Adoption of Accounting Information Systems on Firm Performance and the Moderating Role of Good Corporate Governance

This research is motivated by several external factors affecting the palm oil industry, including the COVID-19 pandemic, the decline in Crude Palm Oil (CPO) prices, cooking oil scarcity, and the government's CPO export ban policy, all of which have impacted the economic and operational performance of palm oil companies. This study focuses on analyzing the influence of Inventory Turnover (ITO) and Sales Growth (SG) on profitability, measured by Return on Assets (ROA), in palm oil companies listed on the Indonesia Stock Exchange during the 2019-2023 period. Furthermore, this study explores the moderating role of Good Corporate Governance (GCG), measured through the board of directors and the board of commissioners, in the relationship between the independent and dependent variables. The research employs a quantitative method with panel data regression analysis. A sample of 16 companies was selected using purposive sampling, with data sourced from financial statements and other secondary sources. Data processing was conducted using EViews 13 software. The results indicate that ITO negatively and significantly affects ROA, likely due to price volatility and market conditions. Conversely, SG demonstrates a positive and significant influence on ROA, suggesting that increased sales positively impact company profits. GCG significantly moderates the relationship between ITO and ROA, but does not significantly moderate the relationship between SG and ROA. These findings highlight the importance of applying good corporate governance principles, especially when facing uncertain economic conditions.

The Integrity of financial reports is defined as the extent to which the financial statements presented show true and honest information. Two things become the primary qualities in financial reports, namely relevance, and reliability. This study aims to empirically determine the role of good corporate governance and financial performance on the Integrity of financial statements. The variables used in corporate governance are institutional ownership, managerial ownership, and independent commissioners. Financial performance using company size and leverage. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange in 2018-2021. The samples in this study were 16 property and real estate companies determined based on the purposive sampling method. The analytical tool used to test the hypothesis is multiple linear regression. The results of this study indicate that institutional ownership, managerial ownership, and firm size harm the Integrity of financial statements. The amount of institutional and managerial ownership does not make financial reports more relevant and reliable. The presence of an independent commissioner positively affects the Integrity of financial reports, and it can be considered as overseeing the process of making financial reports. While leverage does not affect the Integrity of financial statements, the low level of corporate debt cannot guarantee that financial statements are presented with high Integrity. Future research can develop this research by observing the effectiveness of the company's internal audit team. The internal audit team has an important role in the Integrity of the entity's financial statements.

This research aims to analyze the disclosure of social responsibility as an effort to communicate the quality of corporate governance to the public to enhance financial performance. The phenomenon of information asymmetry that always exists in the publication of financial statements proves the need for companies to engage in activities that communicate the quality of management governance to the public. With good communication, public trust will be built, and financial performance will improve. An empirical study was conducted on cigarette companies listed on the Indonesia Stock Exchange from 2020 to 2022. The type of research is quantitative, with data obtained by analyzing financial ratios as reported by companies on the Indonesia Stock Exchange and analyzed using the Moderated Regression Analysis technique. The research variables consist of Return on Assets as the dependent variable, Good Corporate Governance as the independent variable, and Corporate Social Responsibility as the moderating variable. Several variables measuring Good Corporate Governance, such as Managerial Ownership, Institutional Ownership, and Independent Commissioners, were found to have a partial effect on Return on Assets, while the Board of Directors and Audit Committee did not have a partial effect on Return on Assets. The analysis results prove that Corporate Social Responsibility can enhance the role of good corporate governance in influencing financial performance. This research is beneficial both theoretically and practically. Theoretically, the research results complement the literature on the determinants of financial performance, while practically, they are useful for company leaders in determining strategies to improve financial performance.Managerial Ownership

The fundamental cause of financial markets meltdown in the global economy is the persistent deterioration of corporate governance regulation that results to poor financial reporting quality. The continuous business failures occasioned by irresponsible corporate governance and low financial reporting quality undoubtedly has triggered a serious threat to the Nigerian economy. The perceived high profile-financial scandals have become a major source of concern, and “galvanized considerable interest in and discussion” on the imperative of “corporate governance in the financial reporting process.” Besides the shareholders prospect being damned, the confidence of other stakeholders is lost on the pages of window-dressed financial reports of the entity. The Sarbanes-Oxley Act of 2002 was passed by the U.S. congress in response to preventing the reoccurrence of financial scandals; “to reinforce corporate accountability and professional responsibilities, and to rebuild investor confidence.”Also to this direction, is the introduction of Code of Corporate Governance for Public Companies in Nigeria by Securities and Exchange Commission (SEC) 2011 and Financial Reporting Council of Nigeria Act of 2011, enacted to harmonize activities of relevant professional and regulatory bodies with regard to ensuring effective corporate governance and credible financial reporting. It is therefore pertinent to guard against the possible causes of sudden corporate failure particularly in Nigeria. While “taking Nigeria’s peculiar institutional configurations into consideration”, aims at critically evaluating the Nigerian corporate governance nature, roles and structure in designing financial information system and to explore how the corporate governance functions can be strategically harnessed to ensuring corporate vitality and prevent manipulations in financial reporting. This paper is purported to “prioritize the long-term health of firms and their shareholders” and to create more long-term stability and profitability within the corporations that are so vital to the health, well-being, and prosperity of the global economy. This study thus, tends to investigate the relationship between corporate governance and financial reporting quality towards restoring the public confidence that can help in creating long term corporate value. The study builds upon legal, regulatory and theoretical framework of corporate governance and financial reporting, analyzing the roles of those charged with governance and how they affect the financial reporting system of the entity. The paper dwells more on corporate governance because it believes that the quality of financial reporting depends largely on the quality of corporate governance of the firm. In the course, four research questions are raised: Does the quality of corporate governance affect the financial reporting quality? Does any relationship exist between corporate governance and audit fees for quality assurance on financial statements? Do the corporate governance codes and regulations matter in ensuring responsible corporate governance and credible financial reporting? Is there any correlation between corporate reputation and quality of financial reporting of the company? Using descriptive and historical study approach, the findings support previous studies which show that financial reporting quality can be strengthened and improved in the face of effective corporate governance. The study also observes that by providing the regulatory documents and ample of governance codes do not connote sound corporate governance and quality financial reporting. This is because corporate governance begins and ends in Boardroom. Also, companies with corporate reputational concern tend to have high drive for good corporate governance which construes in having quality financial reporting. While concludes that a wake-up call for Financial Reporting Council of Nigeria will help to promote credible financial reporting, the paper recommends among others the need to ensure elaborate, comprehensive and simple financial statements content; legislative provision for easy and timely accessibility of financial records to all responsible stakeholders.

This paper argues that the structure of corporate ownership varies systematically in ways that are consistent with value maximization. Among the variables that are empirically significant in explaining the variation in ownership structure for 511 U.S. corporations are firm size, instability of profit rate, whether or not the firm is a regulated utility or financial institution, and whether or not the firm is in the mass media or sports industry. Doubt is cast on the Berle-Means thesis, as no significant relationship is found between ownership concentration and accounting profit rates for this set of firms.

High credit risk poses a significant threat to banks, underscoring the necessity to examine the effectiveness of good corporate governance in mitigating such risks. This study aims to assess the impact of credit risk, represented by non-performing loans (NPLs), on market discipline, reflected through deposit growth, and the moderating role of good corporate governance, focusing on board size and institutional ownership, in this dynamic. Data for the study were sourced from the financial reports of banking companies on their official websites, IDN Financial, and the Indonesia Stock Exchange. The study used a purposive sampling method to analyze a sample comprising 30 banking companies and yielded 300 observations. The research methodology involved dynamic panel regression analysis using the Generalized Method of Moments (GMM) technique. The findings reveal that non-performing loans negatively impact deposit growth. However, it was also found that board size and institutional ownership could positively moderate the adverse effects of non-performing loans on deposit growth. This suggests that market discipline, manifesting as a reduction in deposits and an escalation in credit risk within the Indonesian banking sector, can be effectively managed and mitigated through the strategic implementation of good corporate governance practices, particularly by optimizing board size and enhancing institutional ownership. These mechanisms enable more robust market discipline, contributing to better credit risk management and promoting healthier deposit growth.

Profitability assessment in agricultural financial institutions is sometimes less noticed by scientists, resulting in limited theoretical and empirical evidence in explaining the performance of financial institutions that focus on financing agricultural and agribusiness development. Meanwhile, the farm sector in several countries contributes significantly to creating macroeconomic growth. This study aims to present empirical evidence on the role of good corporate governance on the profitability of agricultural financing institutions and present important points in formulating a roadmap for future research that is useful in developing new theories. This study uses a systematic literature review approach from current journals. The journal search used the question keywords "Corporate Governance, Financial Performance, Agriculture", so 25 main journals were obtained that were indexed in international databases, and supported by 39 other journals to help explain the research findings. Based on the results of the analysis, it is known that research on corporate governance and financial performance in agricultural development was conducted in the period 2017-2024, with the largest number in 2021. The majority of researchers concluded that good corporate governance has been shown to have a positive impact on financial performance and profitability. This means that the development and sustainability of agricultural sector businesses must begin with strengthening corporate governance. The analysis results also found that the assessment of corporate governance and profitability against the macro economy has not been carried out, so the explanation and empirical evidence in agricultural development are very limited. Suppose there is a finding that GCG significantly impacts profitability, and another finding gives an insignificant negative effect. This agenda is certainly a roadmap for the future to conduct a more in-depth study, it will be very strong to analyze together the role of good corporate governance, macro economy, financial literacy, and profitability. The practical implication is that to improve financial performance in agricultural sector companies, GCG must be enhanced by determining the ideal proportion of management composition (board of directors and audit committee) and mitigating early on the potential for conflicts of interest or tensions between managers.

Corporate Governance and Firm Performance in Kuwait

Mediating Effects of Accounting Conservatism on The Relationship Between Corporate Governance and Cost of Capital

The purpose of this study is to obtain empirical evidence of the influence of profitability (Return On Assets and Return On Equity), BOPO, Credit Risk (NPL ratio) and the role of Good Corporate Governance as a moderating variable on the Value of Banking Companies listed on the Indonesia Stock Exchange. The sampling technique used purposive sampling, the research samples obtained totaled 13 companies with a research period from 2017-2021 so that there were 65 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is multiple linear regression analysis method with interaction test. The results showed that ROA has a significant positive effect, ROE has a significant negative effect on firm value. Meanwhile, BOPO, NPL and GCG have no effect on company value. GCG as a moderating variable moderates ROE on firm value however, it cannot moderate the effect of ROA, BOPO and NPL. The implication of this research is that companies must pay attention to profitability and those that can affect stock prices so that company value can increase.

Purpose: The research examines the influence of political connections and gender diversification on firm performance, with good corporate governance as a moderating variable. The research focuses on infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2022 period. Method: The research method used is Structural Equation Modeling - Partial Least Square (SEM-PLS) using WarpPLS Version 7.0 software. The population for this study is infrastructure sector companies listed on the Indonesia Stock Exchange in 2019-2022. This research used a non-probability purposive sampling technique, resulting in a total sample of 35 companies. Findings: The research results show that political connections do not affect firm performance. However, political connections on firm performance have a significant influence when moderated by good corporate governance. Gender diversification does not influence firm performance and good corporate governance cannot moderate the influence of gender diversification on firm performance. Novelty: Unlike prior research which focuses on sectors like banking and manufacturing, this study targets the infrastructure sector—strategic, politically linked, and historically male-dominated—making the discussion on gender diversity particularly relevant. The finding that GCG selectively moderates only political connections offers a novel contribution to existing literature.

This study investigates the influence of tax havens and foreign ownership on transfer pricing decisions, with a focus on the moderating role of good corporate governance. The research sample consists of manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange (IDX) during the 2019–2022 period. The purposive sampling method was employed, resulting in a sample size of 27 companies, or 108 observations. Data analysis was conducted using Moderated Regression Analysis (MRA). The findings reveal that both tax havens and foreign ownership positively influence transfer pricing decisions. Additionally, good corporate governance moderates the relationship between tax havens and transfer pricing decisions, but it does not moderate the relationship between foreign ownership and transfer pricing decisions. This study contributes to the academic discourse on international tax policies and transfer pricing regulations. It also advances contemporary management accounting theory by providing insights into the interplay between tax strategies, ownership structures, and corporate governance mechanisms in influencing transfer pricing decisions.

The purpose of this study is to examine the role of corporate governance in mediating the relationship between capital structure and financial performance. Research related to corporate governance has been widely studied. However, this research focus at corporate governance as an independent variable that affects financial performance. The aspect of corporate governance acting as a mediator has not been explored much. Another novelty of this research is that it is mostly done in the private sector. Researchers want to investigate the role of corporate governance in mediating in the public sector in government-owned hospitals. The hospital is considered important because it is the spearhead of services in the era of the COVID-19 pandemic. An anomaly occurred during a pandemic because the hospital's burden increased in handling COVID-19 patients for COVID-19 referral hospitals. The surge in the number of patients in the hospital resulted in disrupted cash flow.The initial step of this research was to collect data related to the research variable, namely the financial reports of hospitals in Indonesia with A accreditation status. Testing was then carried out using partial least squares (PLS) to see the role of GCG in mediating.

The conflict of interest between managers (agents) and the owner (principals) occurs all the time, although the level of the conflict is not always similar. This is because there are separation roles or a difference of interests. In many Indonesian banks, the implementation of Good Corporate Governance (GCG) is mandatory. But, in manufacturing companies in Indonesia, GCG is still not a must. So, what is the role of GCG in conjunction with firm value in manufacturing companies? In addition, many manufacturing companies use earnings management as a benchmark of firm value. It is clear that earnings management can be placed as an antecedent of firm value. The purpose of this research is to analyze the determinants of firm value in relation to earnings management and the mechanism of GCG as a moderating variable. The GCG is not viewed as an antecedent variable. The research sample is 46 companies in the entire industry of consumer goods of manufacturing companies in the Indonesia Stock Exchange. By specific considerations, the number of the sample is reduced to 39 out of 46 companies. The method used is a moderated regression analysis (MRA). The results show that the earnings management and the mechanism of GCG have an impact on the firm value. The dimension of GCG, namely, independent commissioner, managerial ownership, and audit quality can be placed as moderating variables and as determinants of firm value. In order to increase the firm value, it is advisable that this industry should strictly apply the mechanism of GCG as mandatory. However, the issue of GCG as an independent or moderating variable still remains debatable.

This research aimed to determine the effect of corporate governance and firm performance on stock prices. It was shown by Corporate Governance Perception Index (CGPI), Return on Assets (ROA), Total Asset Turnover (TATO), and firm size (SIZE) in the Indonesia Stock Exchange (IDX). Data sample used in this research was company listed on IDX during 2009-2012 and participated in CGPI of that period. Financial statement data and stock prices could be obtained from the IDX website and CGPI data were from the Indonesian Institute for Corporate Governance. Hypothesis test used in this research was a multiple linear regression analysis. As a result, the application of corporate governance and ROA give positive but insignificant effect on stock prices. Meanwhile, TATO and SIZE have a positive and significant effect on stock prices. Both variables of corporate governance and firm performance influence stock prices significantly.