scholarly journals BOARD DIVERSITY AND FINANCIAL PERFORMANCE IN INDONESIA

2021 ◽  
Vol 2 (2) ◽  
pp. 86-95
Author(s):  
Werner Ria Murhadi ◽  
Deliana Azaria ◽  
Bertha Silvia Sutedjo
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Firm Value ◽  
Independent Directors ◽  
Board Independence ◽  
Board Diversity ◽  
Company Value ◽  
Large Size ◽  
The Board Of Directors ◽  
The Relationship

Corporate governance has attracted many researchers to examine the relationship between board characteristics and financial performance. This study aims to determine the effect of board diversity, board size, and board independence on financial performance. This research is panel data with the number of observations reaching 1,355 years of observation. Financial performance is measured using accounting-based and market-based. It was found that the presence of female directors could not provide sound financial performance, even with a woman's prudence attitude would have an impact on decreasing the company's market value. The size of the board of directors does not affect financial performance, and the large size of the board of directors will have an impact on the decline in firm value. Independent directors are also not proven to be able to improve the company's financial performance; even the tendency of companies to carelessly fulfill the provisions of the rules regarding the existence of independent directors will bring a burden to the company so that it has an impact on the decline in company value.

PENGARUH BOARD DIVERSITY, KOMPENSASI DEWAN DIREKSI DAN KEPEMILIKAN MANAJERIAL DEWAN DIREKSI TERHADAP NILAI PERUSAHAAN

Analisis ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Marrieda Testarossa Pradana ◽  
Khairusoalihin Khairusoalihin
Keyword(s):  
Board Of Directors ◽  
Firm Value ◽  
Stock Exchange ◽  
Educational Background ◽  
Independent Directors ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Board Diversity ◽  
Company Value ◽  
The Board Of Directors

This study aims to determine the effect of the proportion of women in the board of directors, educational background of the board of directors and independent directors and compensation of the board of directors and managerial ownership on company value in goods and consumer sector manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2015 - 2019. The research population used is manufacturing companies in the goods and consumption sectors listed on the Indonesia Stock Exchange for the period 2015–2019. The method in this study uses proposive sampling. With this method, the number of samples in this study was obtained as many as 9 companies. The analytical tool of this study uses multiple linear regression. The results of the study show that (1) partially the educational background of the board of directors has a negative and significant effect on firm value, independent directors have a positive and significant effect on firm value, (2) while the proportion of women in directors, board compensation and managerial ownership has no effect. significant towards firm value, (3) simultaneously the proportion of women on the board of directors, educational background of the board of directors, independent directors, compensation for the board of directors and managerial ownership have a significant effect on firm value.

Board Characteristics and Financial Performance of Government-Owned Sugar Manufacturing Companies in Kenya

2021 ◽  
Vol 5 (4) ◽  
pp. 41-56
Author(s):  
Yvonne Nyaundha Odhiambo ◽  
Keyword(s):  
Financial Performance ◽  
Board Members ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Board Size ◽  
Board Diversity ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Relationship ◽  
Firm Attributes

The board of directors is tasked with the obligation and the responsibility of administering changes and operations that support the mission of the organization to realize its vision. Kenya in the recent past, has witnessed a number of organizations listed in the NSE collapsing with the board of directors taking the blame. Specifically, the study sought to establish the association between; board diversity, board independence, board size and financial performance of government-owned sugar manufacturing companies in Kenya. The study sought to determine whether firm attributes have a moderating impact on the relationship between board characteristics and financial results of Kenyan government-owned sugar manufacturing companies. The study adopted the Agency Theory and Stewardship Theory. The study targeted the Government-Owned Sugar manufacturing companies in Kenya during the years 2000 to 2016 when the companies were operational. The study used secondary data where panel data was used. The findings indicated that board diversity and financial performance of government-owned sugar manufacturing companies. In addition, board independence and financial performance of government-owned sugar manufacturing companies was also significant. Board Size had a positive but insignificant relationship with financial performance of government-owned sugar manufacturing companies in Kenya. Firm attributes had no significant moderating effect on the relationship between board characteristics and financial performance of government-owned sugar manufacturing companies. The study recommended that the board members should consist of at least half gender diversity of the board members as determined by the board based on the requirements stipulated by the trade authority. Further, the study recommended that the board members must be independent directors, and their independence should be continuously maintained and reviewed at least annually. Keywords: Board Diversity, Board Independence, Board Size, Firm Attributes & Financial Performance

scholarly journals Corporate Governance Independence in the Board of Directors and The Firms Financial Performance: Empirical Analysis of Cement Sector Firms Listed on Pakistan Stock Exchange (PSX)

2021 ◽  
Vol 09 (01) ◽  
pp. 01-24
Author(s):  
Muhammad Noman Ansari ◽  
◽  
Dr. Sayed Fayaz Ahmed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Agency Cost ◽  
Independent Directors ◽  
Return On Assets ◽  
Return On Equity ◽  
Board Committees ◽  
The Board Of Directors

The corporate governance measures emphasize on presence of independence of the board of directors to bring objectivity and reducing the agency cost; whereas the institutions have the ability, skills and time to supervise the activities of the management and channelize it to better financial performance. The objective of this study is to explore the effect of independence of the board of directors on the financial performance of the firms. The independence was gauged by number of independent directors and non-executive directors, chairing of board committees by independent directors, institutional holding in the firm, and presence of institutional directors on the board. The financial performance of the firm is gauged using the return on equity (ROE) and return on assets (ROA). The corporate governance and financial performance data comprising of 75 firm years from 2014 to 2018 of the firms listed in the cement sector of the Pakistan Stock Exchange (PSX) were selected. GLM regression was performed to study the relationship between the variables. The results suggest that the majority of independence on the board of directors do not affect the financial performance of the firm; the independence in the board committees negatively affects the financial performance, whereas the presence of institutional holding and director in the firm does not have any effect on the performance of the firm. The study will provide a basis for future studies to find the association that independence can bring objectivity, reduce agency cost, and affect the performance of the firm.

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

Board independence and private information-based trading: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiunn-Shyan Khong ◽  
Chee-Wooi Hooy ◽  
Chun-Teck Lye
Keyword(s):  
Panel Data ◽  
Private Information ◽  
Audit Committee ◽  
Dynamic Panel Data ◽  
Independent Directors ◽  
Board Independence ◽  
Disclosure Quality ◽  
Board Diversity ◽  
Content Type ◽  
The Relationship

PurposeThis study investigates the effect of board independence on private information-based trading (PIBT) events. This study also examines the interaction effects of firm's disclosure quality and the statutory and demographic roles of independent directors and board diversity attributes, respectively, on the relationship between board independence and PIBT.Design/methodology/approachThis study uses panel data of 811 non-financial public listed companies in Bursa Malaysia for the sample period 2009–2017. The dynamic general method of moments (DGMM) is used for the dynamic panel data estimation and to address the potential endogeneity problem.FindingsThe results show that board independence has a negative effect on PIBT and the effect could be strengthened by firm's disclosure quality, women independent directors and board gender diversity, but attenuated by CEO duality. The overall result suggests that apart from independent audit committee, the statutory and demographic attributes of independent directors and board diversity, and firm's disclosure quality are complementary to board independence in preventing persistent PIBT.Originality/valueThis study augments the existing corporate governance and information-based trading literature from the perspectives of firm's disclosure quality, and the statutory and demographic roles of independent directors and board diversity attributes, by examining their effects on the relationship between board independence and PIBT.

scholarly journals Enterprise Risk Management Best Practices for Improvement Financial Performance in Manufacturing SMEs in Cameroon

2017 ◽  
Vol 8 (3) ◽  
pp. 1004-1012
Author(s):  
Mbiki Mamai ◽  
Song Yinghua
Keyword(s):  
Best Practices ◽  
Financial Performance ◽  
Board Of Directors ◽  
Small And Medium Enterprises ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Risk Culture ◽  
Medium Enterprises ◽  
The Relationship

The aim of this study is to determine the relationship between the best practices and the financial performance among 86 manufacturing small and medium enterprises in Cameroon. To achieve this objective, we will carry out a Multivariate Analysis; and the results based on correlation analysis highlight a positive and significant impact of risk culture on financial performance of these enterprises and also show that the independence of the board of directors by itself is not sufficient to increase the firm’s performance.

Tax Planning and Corporate Governance on Firm Value: Board Diversity as Moderating

2020 ◽  
Vol 11 (1) ◽  
pp. 52-52
Author(s):  
Amelia ◽  
Yulius Kurnia Susanto
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Planning ◽  
Board Independence ◽  
Board Meeting ◽  
Board Diversity ◽  
The Relationship ◽  
Female Member

This research is intended to analyse the influence of tax planning, CEO ownership, female member, board size, board independence, audit committee, and board meeting on firm value and the influence of board education background and board age on the relationship between tax planning and firm value in non-financial companies listed in Indonesia Stock Exchange. The population of this research are all non-financial companies consistently listed in Indonesia Stock Exchange from 2016 to 2018. This research uses 53 samples of non-financial companies selected through purposive sampling method resulting in 159 data to be analysed using moderating regressions analysis. The result of this research showed that audit committee has influence positive and significant on firm value. The board age has influence positive and significant on the relationship between tax planning and firm value. While tax planning, CEO ownership, female member, board size, board independence, board meeting have no significant influence on firm value. The influence of board education background on the relationship between tax planning and firm value has no significant. The increase in the size of audit committee will increase the value of firm, it is because the presence of audit committee that consists of independent members will reduce financial manipulation or fraud in the firms. Board age is strengthen the relationship between tax planning and firm value. Because the older the member of board directors, the more they obey their obligation to pay taxes, so the tax planning activities will be more effective and it will increase the value of the firm. Keywords: Firm Value, Tax Planning, Board Diversity, Corporate Governance

scholarly journals Impact of Interaction Between the Board of Directors and the Reputation of the Audit on the Performance of Companies: Study on the Tunisian Context

2018 ◽  
Vol 8 (4) ◽  
pp. 287
Author(s):  
Emna Boumediene
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Substitution Effect ◽  
Board Independence ◽  
External Audit ◽  
The Board Of Directors ◽  
Negative Effect ◽  
The Impact ◽  
Empirical Analyses

This research aims to test the impact of the interaction between the external audit reputation and the characteristics of the board of directors on the firm performance. Hence, we have tried to test the hypothesis of Williamson (1983) in the Tunisian context.The results obtained in the empirical analyses show a significantly negative effect of the interaction between the external audit reputation and the board independence of the financial performance of the firm. This result reveals the substitution effect between these two mechanisms.

scholarly journals Analisis Pengaruh Fundamental Makro dan Fundamental Mikro Terhadap Struktur Kepemilikan, Kinerja Keuangan, dan Nilai Perusahaan pada Badan Usaha Milik Negara yang Terdaftar di Bursa Efek Indonesia

2019 ◽  
Vol 4 (1) ◽  
pp. 65-72
Author(s):  
Hwihanus Hwihanus ◽  
Tri Ratnawati ◽  
Indrawati Yuhertiana
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Partial Least Square ◽  
Least Square ◽  
Test Results ◽  
Company Value ◽  
Inner Model ◽  
The Relationship

This study aims to examine and analyze the relationship between the variability of mu- tuality micro fundamental, macro fundamentals of ownership structure, financial performance, and the value of companies in State-Owned Enterprises listed on the Indonesia Stock Exchange. Re- search population at 20 State-Owned Enterprises listed on Indonesia Stock Exchange. This research method uses purposive sampling with 12 companies in 2010–2015. Data analysis of techniques in this study using Partial Least Square consists of Inner model, Outers model and Weight relation. The test results showed that all hypothesis testing was accepted which showed significant effect with 5% level with t-table 1,960 and rejected macro fundamentals to firm value with t-statistic 0,666262 (H5) and micro fundamentals of company value with t-statistic 1,188469 (H6) and ownership structure on the financial performance of the company with t-statistics 0.953625 (H7).

scholarly journals Corporate Governance, Institutional Ownership, and Their Effects on Financial Performance

2016 ◽  
Vol 12 (25) ◽  
pp. 46
Author(s):  
Kristal Hykaj
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Financial Performance ◽  
Board Of Directors ◽  
Institutional Ownership ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Investment Trusts ◽  
The Board Of Directors ◽  
The Relationship

This paper studies the 105 U.S. Equity Real Estate Investment Trusts for the period of 2007-2012, and explores the relationship between corporate governance, institutional ownership, and financial performance. The results are conclusive and show that the presence of women on the board of directors as well as the choice to opt for a classified board enhances the returns on assets and returns on equity. The second finding of this paper is that the percentage of stocks owned by the top 10 institutions, between the levels of 30% and 50%, are associated with higher returns on assets and returns on equity.

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