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.

The influence of capital structure on firm profitability in USA and Bangladesh engineering industry

2021 ◽  
pp. 2150029
Author(s):  
Abdelkader Derbali
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Positive Influence ◽  
Engineering Industry ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Real Picture ◽  
The Impact

The aim of this paper is not only to determine and compare the nature of capital structure but also its effect on company performance of engineering industry of USA and Bangladesh. We utilize a panel data methodology based on a sample of 34 listed engineering companies of Bangladesh on Dhaka Stock Exchange (DSE) and a mixture of 34 (small, medium and large) engineering companies listed in NASDAQ in USA during the period of study from 2012 to 2019. Our empirical results indicate that the capital structure of engineering industry of USA and that of Bangladesh is different. Also, we demonstrate that capital structure has negative effect on company profitability of engineering industry of USA. Capital structure presents a negative effect on Earning per Share and Return on Assets (ROA) and positive influence on Return on Equity (ROE) and Tobin’s Q of engineering industry of Bangladesh. We conclude that the impact of capital structure on company’s profitability by only one sector and then compare the findings to know the real picture of the link. Investors, auditors, analysts and practitioners should consider many factors to examine the banking performance. Our results from this study may relate to Asian countries with similarities in engineering industry to that in Bangladesh.

scholarly journals Pengaruh Komponen Risk Based Bank Rating Pada Nilai Perusahaan Perbankan

2019 ◽  
Vol 29 (2) ◽  
pp. 883
Author(s):  
Ketut Krisna Savitri ◽  
I Wayan Ramantha
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Capital Adequacy Ratio ◽  
Negative Effect

This study aims to empirically examine the effect of the risk-based bank rating component as measured by non-performing loans, loan to deposit ratio, good corporate governance, return on assets and capital adequacy ratio on the value of banking companies listed on the Indonesia Stock Exchange (BEI) Year 2013-2017. The research sample was selected using the nonprobability sampling method with a purposive sampling technique and obtained as many as 6 banking companies, so that the number of observations with a study period of 5 years was 30 observations. The data analysis technique used is multiple linear regression analysis. The results of this study indicate that non-performing loans and loan to deposit ratios have a negative effect on the value of banking companies. Return on assets and capital adequacy ratio have a positive effect on the value of banking companies and good corporate governance does not affect the value of banking companies. Keywords : Risk Based Bank Rating;  Company Value; Banking.

scholarly journals PENGARUH FINANCIAL SLACK TERHADAP KINERJA PERUSAHAAN STUDI PADA PERUSAHAAN-PERUSAHAAN MANUFAKTUR YANG TELAH GO PUBLIC DI BURSA EFEK INDONESIA

2015 ◽  
pp. 1-11
Author(s):  
Donalson Silalahi
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Company Performance ◽  
Corporate Leaders ◽  
Financial Slack ◽  
Good Corporate Governance ◽  
Negative Effect

The relationship between financial slack with the company's performance is not clear. Therefore, this issue more interesting to study. Financial slack can be grouped into two types: available slack and potential slack. Therefore, this study is intended to clarify the effect of available slack and potential slack to company performance. To achieve this aim, used a linear regression equation. The study focused on companies listed on Indonesia Stock Exchange by using purposive sampling technique in sampling research so that the sample size were 112 companies. The data used in this research is secondary data with observations in the period 2008-2010. To explain the effect of financial slack on the performance of companies used the t and F test with α by 10 percent. Based on the analysis and discussion, some conclusions as follows: Firstly, available slack and potential slack have significant negative effect on the performance of the company. Second, the greater the slack of the company, there is a tendency that corporate leaders will tend to use the slack to fulfill its interests. Based on the above conclusions, some suggestions as follows: Firstly, if the company's performance would be improved, financial slack needs to be lowered to a level that is needed. Second, the results of this study can be used as a basis for regulators to make regulations to improve the quality of corporate governance of the corporation. Third, further research is needed by differentiating the sample of companies over companies that implement good corporate governance and corporate governance is not good.

Corporate Governance : Demografi Organisasi, Karakteristik Dewan Dan Kinerja Pada Perusahaan Yang Termasuk LQ 45 Di Bursa Efek Indoenesia

2017 ◽  
Vol 25 (1) ◽  
pp. 40-59
Author(s):  
Muda Setia
Keyword(s):  
Corporate Governance ◽  
Significant Influence ◽  
Stock Exchange ◽  
Positive Influence ◽  
Regression Equation ◽  
Company Performance ◽  
Market Capitalization ◽  
Accounting Performance ◽  
Good Corporate Governance ◽  
The Board Of Directors

The dimensions of good corporate governance can certainly affect the condition of the company, including LQ 45 Company. The LQ 45index is the value of the market capitalization of 45most liquid stocks and has a large capitalization value which is theliquidationindicator. LQ 45 index uses 45 selected stocks based on stock trade liquidity and adjusted every six months (every early February and August). LQ 45 index only consists of 45 selected stocks of various selection criteria, so it will be consisting of stocks with high liquidity and market capitalization. Thus, it is understandable that companies included in LQ45 areones with a good performance. However, theinfluence of good corporate governance implementation is not yet known through the demographic organization and characteristics of the board toward the company performance. Therefore, it is necessary to conduct further research related to good corporate governance in LQ 45 companies in the aspect of organization demography and the board’scharacteristics. This research was conducted to determine the relationship between organization demography and the characteristics of the board of directors toward the accounting performance (ROA and ROE) in LQ 45. Statistical analysis in this study is conducted by multiple linear regressions. The regression equation in this study is formulated into a model equation, as in the hypotheses and research framework model. In this study, 2 testing of multiple regression analysis were conducted. The regression equation for the first test is as follows. The results showed that: (1) there is a significant effect of organization demographyto the characteristics of the board, (2) there is a significant influence of the characteristics of the board on the performance of accounting, (3) there is no significant influence of the age of the organization to the characteristics of the board, (4 ) there is a significant positive influence of the size of the organization on the characteristics of the board, (5) there is no significant influence of the length of time the organization is listed on the Stock Exchange (BEI)to the characteristics of the board, (6) there is a significant positive influenceof the size of the board to the accountingperformance, (7) There is no significant influence of the CEO duality to the accountingperformance, (8) there is no significant influence of the independence of the CEO on the accountingperformance, (9) there is no significant influence of gender on the accounting performance.

scholarly journals Pengaruh Kepemilikan Manajerial, Dewan Komisaris Dan Komite Audit Terhadap Kinerja Prusahaan Sektor Pertambangan Di Bursa Efek Indonesia

2021 ◽  
Vol 16 (1) ◽  
pp. 29-40
Author(s):  
Ariful Fikri ◽  
Mukhlizul Hamdi
Keyword(s):  
Corporate Governance ◽  
Hypothesis Testing ◽  
Coal Mining ◽  
Audit Committee ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Company Performance ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Impact

This study aims to determine the impact of managerial ownerships, board of commissioners and audit committee on the achievement of mining sector companies in the Indonesia Stock Exchange. The sample used is the mining sub-sector company. Data used from 2015 to 2019. The hypothesis testing process is carried out with multiple regression partial testing. The results of testing the first hypothesis found that managerial ownership had no significant effect on company performance, while the board of commissioners and audit committee had a significant effect on the performance of the coal mining sub-sector companies on the Indonesia Stock Exchange.   Keywords: Return on Assets, Good Corporate Governance & Mining Sub Sector

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

scholarly journals Model Hubungan Peningkatan Kualitas Nilai Perusahaan Melalui Corporate Governance, Gender Direktur, Reputasi Audit Pada Perbankan Konvensional dan Perbankan Syariah di Indonesia Tahun 2013-2018

2020 ◽  
Vol 4 (1) ◽  
pp. 263-273
Author(s):  
Suharti Suharti ◽  
Anton Anton ◽  
Irawati Irawati
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Quality ◽  
Stock Exchange ◽  
Board Members ◽  
Company Performance ◽  
Significant Positive Effect ◽  
Important Indicator ◽  
Negative Effect ◽  
Positive Effect

One important indicator factor for assessing the company's future prospects is to see the extent to which the company's profitability has grown. The purpose of this study was to determine the Relationship between Improving the Quality of Company Value through Corporate Governance, Gender Director, Audit Reputation in Conventional Banking and Islamic Banking in Indonesia 2013-2018. This research was conducted in listed companies that are members of the financial sector (Conventional and Sharia Banking) which are listed on the Indonesia Stock Exchange from 2013 to 2018 from 31 banking companies listed on the Indonesian stock exchange from a period of 6 years from 2013 to 2018. Methods used is purposive sampling, namely the technique of determining the sample with certain considerations. While the data analysis method using SEM and AMOS. The results of this study indicate that the Independent Board (Independent Board) does not have a significant positive effect on company performance and firm value (2) Gender Director (Female directorship) does not have a significant negative effect on company performance and firm value (3) Board Members (Managerial Board) ) has a significant positive effect on company performance; but Board Members (Managerial Board) do not have a significant positive effect on firm value. (4) Audit Reputation does not have a positive significant effect on company performance and firm value. Keywords: Audit Quality, Professional Accuracy, Competence, Ethics of Internal Auditors

scholarly journals Analisis Tingkat Kesehatan Bank Dengan Menggunakan Metode Risk-Based Bank Rating (RBBR) (Studi Pada Bank yang Termasuk Saham LQ45 Sub Sektor Perbankan Tahun 2010–2016)

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Bobby Wijaya
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Risk Profile ◽  
Capital Adequacy ◽  
Self Assessment ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Health Level ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio

This paper seeks to find out the health level of banks in Indonesia Stock Exchange LQ45 Index. It used descriptive methods with qualitative approach that is Risk Based Bank Rating (RBBR) model. RBBR model consists of 4 factors among others: risk profile, good corporate governance (GCG), earnings and capital factor.The analytical tool used in this study is the assessment of the level of health of banks in Indonesia Stock Exchange LQ45 Index against the risk factor using the ratio of net performing loans (NPLs) and Loan to Deposit Ratio (LDR), a factor of corporate governance by using the self-assessment report of good corporate governance, the earnings factor using the ratio of return on assets (ROA) and net interest margin (NIM) and the factor of capital using the ratio of capital adequacy ratio (CAR). The results showed that there are several banks which have "Less Healthy", "Healthy Enough", "Pretty Good". Bank Mandiri, BRI and BNI received the predicate of "Pretty Good" in risk profile factor for liquidity risk, whereas Bank BTN received the predicate of "Healthy Enough". Also, Bank BTN received the predicate of "Healthy Enough" and "Pretty Good" in earnings factor specifically ROA and GCG factor. Keywords:Indonesia Stock Exchange LQ45 Index, Health Level of Banks, Risk Based Bank Rating (RBBR) Model.

scholarly journals Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value

2019 ◽  
Vol 4 (1) ◽  
pp. 18-34 ◽  
Author(s):  
Suhadak Suhadak ◽  
Kurniaty Kurniaty ◽  
Siti Ragil Handayani ◽  
Sri Mangesti Rahayu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Complete Information ◽  
Company Performance ◽  
Corporate Value ◽  
Content Type ◽  
Good Corporate Governance

Purpose The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial performance on the influence of GCG on corporate value. Design/methodology/approach This study was an explanatory study. The unit of analysis was the companies listed in LQ45 in Indonesian Stock Exchange and the sources of data were ICMD, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies listed in LQ45 in Indonesian Stock Exchange between 2010 and 2016. Findings The higher GCG, independent commissioners proportion, institutional managerial and public ownerships resulted in higher corporate value. MBE and PER stock return is a moderating variable in the influence of GCG on corporate value. Financial performance is moderating variable in the influence of GCG on corporate value. Originality/value Based on the previous studies, it may be concluded that there is a gap between the influence of GCG on corporate value and the influence of stock return on financial performance, and moderating variable is needed to evaluate the influence of GCG on company performance, more particularly stock return and financial performance. This discrepancy creates opportunity for conducting an in-depth study on those variables. Its novelty is correlation between stock return and financial performance as moderation. Previous studies used these as mediating variables. This study is going to generate different finding as it is conducted in different setting (country where this study is conducted), type of industry, research period and using different method of analysis.

Product market competition, state-ownership, corporate governance and firm performance

2018 ◽  
Vol 26 (1) ◽  
pp. 62-83 ◽  
Author(s):  
Li Liu ◽  
Wen Qu ◽  
Janto Haman
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Market Competition ◽  
State Ownership ◽  
Product Market Competition ◽  
Content Type ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Negative Effect

Purpose The purpose of this paper is to examine the association between firm performance and product market competition (PMC), and then examine the mitigation effect of corporate governance and/or state-ownership (SOEs) in the association between PMC and firm performance using Chinese listed firms. Design/methodology/approach The authors consider three determinants of the PMC that affect the nature of competition, and use market concentration, product substitutability and market size as proxies for PMC. The authors construct a corporate governance index which measures the extent of board independence, monitoring strength of supervisory board over board of directors, and monitoring strength of board of directors over CEO. The authors use Tobin’s Q as a proxy for firm performance. The authors use a sample of 20,706 firm-year observations listed on the Chinese stock market between 2001 and 2016 to empirically investigate the research questions proposed in the paper. Findings The authors find that higher PMC is associated with lower firm performance. The authors find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms controlled by SOEs compared to non-SOEs. Further, the moderation effect of SOEs on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices compared to firms with weak corporate governance practices. Originality/value Extant studies investigating the relationship between PMC and corporate governance suggest an either complementary or substitution relationship in developed economies. Our study highlights the interactive role played by SOEs and good corporate governance practices in firm performance in highly competitive product markets in an emerging economy. The findings provide insightful information to regulators of other emerging countries that SOEs with good corporate governance practices can play an important role in the economy by mitigating the negative effect of higher PMC on firm performance.

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