The Role Of Good Corporate Governance As The Effect Of Planning Function And Coordination Function On Company Performance

2020 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Benny Wendry ◽  
Umar Nimran ◽  
Hamidah Nayati Utami ◽  
Tri Wulida Afrianty
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Good Corporate Governance ◽  
Planning Function ◽  
Coordination Function

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.

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 Toward Firm Performance in Indonesia: The Role of Good Corporate Governance and Investment Opportunity Set

2021 ◽  
Vol 17 (1) ◽  
pp. 81-90
Author(s):  
Dedi Rusdi ◽  
Indri Kartika ◽  
Maya Indriastuti
Keyword(s):  
Corporate Governance ◽  
Structural Equation Modeling ◽  
Firm Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Investment Opportunity ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Investment Opportunity Set

Abstract: This study examined the role of good corporate governance and investment opportunity set in maintaining firm performance. This study's sample population comprised 240 manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. The research sample was selected using a purposive sampling method. The data were analyzed by using structural equation modeling analysis (SEM). The results showed that good corporate governance in terms of board size had a negative effect on firm performance. Meanwhile, good corporate governance in terms of board independence and investment opportunity set had a positive effect on firm performance.Keywords: good corporate governance, investment opportunity set, firm performance Menuju Kinerja Perusahaan di Indonesia: Peran Good Corporate Governance dan Investment Opportunity Set Abstrak: Studi ini menguji peran good corporate governance dan investment opportunity set dalam menjaga kinerja perusahaan. Populasi sampel penelitian terdiri dari 240 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia dari tahun 2016 hingga 2019. Sampel penelitian dipilih dengan menggunakan metode purposive sampling. Analisis data menggunakan analisis structural equation modeling (SEM). Hasil penelitian menunjukkan bahwa good corporate governance ditinjau dari ukuran dewan komisaris berpengaruh negatif terhadap kinerja perusahaan. Sedangkan good corporate governance ditinjau dari independensi dewan komisaris dan investment opportunity set berpengaruh positif terhadap kinerja perusahaan.Kata kunci: good corporate governance, investment opportunity set, kinerja perusahaan

scholarly journals Keputusan Keuangan dan Good Corporate Governance terhadap Kinerja Dimoderasi Ukuran Perusahaan

2019 ◽  
Vol 3 (1) ◽  
pp. 1-11
Author(s):  
AINUN JARIAH
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Management ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Multiple Linear Regression Analysis ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Financial Decisions ◽  
Good Corporate Governance

Optimal financial performance is a company goal that can be achieved through the implementation of financial management functions. One way to improve company performance in addition to financial decisions is to implement good corporate governance. This study aims to determine the effect of financial management decisions and good corporate governance, partially or simultaneously on financial performance with the size of the company as moderating manufacturing in Indonesia. The number of samples is 37 manufacturing companies that routinely publish financial statements for the period 2014-2017. Using multiple linear regression analysis and moderation techniques, the results of the study show that partially funding decisions and good corporate governance significantly affect financial performance. Only investment decisions that have a significant partial effect on the size of the company. Investment decisions, funding decisions, dividend policies and good corporate governance simultaneously have a significant effect on both company size and financial performance. And the size of the company does not moderate the influence of financial decisions and good corporate governance on financial performance.

scholarly journals PENGARUH FREE CASH FLOW DAN LEVERAGE TERHADAP MANAJEMEN LABA DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

AKUNTABILITAS ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 69-82
Author(s):  
Erma Setiawati ◽  
Mujiyati Mujiyati ◽  
Erma Marga Rosit
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Earnings Management ◽  
Cash Flow ◽  
Free Cash Flow ◽  
Leverage Effect ◽  
Purposive Sampling ◽  
Good Corporate Governance

This research aimed to examine the effect of free cash flow and leverage to earnings management.This study also examines the role of good corporate governance as measured by the index Government in moderating influence of free cash flow and leverage on earnings management. This research was conducted in the company are listed in the JakartaIslamicIndex(JII)from2015-2017 and unlisted in the Bursa Efek Indonesia(BEI).The sample is determined by purposive sampling with 45 samples. This analysis uses regression analysis moderation (MRA). The results of the research indicate where (1) free cash flow significant effect on earnings management, (2) no leverage effect on earnings management, (3) good corporate governance as measured by the index of corporate governance is not able to moderate the influence of free cash flow and earnings management

Is top-management remuneration influenced by board characteristics?

2015 ◽  
Vol 23 (1) ◽  
pp. 60-79 ◽  
Author(s):  
Sebastien Deschenes ◽  
Hamadou Boubacar ◽  
Miguel Rojas ◽  
Tania Morris
Keyword(s):  
Corporate Governance ◽  
Academic Research ◽  
Top Management Teams ◽  
Top Management ◽  
Management Compensation ◽  
Content Type ◽  
Board Characteristics ◽  
Good Corporate Governance

Purpose – The purpose of this article is to examine if certain board characteristics have an impact on the total remuneration of top management and the ratio of stock-based remuneration to total top-management remuneration. Design/methodology/approach – The study draws on data from the largest public Canadian companies, the constituents of the TSX/60 index. The study controls for firm size and profitability. Findings – The authors concludes that total remuneration of top management is directly linked to board-member total remuneration and the board average number of director-tenure years. The study also shows that the ratio of stock-based to total top-management remuneration is positively affected by the percentage of independent directors, total remuneration of board directors, the ratio of stock-based remuneration of directors to their total remuneration and the average number of tenure years of the board of directors. Practical implications – If regulators are determined to curb the excesses in top-management remuneration by means of promoting boards with certain characteristics, they should implement measures facilitating the control of directors’ remuneration and tenure, to discourage cronyistic behavior. Good corporate governance requires that the board act as a counterbalance to top management, ensuring that a substantial percentage of top-executive total compensation is variable, and not fixed. According to our findings, the boards that are the most likely to hold managerial avoidance of variable pay in check are those favoring director independence, variable director remuneration and longer director tenures. Social implications – The present article examines specifically the latter aspect, namely, the role of board characteristics (independence, size, compensation, board director ownership and tenure, etc.) in the determination of top-management compensation. This relationship is important because it allows us to further the analysis of corporate governance. If the above-mentioned traits of boards have a meaningful relationship with the compensation of the top management, one might conclude that certain practices in the composition of boards could influence good corporate governance practices. This is relevant for regulatory agencies, for investors and for corporations. Originality/value – The article adds to the extant literature in a number of ways. Firstly, it considers the role of the traits of the board in the determination of the compensation of the top-management teams, and not only of the chief executive officer, as is the focus of previous literature. Secondly, the article focuses on the power interplay between boards and managers, and, more particularly, on the ability of boards to be an effective mechanism of corporate governance. Finally, the article examines the potential impact of board traits in the determination of top-management compensation in the context of Canadian firms, a subject that has received less attention from academic research, which has mostly concentrated on analyzing the issue in the US context.

Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 26-32
Author(s):  
Chermian Eforis
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Agency Cost ◽  
Positive Influence ◽  
Jel Classification ◽  
State Ownership ◽  
Company Performance ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Negative Effect

Objective - The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia's SOEs and the influence of state ownership on company performance. Methodology/Technique - This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015. Findings - The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets. Novelty - One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia. Type of Paper: Empirical Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; Return On Assets; Indonesia. JEL Classification: G32, H70, G34.

scholarly journals Implementation of Social Culture in Corporate Governance: A Literature Study

2019 ◽  
Vol 11 (1) ◽  
pp. 293
Author(s):  
Mukhtaruddin Mukhtaruddin ◽  
M. Adam ◽  
Isnurhadi Isnurhadi ◽  
Luk Luk Fuadah
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Literature Study ◽  
Social Culture ◽  
The Public ◽  
Good Corporate Governance ◽  
The People ◽  
Governance Index

Good corporate governance (GCG) is a principle implemented by the company to ensure that the interests of stakeholders are not neglected. GCG consists of five main pillars which are transparency, accountability, responsiveness, independency, and fairness. In Indonesia, GCG implementation has not been effective enough as it is only necessarry for large companies and the public. The instrument used to assess GCG implementation is not appropriate either, examples of such are its portion, the existence and role of independent commissioners, portion, the existence and role of the audit committee, and ownership structure. This paper analyzes the implementation of culture found in Indonesian people living in GCG system. With the implementation of this social culture, the corporate GCG is better in its implementation because it is built on the noble values of the people. It then became the Pancasila which is the philosophy of Indonesia as such the the GCG implementation is accessed using the Pancasila Corporate Governance Index (PCGI).

scholarly journals A Literature Review of the Perspectives of CEO Pay: An Analysis of Issues and Controversies

2018 ◽  
Vol 8 (4) ◽  
pp. 44
Author(s):  
Faitira Manuere ◽  
Precious Hove
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Executive Compensation ◽  
Ceo Compensation ◽  
Executive Pay ◽  
The Core ◽  
Good Corporate Governance ◽  
Ceo Pay ◽  
Conceptual Background

The purpose of this paper is to review the literature on various theories that are used in organisations today to determine executive compensation. This paper analyses the relevance of the theories that are used to determine CEO compensation in modern corporations. The paper makes an attempt to review extensively the literature on CEO compensation. This paper looks at the concerns of sixteen theories of executive compensation. This paper further analyses the special features that are associated with CEO pay. These features help us to understand the problems that experts on executive pay experience when they try to define the exact CEO pay when compared to other rewards that are non financial. The drivers of executive pay are quantified and qualified in order to provide the conceptual background needed to understand the core factors that determine executive pay. Therefore the role of institutional investors in driving managerial salary is explored in detail. Finally, the effects of firm size and good corporate governance on executive pay are carefully analysed.

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