THE EFFECT OF CORPORATE GOVERNANCE QUALITY, LEVERAGE AND OWNERSHIP STRUCTURE ON FIRM PERFORMANCE
Article Sidebar
Read Counter : 25
Download : 10
Main Article Content
Abstract
This research was done to collect empirical evidence concerning the effect of corporate governance quality or CGQ (Board Size & Board Independence), leverage (DER) and also ownership structure (OS) on firm performance (ROA) of financial sector companies listed on IDX or the Indonesia Stock Exchange for the 2021-2023 period. 153 data from 51 financial sector companies are valid sample data in this research. EViews 12 was used to process the data in this research. This research adopts a quantitative descriptive research approach with panel data regression to comprehensively investigate 51 financial sector companies listed on the Indonesia Stock Exchange (IDX) between 2021 and 2023. Applying non-probability purposive sampling, the study combines cross-sector and time-series data to comprehensively examine how various factors influence performance over time. The results showed that board size had a significant effect on firm performance, while board independence did not have a significant effect on firm performance. Leverage was shown to have a significant effect on firm performance. However, ownership structure did not show a significant effect on firm performance. These findings provide insight for company managers in improving the quality of corporate governance and leverage management to support better firm performance in the financial sector.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
Otoritas Jasa Keuangan. (2021, Agustus 26). Sektor jasa keuangan stabil dan tumbuh positif, perbankan kucurkan kredit Rp1.439 triliun sampai Juli 2021. Otoritas Jasa Keuangan. https://www.ojk.go.id
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2017). Corporate finance (12th ed.). McGraw-Hill Education.
Salim, S., Lioe, J., Harianto, S., & Adelina, Y. E. (2022). The Impact of Corporate Governance Quality on Principal-Agent and Principal-Principal Conflict in Indonesia. Jurnal Akuntansi dan Keuangan, 24(2), 91-105. http://dx.doi.org/10.9744/jak.24.2.91-105
Puspita, D. A., & Hartono, U. (2018). Pengaruh Perputaran Modal Kerja, Ukuran Perusahaan, Leverage, dan Likuiditas Terhadap Profitabilitas Perusahaan Animal Feed di BEI Periode 2012-2015. Jurnal Ilmu Manajemen, 6(1), 1-8.
Fachrezi, F. A., & Hakim, M. Z. (2021). Analisis Pengaruh Likuiditas, Leverage, dan Ukuran Perusahaan Terhadap Profitabilitas Perusahaan Infrastruktur, Utilitas, dan Transportasi yang Terdaftar di Bursa Efek Indonesia Periode 2018-2020. Seminar Nasional Akuntansi dan Manajemen (SNAM), 2(1), 1-19.
Rashid, M.M. (2020). “Ownership structure and firm performance: the mediating role of board characteristics”. Corporate Governance, 20(4), 719-737. https://doi.org/10.1108/CG-02-2019-0056
Ghozali, I. (2020). 25 Grand Theory, 25 Theory Besar Ilmu Manajemen, Akuntansi Dan Bisnis. Semarang: Yoga Pratama.
Arora, A., & Bodhanwala, S. (2018). Relationship between Corporate Governance Index and Firm Performance: Indian Evidence. Global Business Review, 19(3), 1-15. https://doi.org/10.1177/0972150917713812
Weli, W, & Pambudi, R. (2023). Corporate Governance Quality and Company Performance, Australasian Accounting, Business and Finance Journal, 17(2), 2023, 61-74. http://dx.doi.org/10.14453/aabfj.v17i2.05
Ajili, H., & Bouri, A. (2018). Corporate governance quality of Islamic banks :measurement and effect on financial performance. 11(3), 470-487. https://doi.org/10.1108/IMEFM-05-2017-0131
Fibriyanti, Y. V., Syafik, M., & Lailia, F. K. (2022). The influence of corporate governance, leverage, company size on financial performance. Journal of Humanities and Social Studies, 6(3), 345-348. https://doi.org/10.33751/jhss.v6i3.6490
Ernawati & Santoso, B. (2021). Pengaruh ukuran perusahaan, kepemilikan institusional, komisaris independen dan leverage terhadap kinerja keuangan. Jurnal Ilmiah Akuntansi, 19(2), 231-246. http://dx.doi.org/10.30595/kompartemen.v19i2.13246
Kao, M.-F., Hodgkinson, L. and Jaafar, A. (2019), "Ownership structure, board of directors and firm performance: evidence from Taiwan", Corporate Governance, Vol. 19 No. 1, pp. 189-216. https://doi.org/10.1108/CG-04-2018-0144
Rasyid, R., & Linda, M. R. (2019). Ownership Structure, Capital Structure and Firm Performance: A Case in Indonesia. Advances in Economics, Business and Management Research, 97, 766-776. https://doi.org/10.2991/piceeba-19.2019.84