Good Corporate Governance Mechanism Research Articles

Analysis of the Effect of Good Corporate Governance Mechanisms and Financial Performance on the Disclosure of Sustainability Reports with Firm Size as a Moderating Variable in Banking Companies Listed on the Indonesia Stock Exchange 2017-2022

The purpose of this study was to test and analyze the effect of Good Corporate Governance (GCG) and others: managerial ownership, number of Board of Commissioners and Audit Committee, and Financial Performance, which included ROA and ROE on company sustainability in banking sub-sector companies listed on the Indonesia Stock Exchange. In addition, this study also aims to determine whether the firm size can be used as a moderation variable to strengthen or weaken the relationship between good corporate governance (GCG) and the financial performance of the company's sustainability. This research is a type of quantitative research with a descriptive approach. Purposive sampling techniques were used from 47 banking companies in the IDX, and 19 banks were included in the research sample within 6 years of the period. The data used are secondary data and data collection methods, accessed by accessing the IDX's 2017-2022 annual report. The results of this study show that good corporate governance (GCG) has no significant effect on sustainability. The audit committee has no significant effect on sustainability reports. Managerial ownership has a significant effect on sustainability reports, independent commissioners have no significant effect on sustainability reports, the Board of directors has no significant effect on sustainability reports, and financial performance has a significant effect on sustainability reports, where ROA and ROE have a significant effect on sustainability reports. Firm size can moderate the influence of GCG and financial performance with sustainability reports. Keywords: good corporate governance, audit committee, board of commissioners, managerial ownership, financial performance, ROA, ROE, sustainability report, and firm size

Pengaruh Mekanisme Good Corporate Governance terhadap Audit Delay dengan Ukuran Perusahaan Sebagai Variabel Moderasi

Good Corporate Governance is the principles that direct and control the company to achieve a balance between power, responsibility, and supervision in carrying out business activities. In the context of auditing, the implementation of the Good Corporate Governance mechanism is believed to affect the speed of completion of the audit report. This study aims to examine the effect of good corporate governance mechanisms on audit delay with firm size as a moderating variable in property and real estate sector companies listed on the Stock Exchange in 2020-2022. The population of this study are property and real estate sector companies listed on the Stock Exchange from 2020-2022. The sampling technique in this study was to use purposive sampling technique with a total sample size of 26 companies. The data analysis method used is using and SEM-based Partial Least Square version 4.1.0.6. The results showed that the mechanism of good corporate governance has a significant and positive effect on audit delay. And firm size as a moderating variable has no effect on weakening or strengthening the relationship between Good Corporate Governance Mechanisms on Audit Delay.

The Influence of Good Corporate Governance Mechanism and Audit Quality on the Level of Accounting Conservatism

The objective of this study is to determine whether Managerial Ownership, an Independent Board of Commissioners, a Board of Directors, an Audit Committee, and Audit Quality influence Accounting Conservatism in Manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2022. The sampling technique was purposive sampling of 37 companies that satisfied the criteria. The technique employs panel data regression analysis with the Eviews 12 software. The outcomes of the study show that partial managerial ownership and the board of directors have an impact on accounting conservatism. Meanwhile, the independent board of commissioners, audit committee, and audit quality all demonstrate that they have little impact on accounting conservatism. Simultaneously, the research findings reveal that managerial ownership, an independent board of commissioners, a board of directors, an audit committee, and audit quality all have an impact on accounting conservatism.

The Effect of Good Corporate Governance Mechanism on Company Financial Performance with Company Size As a Moderating Variable

The Effect of Good Corporate Governance Mechanism on Company Financial Performance with Company Size As a Moderating Variable

The Influence of Good Corporate Governance Mechanisms, Leverage, and Company Size on the Audit Quality of Banking Companies Listed on the Indonesian Stock Exchange in 2021-2022

A This research aims to determine the influence of good corporate governance mechanisms, leverage, and company size on the audit quality of banking companies listed on the Indonesia Stock Exchange (BEI) in 2021-2022. Data collection techniques using literature study and documentation. The population in this research is all banking companies registered on the IDX for the 2021-2022 period, namely 44 companies. Data analysis using descriptive statistical tests, classical assumption tests (normality, multicollinearity, heteroscedasticity and autocorrelation), logistic regression tests and hypothesis tests (t test). The research results show that the size of the board of directors, leverage and company size have an effect on audit quality, while the size of the audit committee has no effect on audit quality. This indicates that the larger the size of the Board of Directors, the better the supervisory function. Thus, we will choose the Big Four KAP to guarantee audit quality. The smaller the company's leverage, the greater the company's opportunity to use Big Four KAP. Company size influences the company's decision to use Big Four KAP, while the size of the audit committee does not influence the company's decision to use Big Four or Non-Big Four KAP.

Mekanisme Good Corporate Governance Terhadap Nilai Perusahaan: Efek Moderasi Profitabilitas

This study aims to explore the impact of Good Corporate Governance (GCG) mechanisms involving the audit committee, independent board of commissioners, and institutional ownership on firm value proxied by PBV with profitability proxied by ROA as a moderating variable. This research focuses on property and real estate sector companies during 2020-2022 and sampling was carried out using purposive sampling method resulting in sample data of 99 entities. Data analysis uses the PLS-SEM approach with the WarpPLS 7.0 analysis tool. The final results showed the influence of the audit committee, institutional ownership, and independent board of commissioners on firm value. In addition, profitability is able to strengthen the impact of the audit committee on firm value, but profitability does not have an impact on the influence of the independent board of commissioners and institutional ownership on firm value.

The Role of Internal Control Systems and Good Corporate Governance in Fraud Prevention Efforts: A Literature Review

The act of fraud is an unethical act, it has a negative impact not only on individuals, organization and environment. This study analyses the role of internal control systems and good corporate governance in fraud prevention efforts. There are three main factors called the fraud triangle that motivate someone to commit fraud. Internal audit functions to assist management in detecting and preventing fraud that occurs in an organization in implementing good corporate governance. This is due to the absence of a good corporate governance mechanism. The role of internal auditors in detection and prevention efforts has a fairly strong role. And the role of internal auditors also has a very important role in good corporate governance. Literature studies from previous research and other related sources such as books, articles, and news are the methods used in this research. The method used in this research is literature review. The research conducted shows the results that a planned and structured internal control system can detect fraud. In addition, good corporate governance that is implemented by instilling good values will form a healthy company and avoid fraud. The internal control system has an important role in fraud prevention because with a system that is measurable and in accordance with the needs of the company, it will be easy to detect and prevent fraud. Easily detect and prevent fraud. GCG implementation can prevent fraud by implementing the GCG principles. An evaluation of the internal control system and GCG that is implemented needs to be done to increase the reliability of the system. This research is limited to the concepts of internal control system, good corporate governance, fraud, and articles on this topic.

Corporate governance and financial fraud occurrence – case study on Romanian companies

PurposeThe aim of this study is to approach the way in which corporate governance influences the occurrence of financial fraud, as expressed by the M-Beneish score. In order to get further into the topic, we have first computed a corporate governance score based on the comply-explain statement and then selected a few elements that are part of the corporate governance reporting: equilibrium of board members (EQUIL), independence of board members (INDEP), selection of the board members (NOM), remuneration policy (REM), audit committee (AUDIT) and the proportion of female directors on boards (GenF). They were tested, one by one, using the financial fraud score to see the way in which they interact.Design/methodology/approachThe study is conducted on a sample of 65 companies listed on the Bucharest Stock Exchange (BSE) for the 2016–2022 period. The data were processed using three-stage general least square [general least squares (GLS), with iteration, igls and option] with a common first-order panel-specific autocorrelation correction, so as to explain how a poor adoption of the corporate governance score and its elements has a negative implication for the M-Beneish score, controlling for the auditor opinion, type of auditing company and if the company is privately owned.FindingsThe results support most of our research hypothesis, revealing that a poor adoption of the corporate governance score and its components – AUDIT, EQUIL, INDEP and GenF – negatively influences the M-Beneish score, i.e. a low corporate governance score will lead to an increase in financial fraud. This is an encouraging aspect, for an improved adoption of the corporate governance principles reduces the occurrence of financial fraud.Research limitations/implicationsThis is a study that concerns the relationship between corporate governance and financial fraud for the case study for Romania.Practical implicationsThe study highlights the importance of adopting the corporate governance code applied to the Romanian business environment. By measuring the presence of financial fraud appearance through the M-Beneish score, we have managed to outline the negative relationship between the two components. Thus, it is an important aspect of which companies should take account, so they will have long-term benefits and ensure the continuity of the business.Social implicationsThe policy implications of this project are for policymakers, so that they will understand how a good corporate governance mechanism will enhance high-performing businesses. Different aspects regarding corporate governance were validated and are in the process of being validated. Managers can extract and try to understand and apply the good characteristics of corporate governance for the well-being of their companies. At a broader level, the macroeconomic environment will increase its own well-being while encouraging market players to enhance qualitative corporate governance reporting. There is no doubt that corporate governance has a positive impact on businesses.Originality/valueThe study highlights the importance of adopting the corporate governance code as applied to the Romanian business environment. By measuring the occurrence of financial fraud using the M-Beneish score, we have managed to outline the negative relationship between the two components. Therefore, this is an important aspect that companies should take into account in order to have long-term benefits and ensure the continuity of their business.

The Effect of Good Corporate Governance and Liquidity Mechanisms on Financial Performance (Empirical Study on Property and Real Estate Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2019-2022 Period)

This study examines the effect of Good Corporate Governance and liquidity mechanisms on financial performance in property and real estate sub-sector companies listed on the Indonesia Stock Exchange. Good corporate governance in this study is proxied with independent commissioners, audit committees, and institutional ownership. Liquidity is proxied by the current ratio. Financial performance is proxied by returns on assets (ROA). The purpose of this study is to analyze the influence of independent commissioners, audit committees, institutional ownership and current ratios on financial performance. The formulation of the problem in this study is whether independent commissioners, audit committees, institutional ownership and current ratios affect financial performance. The methods used in this study are descriptive methods and explanatory causal methods with a quantitative approach. The results of this study show that independent commissioners and institutional ownership have no effect on financial performance. While the audit committee and current ratio have a negative and significant effect on financial performance.

Analysis of Green Accounting and Good Corporate Governance with Internal Audit Quality as a Moderating Variable on the Sustainability of Agribusiness Companies Listed on the Indonesian Stock Exchange in 2020-2022

This study aims to determine and obtain empirical evidence about the effect of the Green Accounting mechanism, Good Corporate Governance with Internal Audit Quality on the disclosure of Sustainability of agribusiness companies listed on the Indonesia Stock Exchange in 2020-2022. The Internal Audit Quality mechanism is assessed through education and training, experience in public accounting firms, and the application of the whistle blowing system. The Good Corporate Governance mechanism is assessed through managerial ownership, institutional ownership, and independent commissioners. Green Accounting measurement is based on the Public Disclosure Program for Environmental Compliance (PROPER) which is seen from the company's annual report and sustainability report. The samples that became the object of this research were all agribusiness companies listed on the Indonesia Stock Exchange in 2020-2022 by meeting the predetermined criteria. The total research sample for three years of observation was 132 samples, using purposive sampling method. Data analysis was carried out using multiple linear regression methods. The results of this study indicate that Green Accounting have an effect on Sustainability Diclosure and Good Corporate Governance with Internal Audit Quality doesn’t have an effect on Sustainability disclosure.

The Impact of Board of Directors and Islamic Shariah on Company Internal Control: Evidence from Jordan


 The purpose of this paper is to examine the impact of corporate governance and compliance with Shariah on internal controls over financial reporting. It also examines the moderating role of Shariah compliance on the relationship between corporate governance structures and internal reporting controls. Ordinary least square (OLS) models are applied to 94 listed Jordanian companies on Amman Stock Exchange over the period 2015-2021. The empirical evidence shows board size, board meetings, Shariah compliance, and auditor type have a negative impact on material weaknesses in internal controls (MWIC). Second, unitary leadership, where the same individual is both the chair and CEO, is positively correlated to MWIC. Third, Shariah compliance strengthens the effect of board meetings, suggesting that Shariah compliance and good corporate governance mechanisms reinforce each other to ensure higher-quality internal financial reporting controls.

Good Corporate Governance Mechanism Effect and Green Accounting on Environmental Performance

Environmental performance is a company's relationship with the environment in terms of how it uses resources, how organizational processes affect the environment, how products and services affect the environment, how well products are processed, and how well it complies with work environment regulations. Manufacturing sector industrial companies are companies that have a major role as environmental pollution reason. It has been proven that there have been several chemical manufacturing cases of businesses whose surroundings are polluted. The goal of this study is to learn how institutional ownership, managerial ownership, independent commissioner, and green accounting effect environmental performance in from 2018 to 2021, manufacturing companies were listed on IDX. This research uses all data on manufacturers who are consistently recorded on Indonesia Stock Trade and become Appropriate members during 2018-2021 period. Purposive sampling technique used resulted 33 company’s sample. Using panel data regression model, collected data is processed using EViews 12. The findings of this study indicate that independent commissioners have a positive impact on environmental performance. In addition, managerial ownership has no effect on environmental performance, institutional ownership and green accounting have an effect on environmental performance.

The Influence of Good Corporate Governance Mechanisms on Earnings Management with Corporate Social Responsibility as a Moderation Variable in Manufacturing Companies on the Indonesian Stock Exchange

This research aims to determine the effect of good corporate governance mechanisms on earnings management with corporate social responsibility as a moderating variable in food and beverage subsector manufacturing companies on the Indonesia Stock Exchange. This research is quantitative research with a causal nature and data collection techniques obtained through annual reports of food and beverage subsector companies listed on the IDX for the 2018-2022 period. The population in this study were 26 food and beverage subsector companies listed on the Indonesia Stock Exchange (BEI). The non-probability sampling technique in this research is saturated sampling (census). The analysis techniques used are panel data regression techniques and moderated regression analysis. The research results show that independent commissioners have no effect on earnings management. The audit committee has no effect on earnings management. Institutional ownership has a negative and significant effect on earnings management. Managerial ownership has no effect on earnings management. Corporate social responsibility is unable to moderate the influence of independent commissioners on earnings management.

Implementation of Financial Ratios: Evidence from the Indonesia Stock Exchange

Objective: Knowing the influence between capital structure, intellectual capital, and good corporate governance mechanisms on the company's financial performance.
 Study Design: The population in this study consists of 87 primary consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. Data from this study comes from the company's annual report.
 Place and Duration of Study: Primary consumer goods sector companies listed on the Indonesia Stock Exchange for the period 2020-2022
 Methodology: The method used in data collection is using purposive sampling techniques. For the sample used in this study, a total of 147 company data using multiple regression analysis, model fit test, and hypothesis test were tested using the Eviews 10 analysis tool.
 Results: The results showed that intellectual capital variables and the board of commissioners affected profitability according to the hypothesis, while the capital structure variables, audit committee, and board of directors did not affect the profitability of the company which rejected the initial hypothesis.
 Conclusion: This quantitative research assesses the impact of financial management, corporate governance, and intellectual capital utilization on the financial performance of primary consumer companies, utilizing numerical data to test hypotheses. Specifically, it evaluates the relationships between profitability, liquidity, solvency, board composition, audit committee structure, and value added efficiency of human and structural capital on company returns. The analysis intends to optimize financial ratio performance, governance mechanisms, and intellectual capital employment to improve firm profitability within the sector.

The Impact of Implementing Good Corporate Governance Mechanisms and Compliance Programs in Combating Corruption in Egyptian Companies: A Case Study from Egypt

In recent years, there has been increasing interest and demand for the application of good corporate governance mechanisms and compliance programs as a means of reducing corruption in institutional companies. Since corporate corruption is widespread in all societies, both developed and developing, and since corruption has a serious impact on economic, sustainable, and social development, there has been widespread agreement that the application of good corporate governance mechanisms and compliance programs are effective tools that can reduce the serious consequences of corruption in large companies. Therefore, this study aimed to study the impact of the application of different corporate governance mechanisms and compliance programs on reducing corporate corruption. The study also included the advantages and disadvantages of each corporate governance mechanism according to the latest findings of experimental studies. The study also assessed the extent to which Egyptian companies comply with the Egyptian legislation and laws issued for corporate governance, and identified the best mechanisms that can be applied in Egyptian companies to govern those companies and implement compliance programs, and the impact of the application of good governance in reducing Egyptian corporate corruption, increasing employee and customer satisfaction, and reducing the depletion of company resources. In addition, the study addressed the main challenges facing Egyptian companies in implementing good corporate governance and compliance. The results of the study indicated that corporate governance mechanisms proposed by most international agencies and organizations concerned with combating corruption have an effective impact in reducing corruption in companies. However, to achieve the desired results from each good corporate governance mechanism, recent experimental studies have proposed some requirements or precautions that companies or governments can commit to to maximize the benefits of these mechanisms. On the other hand, the results of the study showed that Egyptian companies, both in the private and public sectors, have taken serious steps in implementing good corporate governance and implementing compliance programs. However, companies do not fully comply with the instructions of good corporate governance, and there are still some shortcomings in the implementation of good corporate governance and compliance programs. These shortcomings are due to several different reasons, which are mainly related to the non-mandatory nature of corporate governance in Egypt, in addition to the lack of sufficient incentives for companies to implement the proposed programs. Keywords: Governance mechanisms – compliance programs – corruption

Good Corporate Governance and Financial Performance

This study aims to examine the effect of good corporate governance mechanisms on financial performance in manufacturing companies in the consumer goods sub-sector listed on the Indonesia Stock Exchange for the 2019-2021 period. The mechanism of good corporate governance is proxied by Managerial Ownership, Institutional Ownership, and Audit Committees. Financial Performance is proxied by Return On Assets (ROA). Sampling Using the purposive sampling method, samples were obtained from as many as 30 companies. The technical data analysis used in this study is multiple linear regression analysis using the SPSS (Statistical Package for the Social sciences) version 25 assistance program. The results of this study show that institutional ownership and audit committees have a positive and significant effect on financial performance. While managerial ownership does not have a significant effect on financial performance.

Effect of Dividend Policy, Good Corporate Governance Mechanism, And Audit Quality on Agency Cost

This study is to analyze the effect of dividend policy, good corporate governance mechanisms, and audit quality on agency costs in manufacturing companies that conduct IPOs on the Indonesia Stock Exchange in the 2017-2020 period. In Indonesia, there are many companies that have relationships with agency costs, especially companies whose managers and owners of capital are different, such as companies listed on the Indonesia Stock Exchange (IDX). This research is essentially a form of quantitative research that uses secondary data, namely the company's annual report. This study used a sample of 132 companies in the manufacturing sector. The technique for analyzing the data in this study test a regression model selection test, classical assumption test, multiple linear regression, f test, and individual hypothesis testing (t test). According to the results of data analysis, it can be concluded that dividend policy, audit committee, audit quality, and institutional ownership has no effect on agency costs. In the other hand, independent commissioners have a significant negative effect on agency costs.

Pengaruh Mekanisme Good Corporate Governance dan Profitabilitas Terhadap Praktik Manajemen Laba pada Perusahaan Perbankan Periode 2017-2021

The actions taken by PT Envy carried out earnings management for fraudulent financial statements and consolidated its subsidiary companies so that investors became wary of investing their shares, thus this research was conducted to determine the effect of good corporate governance mechanisms and profitability on earnings management practices. Good corporate governance in this study uses institutional ownership and managerial ownership.This study used a population of 43 from banking companies listed on the Indonesia Stock Exchange (IDX) in the 2017-2021 period with non-probability sampling, and a purposive sampling technique with certain criteria so as to get a sample that met the sample criteria of 8 companies. This type of research is quantitative, so that the collection of research data uses secondary data in the form of financial reports officially issued by the IDX www.idx.co.id. Earnings management is measured using discretionary accruals, institutional ownership is measured by KI, managerial ownership is measured by KM, and profitability is measured by ROA. The analytical method used is descriptive analysis test, classical assumption test, multiple linear regression and hypothesis testing. The results of this study indicate that institutional ownership and profitability have no effect on earnings management practices, while managerial ownership has an effect on earnings management practices. Simultaneously profitability, institutional ownership, and managerial ownership affect earnings management practices

Pengaruh Pengungkapan Akuntansi Lingkungan dan Mekanisme Good Corporate Goverence terhadap Kinerja Keuangan Perusahaan: Studi Empiris Perusahaan Pertambangan dan Consumer Non Cylicals yang terdaftar di Bursa Efek Indonesia Periode 2018-2022

Financial performance is a description of the achievement of a company or the results of achievements that have been achieved by the company's management in carrying out its function of effectively managing the company's assets during a certain period. The purpose of this study was to examine the effect of environmental accounting implementation and good corporate governance mechanisms on company financial performance. The population in this research is mining companies and consumer non-cyclicals listed on the IDX in 2018-2022. Sampling using purposive sampling method, so that 12 companies will be used as research samples. The variables used are environmental accounting, constitutional ownership, audit committee, and independent commissioners as independent variables, while the company's financial performance as the dependent variable Hypothesis testing is carried out using a simultaneous significant test using multiple linear regression models. Partial significance test (t test) with α = 5% is used to test the hypothesis.The results of the tests that have been carried out indicate that there are two variables of environmental accounting disclosure and audit committee that have a significant positive effect on financial performance, while constitutional ownership and independent commissioners have no statistically insignificant effect on the company's financial performance.

PENGARUH GOOD CORPORATE GOVERNANCE DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN PADA PERUSAHAAN MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

The company's financial performance declined due to one of the reasons for the slowdown in household consumption. In the first quarter of 2019, consumption growth was 5.01% on an annual basis. Consumption slowed slightly from the fourth quarter of 2018 which reached 5.08%. This study aims to analyze the influence of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) on the company's financial performance. The measurement of corporate social responsibility is based on the Global Reporting Initiative (GRI) disclosure index as seen from the company's annual report. The method used in this research is associative quantitative research. Associative quantitative is research that is asking the relationship between two or more variables. The population in this study are food and beverage companies listed on the Indonesia Stock Exchange (IDK) 2017-2021. The research sample was taken using purposive sampling technique and obtained 8 companies, with observations for 5 years. So, the number of samples studied is 40. The results of this study indicate that the mechanism of Good Corporate Governance (GCG), namely institutional ownership has no significant effect on the company's financial performance which is reflected in the return on assets (ROA). Meanwhile, Corporate Social Responsibility (CSR) has a significant effect on the company's financial performance on return on assets (ROA).