Implementation Of Corporate Governance Research Articles

Pengaruh Implementasi Corporate Governance Terhadap Pengungkapan Sukarela (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2021)

The purpose of this study is to identify and analyze how much influence the implementation of Corporate Governance has on voluntary disclosure of manufacturing companies listed on the Indonesian Stock Exchange for the 2017-2021 period. There are four principles that must be applied so that the objectives of good corporate governance can be achieved, namely fairness, accountability, transparency and responsibility. Therefore, it is mandatory for all organs in the company to implement these principles, so in this research the author uses the variables independent board of commissioners, managerial ownership, and institutional ownership for voluntary disclosure. The population in this research is all manufacturing sector companies listed on the Indonesia Stock Exchange during the observation period, namely 2017-2021. The sample determination in this research was carried out using non-probability purposive judgment sampling, where the sample was determined based on certain criteria determined by the author and has limitations in terms of generalization. The results indicate that partially, the variables of independent board of commissioners and managerial ownership do not affect voluntary disclosure in the company's annual reports. However, institutional ownership variable significantly influences voluntary disclosure in the company's annual reports.

Implementasi Good Corporate Governance (GCG) dalam Pengelolaan Manajemen Risiko pada PT. BPRS Jam Gadang (Perseroda)

This research is motivated by the occurrence of fluctuations in the increase in the number of customers and the increase in the number of problematic financing customers of PT. BPRS Jam Gadang Perseroda, because the number of problematic financing customers is closely related to the implementation of good corporate governance (GCG) in risk management. This study aims to determine how the Implementation of Good Corporate Governance (GCG) in Risk Management at PT. BPRS Jam Gadang (PERSERODA). The research that the author did was with a qualitative approach method, the data sources that the author took were from primary data and secondary data. And data collection techniques with observation, interviews, and documentation. While the data analysis technique obtained using data analysis, namely data reduction, data display, conclusions and verification. Based on the results of research and analysis that the authors conducted, it can be concluded that the Implementation of Good Corporate Governance (GCG) in Risk Management at PT BPRS Jam Gadang (PERSERODA) shows that the company has run it well, adhering to principles such as transparency, accountability, responsibility, openness, and independence. The bank develops risk management strategies to effectively manage its activities and maintain good operational performance. And there are two obstacles faced, namely laws and regulations made by the bank, and the quality of human resource investment.

Corporate Governance, Financial Performance and Macroeconomics: The Impact on Bank Profitability Information

Banks are institutions with stringent regulations related to corporate governance implementation and the demand for high financial performance. Macroeconomic conditions significantly affect the financial performance, including profitability, of banks. The study focused on Indonesia's four state-owned banks, Bank Tabungan Negara (BBTN), Bank Negara Indonesia (BBNI), Bank Rakyat Indonesia (BBRI), and Bank Mandiri (BMRI). The research sample or saturated sample was the entire population. The 10-year observation period ran from 2011 to 2020. The panel data regression model with a common effect was used to evaluate the data. The data showed that CGPI and LDR had no discernible impact on profitability. While NPL and FOREX had a large negative impact on profitability as evaluated by ROA, CAR, NIM, SIZE, and BIRATE had a significant positive impact. All independent factors simultaneously have a major impact on profitability. All independent factors were able to explain their impact on profitability to a degree of 94.39%, according to adjusted R-squared, while other variables outside the model were responsible for the remaining effects.

The Influence of Internal Control and Good Corporate Governance Implementation on Fraud Prevention

This research is motivated by the many cases of fraud in the banking sector in Indonesia. The results of the 2019 Indonesian Fraud Survey stated that the fraud that occurred was caused by internal control factors and the implementation of good corporate governance. This research aims to determine the influence of internal control and the implementation of good corporate governance on fraud prevention in general banking in The research method used in this research is the verification method. The population in this research are internal auditors who work at commercial banks in the Jakarta and Bandung areas. The sampling technique used was a probability sampling technique with a simple random sampling technique, and used the Slovin formula so that the total sample was 47 internal auditors in the Jakarta and Bandung areas The data analysis used is multiple linear regression analysis using the SPSS program. Research results Simultaneously, Internal Control and the implementation of Good Corporate Governance have an effect on fraud prevention. Partially, the implementation of internal control has an effect on fraud prevention. Partially, the implementation of good corporate governance has an effect on prevention

The Influence of Capital Structure, Profitability, Good Corporate Governance on Earnings Quality and Its Impact on Company Value

The primary aim of this research is to examine the impact of Capital Structure, Profitability, and the Implementation of Good Corporate Governance on Earnings Quality and then examine the impact on Company Value amid the Covid-19 pandemic. The following research will include comparative studies on companies in Indonesia and Malaysia. This research uses quantitative methods with a causality approach. Purposive sampling is a research methodology used in sampling techniques. This research was conducted on companies listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange during the period 2019 to 2021. The findings of this research reveal that there are differences between Indonesia and Malaysia. The findings of a study conducted in Indonesia show that factors such as capital structure, profitability and corporate governance have a significant influence on earnings quality. However, the findings of a study conducted in Malaysia show that only profitability has an influence on earnings quality. The findings of this research also indicate that companies located in Indonesia and Malaysia in terms of the influence of capital structure and corporate governance on earnings quality have no impact on company valuation. The influence of profitability on earnings quality in Malaysia has an impact on company value.

Implementasi good corporate governance, whistleblowing system dan risiko sanksi pajak terhadap kepatuhan wajib pajak

Tax compliance still needs to be improved by encouraging the implementation of transparent taxation, namely the transparency of tax management in all areas, both administrative and management of the use of funds derived from tax revenue. The real effort that must be done to implement the transparency is through the bureaucracy reform movement in the service system and tax administration that is through the implementation and implementation of Good Governance. Good governance is a well-executed organizational governance, by carrying out the principles of openness, justice and accountability in order to achieve the goals of the organization. The problems that will be studied by the researcher is a social and dynamic problem. Therefore, the researcher chooses to use quantitative research method to determine how to find, collect, process and analyze the data of the research result, so that this research is expected to give input for the need of strengthening of harmony between Good Corporate Governance and Whistleblowing System and the need to create system or policies and operational procedures of taxation sanction risk required for tax compliance implementation. The results showed that there is influence between the implementation of Good Corporate Governance to tax compliance, there is influence between Whistleblowing System on tax compliance, there is influence between Taxation Sanction on tax compliance.

The Impact of The Computerized Accounting Information System in Reducing Financial Risks in Jordanian Commercial Banks

Purpose: The purpose of this study was to assess the impact of computerized accounting information systems (CAIS) on reducing financial risks within Jordanian commercial banks listed on the Amman Stock Exchange. This involved examining the components, characteristics, and benefits of CAIS in this context. Methods: The study employed a questionnaire-based approach to gather information, distributing 75 questionnaires among financial managers and internal auditors within Jordanian commercial banks. A total of 64 questionnaires were retrieved and analyzed to draw conclusions. Results and Discussion: The analysis revealed a significant impact of various variables related to computerized information systems in mitigating financial risks within the sampled banks. This finding underscores the importance of CAIS in enhancing risk management practices within the banking sector. Notably, the study highlights the necessity of corporate governance implementation and the preparation of specialized reports to enhance financial risk disclosure processes. Implications of the Research: The findings of this research have several implications for both academia and practice. Firstly, they emphasize the crucial role of CAIS in reducing financial risks within commercial banks. Secondly, they underscore the importance of implementing robust corporate governance mechanisms to strengthen risk management frameworks. Additionally, the study suggests the need for further research to explore the impact of accounting information systems on different types of risks and their consequent effects on financial performance. Originality/Value: This study contributes to the existing literature by providing insights into the specific context of Jordanian commercial banks and their utilization of CAIS for managing financial risks. By identifying the components, characteristics, and benefits of CAIS in this setting, the research adds valuable knowledge to the field of accounting and finance. Moreover, its recommendations for enhanced corporate governance practices and specialized reporting can inform practical strategies for risk management in banking institutions.

Corporate governance and Indonesian state-owned companies’ performance: Agency and institutional perspectives

The purpose of this study is to investigate the relationship between corporate governance practices and Indonesia’s SOEs' performance. State-owned enterprises (SOEs) are often criticized for underperformance and political manipulation, raising doubts about the efficiency of implemented corporate governance mechanisms. Additionally, this research examines the moderating role of board diversity on the relationship between good corporate governance (GCG) and performance. This study adopted a quantitative method to analyze secondary data from SOE’s financial statements from 2012 to 2019. The key independent variable is the GCG score, while return on assets is the dependent variable. The regression model incorporates managerial diversion variables and control variables. Surprisingly, the results found that corporate governance practices adversely affect the performance of Indonesian SOEs, particularly when board members have political affiliations. Institutional theory explains the negative relationship between the implementation of GCG and the performance of state-owned companies from coercive and mimetic perspectives. The phenomenon often happens in a developing country when a new system is adopted without fully understanding its mission. Additionally, the significant role of the Board of Commissioners' political connection as a moderating variable supports the conjecture of the managerial diversion perspective. This research contributes empirical insights for SOE stakeholders about corporate governance implementation and the performance of Indonesia's SOEs from the perspective of an emerging economy. The paper contributes novel views to agency and institutional theory for developing countries.

Analysis of the Implementation of Good Corporate Governance in Food Companies: PT. Indofood Success Makmur

PT Indofood Sukses Makmur, a renowned Indonesian food manufacturer, is assessed for Good Corporate Governance (GCG) compliance. The company has grown and transformed over the past two decades, becoming a major food industry participant. Indofood understands the relevance of GCG principles for openness, accountability, and stakeholder value despite its success. This study finds Indofood's GCG principles—transparency, responsibility, accountability, independence, and fairness—strong through literature and company actions. However, financial disclosures and sustainability efforts might be more transparent, accountability systems strengthened, and workplace culture more inclusive and varied. The research recommends that Indofood improve its governance procedures through constant monitoring and improvement to sustain stakeholder confidence and navigate the changing consumer food market.

The power of good corporate governance in activating the impact of internal information quality on tax savings

PurposeThis paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.Design/methodology/approachThis study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports.FindingsBased on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests.Research limitations/implicationsThis examination utilizes only publicly traded companies from one developed country.Practical implicationsFor the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future.Originality/valueThis study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.

The Influence of Diversification and Corporate Governance Implementation on Company Value with Company Size as a Moderation Model in Manufacturing Companies Listed on the Stock Exchange from 2020 to 2022

This study aims to analyze the influence of diversification and corporate governance implementation on firm value, with firm size as a moderating variable, in manufacturing companies listed on the Indonesia Stock Exchange during the period 2020-2022. The research method employed is causal research. The population of the study comprises 193 manufacturing companies listed on the Indonesia Stock Exchange, with classical assumption tests and hypothesis testing used as analytical techniques. The results of the analysis indicate that diversification does not have a significant influence on firm value. However, the independence of the board of commissioners and the competence of the audit committee significantly affect firm value. Additionally, firm size serves as a significant moderating variable in influencing the relationship between the independence of the board of commissioners, competence of the audit committee, and firm value. The implications of these findings are to provide valuable insights for practitioners and academics in understanding the factors influencing firm value in the Indonesian capital market. This underscores the importance of effective corporate governance implementation, particularly through enhancing the independence of the board of commissioners and the competence of the audit committee, as well as a better understanding of how firm size can moderate the relationship between these factors and firm value.

АНАЛІЗ ЕФЕКТИВНОСТІ КОРПОРАТИВНОГО УПРАВЛІННЯ АГРОПРОМИСЛОВИМИ ПІДПРИЄМСТВАМИ

The article assesses the efficiency of corporate governance in the largest integrated enterprises of the agricultural sector of Ukraine. The research was conducted using the methods of induction and deduction, comparative analysis and theoretical generalization. The main provisions of large enterprises of the agricultural sector of Ukraine and their experience in implementing corporate governance were studied. The author has developed algorithms (methods) for assessing the corporate governance rating with the relevant classification areas of assessment and indicators for assessing the relevant areas, a four-level rating scale for assessing the level of formation of the corporate governance institution in integrated agricultural formations (agroholdings) of Ukraine. It is established that the main characteristic components of the assessment of the level of corporate governance are: supervisory board, board of directors, committees, corporate secretary, audit committee, charter, etc. It is determined that agriholdings whose shares are listed on international stock exchanges meet the highest level of corporate governance standards, the level of which reaches the maximum value. It is also established that this level is ensured mainly by compliance with corporate governance standards introduced by international stock exchanges (Warsaw and London). The weighted average level of corporate governance in integrated agrarian formations (agroholdings) of Ukraine is at an unsatisfactory level, which causes significant risks for shareholders and investors. It is proved that the existing theoretical and practical provisions and recommendations for the formation and development of the institution of corporate governance in integrated formations have been deepened and new theoretical and practical provisions and recommendations for the formation and development of the institution of corporate governance in integrated enterprises in the agricultural sector have been developed. The obtained practical results are a recommendation base and are aimed at solving the problems of formation and development of the institution of corporate governance of integrated enterprises in the agricultural sector, can be used by state institutions to improve the existing institutional support for the development of economic entities. The results of the research can be used by the legislative and executive bodies of the country, as well as by agrarian organizations engaged in production, harvesting and processing of products, and creation of a market system for dissemination of agricultural knowledge and information. Keywords: agrarian enterprise, corporate management, valuation of effectiveness, integrate formation, agroholdings, joint-stock company.

Corporate governance and firm’s risk behavior: the moderating role of corporate social responsibility

PurposeThis study aims to examine the nexus of corporate governance with firms' financial risk-taking behavior under the corporate social responsibility (CSR) disclosures in the context of non-financial listed firms of an emerging economy.Design/methodology/approachThis study investigates the relationship between corporate governance as evaluated by an index and several financial risks, including idiosyncratic, default and systematic risks. The connection of corporate governance with financial risks is also studied while considering the moderation of CSR disclosures. The data are collected from 2014 to 2018 of 73 top 100-index listed non-financial firms of Pakistan Stock Exchange (PSX). Panel regression fixed effect and 2-step generalized method of moments techniques are applied to confirm the hypothesis along with the diagnostic tests to confirm that all outcomes of models must be authentic and reliable.FindingsThe study’s findings confirm that enhancing the overall corporate governance measures resulted in an augment in the firm’s risk due to weak control and regulations prevailing in emerging economies. Moreover, CSR disclosures enhance stakeholder information, lessen information asymmetry about management policies and mitigate the risk associated with operational uncertainties.Practical implicationsThis study has a practical implementation to policymakers that effective monitoring and controlling measures facilitate the corporate management for minimizing the financial risks. Further, the study’s findings shed light that implementing corporate governance measures is not enough to mitigate financial risks until supervisory measures in the form of CSR disclosures are not taken to analyse corporate governance effectiveness.Originality/valueThis paper enhances the key findings in the literature by examining the role of corporate governance measures with respect to firms’ financial risks considering the moderating role of CSR disclosures. Furthermore, this research adds to the body of knowledge regarding the implementation of monitoring measures that assist in the mitigation of firms’ financial risks hence firm value.

Pengaruh Jumlah Dewan Direksi dan Dewan Komisaris, Ukuran Perusahaan, dan Penerapan Good Corporate Governance (GCG) terhadap Nilai Perusahaan pada Sektor Industri Dasar dan Kimia yang Terdaftar di Bursa Efek Indonesia Periode 2020-2021

Company value is a form of calculation that shows how good and significant the management performance and company growth is. In Indonesia, companies in the materials and chemical industry sector have great potential because the raw materials in this industry are natural resources. In this way, investors will be interested in investing in companies in this industry in Indonesia because the possibility of company development in this sector is very high. Various factors can influence the increase in company value, including the number of board of directors, number of board of commissioners, company size, and the implementation of Good Corporate Governance (GCG). This research was conducted to ascertain the influence of these four factors partially and simultaneously on company value. This research utilizes data from the annual and financial reports of 56 companies in the basic and chemical industries in the 2020-2021 period. The results of this research indicate that the number of board of commissioners partially influences company value, while the number of board of directors, company size, and the implementation of Good Corporate Governance (GCG) partially do not influence company value. However, the number of board of directors, number of board of commissioners, company size, and implementation of Good Corporate Governance (GCG) simultaneously have an influence on company value.

Jumlah Rapat Komite Audit, Jumlah Dewan Direksi, dan Jumlah Dewan Komisaris terhadap Pengaruh Penerapan GCG pada Perusahaan Sektor Garmen dan Tekstil yang Terdaftar di Bursa Efek Indonesia (BEI) pada Tahun 2020-2021

This research aims to investigate the influence of the implementation of Good Corporate Governance (GCG), the number of audit committee meetings, the number of board of directors, and the number of board of commissioners on the financial performance of companies in the garment and textile sector listed on the Indonesia Stock Exchange (BEI) in the years 2020-2021. The indicators of GCG implementation are proxied by commitment, transparency, accountability, independence, responsibility, fairness, leadership, and vision-mission. Furthermore, financial performance is measured using Return on Assets (ROA). The research employs T and F statistical tests as the research methods. Based on the findings, it is revealed that the implementation of GCG, the number of audit committee meetings, the number of board of directors, and the number of board of commissioners, either partially or simultaneously, do not have a significant effect on the financial performance of companies in the garment and textile sector listed on the Indonesia Stock Exchange (BEI) in the years 2020-2021.

Acceptance of the Implementation of Corporate Governance among Small and Medium Enterprises (SMEs) in Malaysia

Acceptance of the Implementation of Corporate Governance among Small and Medium Enterprises (SMEs) in Malaysia

Pengaruh Audit Internal, Budaya Organiasai, dan Komite Audit Terhadap Pelaksanaan Good Corporate Governance pada PT Pos Indonesia Cabang Metro

This study aims to examine the influence audit, organizational culture, audit committee on the emplementation of good corporate governance at PT Pos Indonsia Metro Branch. The type research used in this research is quantitative. In this study primary data was used throught quesetionnaires and the sample populations used was 66 employees in the company. The analytical tool used is multiple liner regression analysis using the IBM SPSS 22. The result of this study show internal audit has an influence on the implementation of good corporate governance, organizatioanal cilture influences the implementation of good corporate governnace, the audit committee influences the implemantations of good corporate governance and internal audit, Organizatioanal cilture, audit committee jointly influnces in the implementation of good corporate gobvernance, together with internal audit, Organizatioanal cilture, audit committee support the implemantations of good corporate governance

Evaluasi Transformasi Good Corporate Governance pada Bank Aceh Syariah

The Islamic banking sector has experienced significant development, offering various Sharia-compliant products such as Islamic savings, Sharia-based accounts, and Sharia deposits, emphasizing the need for a robust implementation of good corporate governance. This study aims to differentiate the disparities in applying good corporate governance at Bank Aceh Syariah before and after its conversion. This qualitative descriptive research focuses on Good Corporate Governance at Bank Aceh Syariah, utilizing secondary data such as the company's annual reports from the periods 2014-2015 (conventional) and 2018-2022 (Sharia). The results of the GCG self-assessment at Bank Aceh Syariah for the years 2014-2015 in the conventional operational system had an average GCG score of 1.86, which was better compared to the period of 2018-2022 in the Sharia operational system with an average GCG score of 1.90. This indicates that the implementation of Good Corporate Governance at Bank Aceh during conventional operations was superior compared to operations in the Sharia system. Post-conversion to the Sharia system, there is an additional organizational structure in the implementation of Good Corporate Governance with the establishment of a Sharia Supervisory Board, responsible for overseeing the bank's business activities aligned with the Fatwa of the National Sharia Council.

Implementation of BUMN Minister Regulation Number 09/MBU/2012 Implementation of Good Corporate Governance in Bumida Insurance Companies

This research aims to determine the implementation of regulation-09/MBU/2012 concerning the Implementation of Good Corporate Governance in Bumida general insurance companies. The type of research used is empirical using statutory, conceptual and sociological approaches. The source of legal materials used is secondary data consisting of primary, secondary and tertiary legal materials and primary data. Based on the research results, it is known that the arrangements used in implementing the principles of implementing good corporate governance in Indonesia are regulated in the Minister of State-Owned Enterprises Regulation number PER-01/MBU/2011 with amendments to PER-09/MBU/2012 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises (BUMN). Furthermore, the principles for implementing good corporate governance in Indonesia are strictly regulated through the Decree of the Minister of BUMN Number Kep-117/M-MBU/2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises ( BUMN) which was then refined by Minister of State for BUMN Regulation Number: PER-09/MBU/2012 and Bumida has implemented good corporate governance as proven by the existence of an ISO certificate, if there is an ISO certificate it means it has been checked and has implemented the implementation of corporate governance which is good, the Mataram branch of Bumida Insurance is transparent on the financial side because it is a non-banking financial company. Bumida entered the FKLJK forum (financial services institution communication forum) which is directly supervised by the OJK.

The Effect of Implementing Good Corporate Governance (GCG) on the Financial Performance of Islamic Banks in Indonesia

The implementation of Good Corporate Governance (GCG) in Indonesia's Islamic banking sector is an important step to ensure transparency, accountability and fairness in the operations of financial institutions. As an integral part of the financial system, Islamic Banks not only provide services in accordance with Islamic economic principles but are also expected to implement good corporate practices to maintain the sustainability and reliability of the financial system.Corporate governance in the banking sector gained attention after the 1997 financial crisis, with the establishment of the National Committee on Governance Policy (KNKG) in 1999. Analysis of previous research results shows variations in the effect of GCG implementation on the financial performance of Islamic banks. Some studies found a significant positive impact, while others showed negative or insignificant results. Variations in results are also seen in performance indicators such as CAR, NPF, ROA, and ROE, reflecting the complexity of the relationship between GCG and aspects of financial performance. Therefore, deeper contextual understanding and improved effectiveness of GCG implementation are needed to understand and maximize its impact amidst increasingly complex financial market dynamics.