed the Company in good faith, carefully and does not against the law. Therefore, Business Judgment Principle gives legal protection to the Director in making a business decision

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