Independent Commissioners Research Articles

Early Detection Of Financial Crisis: Analysis Of Insurance Companies On The Indonesian Stock Exchange

This research aims to analyze the influence of Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners on Financial Distress in Insurance Companies. The unit of analysis is 15 insurance companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The independent variables used in this research are Liquidity which is measured using the current ratio (CR), Cash Flow which is measured through operating activities, Institutional Ownership which is measured through the percentage of shares owned by institutional parties, Profit which is measured using profit before tax (EBT), and Independent Commissioners which are measured using the percentage of the number of independent commissioners. Meanwhile, the dependent variable is Financial distress which is measured using ICR (Interest Coverage Ratio). The sample collection method used by researchers is purposive sampling. The analytical method used is multiple linear regression analysis. The results of this research show that Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners have a significant influence on Financial Distress conditions.

Pengaruh Perencanaan Pajak, Beban Pajak Tangguhan, Aset Pajak Tangguhan, Dan Komisaris Independen Terhadap Manajemen Laba

The purpose of this research is to examine the impact of Tax Planning, Deferred Tax Expenses, Deferred Tax Assets, and Independent Commissioners on Profit Management in Energy Sector Companies listed on the Indonesia Stock Exchange (BEI) during the period from 2018 to 2023. This study utilizes secondary data, specifically the annual financial reports of the companies. It employs a quantitative research approach. The total population consists of 87 companies in the energy sector, with purposive sampling as the chosen method. The study uses a sample of 15 companies over a 6-year observation period, resulting in a total of 90 observation objects. The analysis technique applied in this research is panel data regression analysis, utilizing the common effect regression model. Data processing was carried out using Eviews version 13 and Microsoft Office Excel. The findings indicate that tax planning, deferred tax expenses, deferred tax assets, and independent commissioners have a simultaneous effect on earnings management. Specifically, tax planning does not influence earnings management, deferred tax expenses also do not impact earnings management, deferred tax assets do influence earnings management, and independent commissioners have no effect on earnings management.

The Effect Of Good Corporate Governance And Company Size On Financial Performance With Audit Quality As A Moderating Variable In LQ45 Companies

The study aims to examine the effect of Good Corporate Governance (GCG) and company size on financial performance with audit quality as a moderating variable in companies listed in the LQ45 index on the Indonesia Stock Exchange (IDX) during 2021-2023. Using a quantitative approach, the study also applied multiple linear regression analysis and Moderated Regression Analysis (MRA) to test the relationship between variables. The research conducted shows that GCG, as measured by independent commissioners and managerial ownership, has a positive influence on financial performance. Audit quality is proven to moderate the relationship between GCG and financial performance, strengthening the positive influence of GCG on firm performance. These findings make a significant contribution to the development of agency and stakeholder theory, and provide practical recommendations for companies to improve governance and audit quality to improve financial performance. This study also observes research gaps related to the implementation of GCG in Indonesia which is lagging when compared to other ASEAN countries, as well as the need for stricter supervision in the management of companies listed on the IDX.

Earnings Management Detection: The Effect of Good Corporate Governance and Executive Compensation (Comparison of Jones Model with Dechow Model)

The purpose of this study is to analyze the effect of the Independent Board of Commissioners, Independent Audit Committee, Managerial Ownership, and Executive Compensation on earnings management in the company, by comparing the effectiveness of the Jones Model and the Dechow Model in detecting discretionary accruals because there are inconsistencies between the two models. The population of this study are food and beverage companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The sample selection was carried out using a purposive sampling method, namely sampling based on predetermined criteria, including companies that are consistently listed on the IDX, have complete annual reports, are not from the financial sector, and have complete data on the independent board of commissioners, independent audit committee, and executive compensation. The method used is a quantitative method that focuses on collecting and analyzing numerical data to explain certain phenomena. The results showed that Good Corporate Governance (GCG) and Executive Compensation have no significant effect on Earnings Management. This study also compares the ability of the two models to identify discretionary accruals that reflect earnings manipulation practices by management. The results of the analysis show that the Dechow Model, which modifies the Jones Model approach by considering changes in accounts receivable, provides more accurate and consistent results in detecting earnings management than the Jones Model. Therefore, companies need to strengthen governance by increasing the proportion of independent commissioners, audit committees, and managerial ownership, and designing executive compensation structures that reduce incentives to perform earnings management.

Bridging Profitability and Sustainability: Insights from Carbon Emission Disclosures and Governance Practices

Background: This study investigates the impact of Good Corporate Governance (GCG), profitability, and carbon emission disclosure on firm value in the mining sector listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022. The mining sector's significance in Indonesia's economy and the growing importance of sustainable corporate practices provide the context for this research. Methods: The study employs multiple regression analysis to analyze data from 11 mining companies. The variables include GCG mechanisms (managerial ownership, institutional ownership, independent commissioners, and audit committees), profitability (measured by Return on Assets), and carbon emission disclosure. Firm value is proxied by Tobin's Q. Results: The findings indicate that profitability has a positive and significant impact on firm value. However, GCG mechanisms such as independent commissioners and audit committees have negative effects on firm value. Carbon emission disclosure does not significantly influence firm value. Conclusion: The study highlights the importance of profitability in driving firm value but also underscores the need for effective GCG mechanisms and greater emphasis on environmental responsibility. The results contribute to the discourse on sustainable corporate practices and their implications for investor confidence, emphasizing the necessity of balanced approaches that integrate financial performance with environmental sustainability.

Improving Financial Stability: How Good Corporate Governance Can Prevent Financial Distress

This research aims to examine the influence of Good Corporate Governance as proxied by the size of the Board of Directors, Independent Commissioners, Audit Committee and Institutional Ownership on Financial Distress partially or simultaneously. The research method used is quantitative and uses secondary data, namely service firms, one of which is the transportation sector, which is listed on the Indonesia Stock Exchange. The sample used was 7 issuers and the results were obtained using a purposive sampling method. The analytical method used is multiple linear regression analysis techniques. The results of this research show that overall, the size of the Board of Directors, Independent Commissioners, Audit Committee and Institutional Ownership variables partially or simultaneously influence Financial Distress. Managerial Implications for the study on the effect of good corporate governance on financial distress highlight the critical role of robust governance practices in mitigating financial risks and ensuring organizational stability. Implementing strong governance mechanisms such as effective board oversight, transparent financial reporting, and adherence to regulatory requirements can significantly reduce the likelihood of financial distress.

Determinan Agresivitas Pajak: Firm Size, Good Corporate Governance dan Financial Distress

Tax aggressiveness is related to tax planning actions taken by companies to reduce their tax obligations. This study aims to analyse the influence of firm size, institutional ownership, independent commissioners, and financial distress on tax aggressiveness at property and real estate sector companies listed on the Indonesia Stock Exchange in 2019-2023. This study uses a quantitative approach that is descriptive in nature with a purposive sampling method to determine the research sample. From 92 property and real estate sector companies, 15 companies are selected per year that met the predetermined criteria. Multiple linear regression analysis with the SPSS 26 program is used to test the hypothesis. The results of the analysis show that firm size, institutional ownership, and financial distress have an influence on tax aggressiveness, while independent commissioners have no influence on tax aggressiveness. This study is expected to help regulators in considering policies on corporate income tax burdens.

The effect of financial performance and corporate governance on tax avoidance with environmental performance as a moderator

This study aims to examine the influence of financial performance and corporate governance on tax avoidance, with environmental performance acting as a moderating variable. Tax avoidance is designated as the dependent variable, while profitability (ROA), managerial ownership, the composition of independent commissioners, and auditor quality are regarded as independent variables. Corporate Social Responsibility (CSR) is recognized as both an indicator of environmental performance and a moderating variable. The study employs a quantitative methodology utilizing purposive sampling, focusing on banking entities listed on the Indonesia Stock Exchange (IDX) during the period from 2021 to 2023. Data analysis is executed through multiple regression, T-tests, and F-tests using SPSS Version 25. The findings reveal that financial performance (profitability) and environmental performance (CSR) exert a significant negative impact on tax avoidance. Furthermore, CSR enhances the effect of profitability on tax avoidance. Conversely, managerial ownership, the size of the independent board of commissioners, and auditor quality do not exhibit a significant influence on tax avoidance. The research also indicates that environmental performance does not moderate the effects of managerial ownership, the size of the independent board of commissioners, and auditor quality on tax avoidance. The implications of this study highlight the necessity of integrating CSR into business strategies to foster ethical tax practices. These findings contribute to the broader discourse on tax compliance and corporate governance, offering valuable insights for stakeholders aiming to reconcile financial goals with social responsibilities.

The Effect of Board Size, Board Independence and CEO Duality on Firm Value with Financial Performance as A Mediating Variable

This study aims to determine the effect of board size, independent commissioners, CEO duality on firm value with company performance as a mediating variable for corporate governance variables. The number of samples used in this study were 44 companies listed on the Indonesia Stock Exchange in 2019 - 2022 in the manufacturing sector. The analysis method used is multiple linear regression using Eviews 10 to process data. Data collection is taken through the Indonesia Stock Exchange website or the company's official website. The results of this study can show the effect of board size, independent commissioners, CEO duality, performance on firm value mediated by company performance.

KEPATUHAN TATA KELOLA PERUSAHAAN DAN PERAN KOMISARIS INDEPENDENT PADA PERUSAHAAN KELUARGA DI INDONESIA

This study aims to determine the compliance of family corporate governance in Indonesia and to see whether independent commissioners influences the compliance of family corporate governance. The population in this study were non-cyclical consumer sector companies listed on the Indonesia Stock Exchange in 2020-2022. The sample selection used the purposive sampling method. Based on the results of the Pooled OLS regression, it is known that family companies have a lower level of compliance than non-family companies and independent commissioners have an insignificant effect on the disclosure of corporate governance compliance.

The impact of CSR disclosure, audit committees, independent commissioners, and managerial ownership on corporate value: An empirical study of basic materials sector companies listed on the Indonesian stock exchange

Negative sentiments stemming from declining aluminum exports, coal price fluctuations, a global economic slowdown, and environmental pressures influence investors' perceptions of investing in the raw materials sector. CSR disclosure and implementing Good Corporate Governance principles through audit committees, independent commissioners, and managerial ownership are vital strategies for enhancing investor confidence and long-term corporate value. This study investigates the effect of CSR disclosure and corporate governance attributes on corporate value, with Return on Assets as the control variable. It utilizes secondary data from annual and sustainability reports, focusing on companies in the basic materials sector listed on the Indonesia Stock Exchange from 2020 to 2023. Quantitative methods are employed, with panel data regression analysis. The results indicate that, partially, CSR disclosure has a negative and significant impact on corporate value, whereas the proportion of the audit committee exhibits a positive and significant effect. The frequency of audit committee meetings and the proportion of independent commissioners do not demonstrate a significant impact. Audit committee competence positively and significantly influences corporate value, while managerial ownership adversely and significantly affects it. Collectively, these variables influence corporate value. These findings provide valuable insights for company management to enhance CSR and governance practices, thereby increasing the company's appeal to investors

Analisis Empiris Agresivitas Penghindaran Pajak Dalam Konteks Tanggung Jawab Sosial Perusahaan Dan Tata Kelola Perusahaan

The issue of tax avoidance remains intriguing for further investigation in empirical studies. This research was conducted to re-examine the influence of corporate social responsibility and corporate governance on aggressive practices in tax evasion. The data source is from manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange between 2017 and 2021. This research used 168 companies with a purposive sampling method. Data analysis uses multiple linear regression using statistical software for social sciences. The research results show that the variables of corporate social responsibility, the presence of independent commissioners, and institutional ownership have a significant negative impact on aggressive practices in tax evasion. On the other hand, there is no significant influence of the audit quality variable on tax evasion. Therefore, the higher the level of corporate social responsibility disclosure, the proportion of the presence of an independent board of commissioners, the quality of audits, and the proportion of institutional ownership, the level of aggressive practices in tax evasion tends to decrease.

Ex-Military Commissioners and Firm Performance: The Case of Indonesia Manufacturing Companies

This investigation relates to the new corporate governance (CG) suggestions that using ex-military commissioners can lead to better firm performance. Quantitative analysis was used to analyze the sample of manufacturing sector public companies. The data comprised 906 firm-years (from 2016 to 2021). This study shows that companies whose CG practices involve employing ex-military officers exhibit high firm performance levels. This study emphasizes the value of using a configurational analytical approach to explore firm jointly- and country-specific CG practices that engage firms to achieve the necessary level of performance. The current study calls policymakers’ attention to evalu- ating the current state of regulatory and competitive development in their countries and establishing policies in line with that assessment. The methodology provides connec- tions between firm performance and CG with retired military commissioners. This study broadens the focus of CG studies to provide effective solutions for practitioners, especially Indonesian manufacturing firms. It also highlights the importance of ex-military commis- sioners in a particular company sector and CG procedures specific to a particular nation. It encourages enterprises to reach the desired level of performance. The research impli- cation relates to good governance in board diversity using ex-military as independent commissioners for supervisory roles.

Pengaruh Good Corporate Governance, Cash Holding, dan Kinerja Keuangan terhadap Pertumbuhan Laba

This study aims to analyze the effect of good corporate governance, cash holding, and financial performance on profit growth. This research was conducted by analyzing the financial statements of companies in the banking sector listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The sample used in this study was 15 banking sector companies listed on the Indonesia Stock Exchange during the period from 2019 to 2023 using a purposive sampling technique. The data used in this study is secondary data in the form of financial reports from each company that has been used as a research sample. The variables used in this study are Good Corporate Governance (X1) as the first independent variable, Cash Holding (X2) as the second independent variable, and Financial Performance (X3) as the third independent variable and Profit Growth (Y) as the dependent variable. Panel data regression method is used as a research methodology in this study. Analysis of research results using the help of EViews 12 software. The results showed that the best model is the Common Effect Model (CEM). The results of this study indicate that Good Corporate Governance (Independent Commissioners) partially has no effect on the Profit Growth, Cash Holding partially has no effect on the Profit Growth, Financial Performance (Return On Assets) partially affects the Profit Growth, and simultaneously Good Corporate Governance (Independent Commissioners), Cash Holding, and Financial Performance (Return On Assets) affects the Profit Growth.

Guardians of integrity: Exploring the role of corporate governance in preventing financial statement fraud

Financial statement fraud (FSF) is a significant contributor to losses and has persisted for several years (Association of Certified Fraud Examiners [ACFE], 2022). Previous studies concluded that corporate governance (CG) can significantly reduce FSF (Mangala & Kumari, 2015; Rostami & Rezaei, 2022; Velte, 2023). However, while the literature study acknowledges that CG plays an important role in fraud prevention and emphasizes the importance of effective board composition, effective audit committees, independent commissioners, gender diversity, ownership structure, and engagement with Big 4 accounting firms to the occurrence of FSF, the empirical evidence in Indonesia suggests inconsistent results. This research investigates the role of CG in preventing FSF in Indonesia. The study tested a sample of 72 companies sanctioned by the Financial Services Authority (Otoritas Jasa Keuangan, OJK), Republic of Indonesia, in 2019–2021 and another 72 control sample companies from similar sectors and equivalent market capitalization. A total of 144 data units are analyzed using panel data regression and independent t-test. The study results show that the frequency of audit committee meetings and institutional ownership positively affect the indication of FSF. The study result also shows significant mean differences in the frequency of audit committee meetings and institutional ownership between companies indicated and not indicated to commit FSF. Besides enriching the global discourse on best CG practices, this study provides actionable recommendations for enhancing the integrity and transparency of financial reporting.

The influence of independent commissioners, leverage, and corporate social responsibility disclosure strategy on firm value

This research aims to investigate and provide an overview and explanation of companies operating in the infrastructure sector, particularly in construction, and their role in the economic development of Indonesia. It also empirically tests and finds evidence related to factors influencing a firm’s value. The variables in this study consist of independent commissioners, leverage, corporate social responsibility (CSR) disclosure, firm value, and firm size. The research method employs a quantitative approach using secondary data sources from the annual report, Osiris (a system that contains data sources providing information such as financial reports, etc.), and sustainability reports listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The results indicate that the variables of independent commissioners and leverage do not significantly influence the firm’s value, neither positively nor negatively Similarly, the firm size as a moderation variable also does not have a significant impact on the firm’s value. Meanwhile, CSR disclosure has a significant positive impact on firm value, which greatly influences the enhancement of the company’s reputation among stakeholders, and investors, The higher the level of CSR disclosure, the higher the firm’s value, this is because investors and consumers tend to be more interested in companies that actively contribute to CSR initiatives.

THE EFFECT OF PROFITABILITY, CORPORATE SOCIAL RESPONSIBILITY, CORPORATE GOVERNANCE MECHANISMS, AND FIRM SIZE ON DEBT POLICY

Good corporate governance practices can provide additional trust to external parties and investors, especially in corporate debt policy. This research aims to investigate the relationship between profitability, corporate social responsibility, corporate governance mechanisms, and firm size on corporate debt policy. The research method used is quantitative analysis using ordinary least squares and robust regression on data from companies listed on the Jakarta Islamic Index from 2017 to 2022. The results showed that profitability and an independent audit committee significantly negatively affect debt policy, while corporate social responsibility, independent commissioners, and firm size have a positive impact on debt policy. These findings provide important insights for companies in making smart debt policy decisions by business dynamics. The study also confirms the importance of agency theory in explaining how such elements help resolve conflicts of interest between management and shareholders, as well as enhance honesty, transparency, and better risk management in financial decision-making. By strengthening corporate governance and enhancing corporate social responsibility, companies can reduce the risk of conflicts of interest, increase integrity, and promote transparency in financial decision-making. This not only creates a more ethical working environment but also strengthens relationships with investors and society.

Exploring the relationship between corporate governance and firm value: evidence from LQ45 companies (2010-2014)

Companies listed in the LQ45 Index in Indonesia are considered to have good and stable performance. However, the influence of the proportion of independent commissioners, the size of the audit committee, leverage, and profitability on firm value still requires empirical research to provide a clearer picture. This study aims to examine the impact of these variables on firm value for companies listed in the LQ45 Index during the period 2010-2014. A quantitative method with panel data regression was used, and the sample was selected using purposive sampling based on the criteria of companies consistently listed in the LQ45 Index for five consecutive years. The independent variables studied include the proportion of independent commissioners, the size of the audit committee, leverage, and profitability, while firm value is the dependent variable. The results show that, on a partial basis, these variables do not have a significant effect on firm value, with probability values above 0.05. However, simultaneously, the four variables have a significant impact on firm value, with probability values below 0.05, indicating that these factors work together in influencing firm value. These findings indicate the importance of focusing on corporate governance and financial structure as a whole, even though these variables do not have a direct partial impact. This study provides insights for investors to consider external factors and economic policies that may have a greater effect on firm value.

Driving Transparency: The Impact of Corporate Governance on Environmental Disclosure

This study aims to examine the effect of Corporate Governance on Environmental Disclosure with Firm Size and Leverage as control variables. This study uses quantitative methods. This study uses secondary data that is quantitative in the form of annual financial reports listed on the Indonesia Stock Exchange (IDX). The object of this study is to identify energy sector companies listed on the IDX between 2020-2022. The data analysis method uses statistical analysis using the Multiple Linear Regression equation. Logistic regression testing. Sample selection is done by purposive sampling. The results of this study show that institutional ownership does not affect environmental disclosure, Independent commissioners have no effect on environmental disclosure, Audit committees do not affect environmental disclosure, Firm size has no effect on environmental disclosure, and Leverage has no effect on environmental disclosure. The managerial implications of the influence of corporate governance on environmental disclosure can be seen as a need for companies to improve the quality of governance to support environmental transparency and accountability. A competent, independent, and diverse board of directors plays an important role in ensuring that environmental policies are not only met as a formality but also become an integral part of the company's strategy.

Tax Aspect, Governance Mechanism, and New Bank Discretion: Restructuring & Covid-19 Effect

This study investigates the influence of deferred tax expenses and tax retention on earnings management with banking governance mechanisms as moderating variables. The sample for this study comprises 124 data points from banks listed on the IDX between 2019 and 2022. The effects of credit restructuring and the global SARS-CoV-2 pandemic were examined using a moderated regression analysis with a fixed effect model (FEM). The results reveal that deferred tax expenses have a positive impact on discretionary provision, while tax planning has no effect. Additionally, an independent commissioner mitigates the positive effect of deferred tax expenses on earnings management. The study also finds a significant difference in earnings management practices between the pre-Covid-19 period and pandemic periods. These findings suggest that regulators and banking risk control teams should be cautious about tax aspects that may encourage discretionary behavior such as deferred tax liabilities and tax planning during specific periods. Keywords: Deferred Tax Expense, Tax Retention Rate, Governance Mechanism, Earnings Management, Covid-19.