Independence Of Commissioners Research Articles

Independent Commissioners: How Independent?

Companies are managed by directors whose decisions and actions are overseen by a board of commissioners, which includes both commissioners and independent commissioners. An independent commissioner is a party that shares no relationships with the company's directors or the company itself. However, the independence of independent commissioners in performing their duties is questionable. This research examined the independence of independent commissioners using a normative juridical research method based on primary data, secondary data, and other relevant information. The juridical research method focuses on existing realities or implementation in the real world compared to the normative expectations or standards. The results showed that independent commissioners are not entirely independent, particularly in state-owned enterprises where connections with affiliates persist. Additionally, independent commissioners often had direct or indirect relationships with the government, with some being former civil servants or government supporters. Meanwhile, private companies tend to appoint commissioners based on prior personal relationships, such as friendships, rather than familial or business affiliations. Despite these connections, independent commissioners remain crucial for stakeholders interested in the company's governance. This research highlights the complexities surrounding the independence of commissioners and underscores the need for clearer definitions and enforcement of independence in corporate governance.

Board and Director Traits, Company Growth's Impact on Green Accounting Policy Moderated by Media Exposure

This research aims to examine the gender characteristics, nationality, independence of the board of commissioners and directors in relation to green accounting policies with media exposure as a moderating variable. The population and sample of the study are mining companies listed on the Indonesia Stock Exchange (BEI) during the period 2020–2022. The usable population for the research, based on the required data, consists of 29 companies with observations over three years. The analysis method employed is panel data analysis using the EViews application. The research findings demonstrate that the variables of nationality characteristics and company growth have a significant positive influence. However, gender characteristics and the independence of commissioners and directors do not affect green accounting policies. The moderating variable, media exposure, only moderates the variables of nationality characteristics and company growth.

Legislative Regulation of Certain Guarantees of the Status of the Human Rights Commissioner in the Constituent Entities of the Russian Federation (Based on Materials of the State Duma)

Legislative Regulation of Certain Guarantees of the Status of the Human Rights Commissioner in the Constituent Entities of the Russian Federation (Based on Materials of the State Duma)

Debunking the Myth of Independence of the NPRC Commissioners in Zimbabwe

Scholars have long been interested in understanding the functions and efficacy of Truth and Reconciliation Commissions (TRCs) in promoting post-conflict justice and reconciliation, particularly in countries emerging from violent conflict. However, less well understood is how issues of autonomy and independence of commissioners condition the efficacy of TRCs. In joining this debate, I contend that how and why certain people are selected to be commissioners of TRCs has an impact on the legitimacy and success or lack thereof of such bodies. The article unpicks how and why the social status of the commissioners, their level of professionalism, independence and their political leanings (neutrality) impact on the integrity, efficacy and legitimacy of TRCs. Drawing on the Zimbabwean case study, I show how loyalty, past and current allegiance, selection criteria (methods) or appointment and conduct of commissioners shape the efficacy of the National Peace and Reconciliation Commission (NPRC). Such an investigation is relevant in contributing to a deeper understanding of the inner workings and legitimacy of TRCs in Africa and beyond as they seek to promote justice and reconciliation in post-conflict contexts.

Pengujian Praktik Manajemen Laba Dengan Kualitas Audit Sebagai Variabel Pemoderasi

This study aims to obtain empirical evidence of the effect of the independence of commissioners and audit committees on earnings management and to test audit quality as a moderating variable can strengthen the relationship between the independence of commissioners and audit committees on earnings management or weaken the relationship between the independence of commissioners and audit committees on earnings management. Audit quality as a moderating variable, because high quality auditors strengthen supervision of management so that the profits reported in the financial statements are more transparant and free from misstatements. Manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2020 were used as samples and 94 companies were selected using purposive sampling method. This study uses path analysis to test the hypothesis. The results showed that the independence of commissioners and audit committees can reduce earnings management behavior by management. Supervisory activities by independent commissioners and audit committees are more effective in reducing opportunistic behavior by management, so that information can be more transparent and have higher quality. This study also provides results that higher audit quality can strengthen the relationship between audit committee independence and earnings management. This study provides information to investors and companies that to prevent earnings management, they can add commissioners and audit committee members from outside the company and also use qualified auditors in providing opinions.

Multi - Industry Directorship dan Firm Value Pada Perusahaan Dalam Indeks Sri Kehati

The purpose of this study is to examine the existence of the SRI Kehati index in Indonesia Stock Exchange through testing governance variables (multi-industry commissioners and directorships, independence of commissioners) in companies of the SRI Kehati index as a driver of firm value. The reseach is a quantitative research by pannel data with random effect models. The results showed that the presence of directors handle multiple industries was able to encourage an increase in form value. Likewise, independent commisioners are able to increase firm value. The results of this study contribute to an overview of the level of readliness of companies in implementing the Sustainability Disclosure Standardand and indicate factors that can encourage an increase in firm value by paying more attention to social and environmental issues so that it can benefit public companies in general in the context of developing sustainability in Indonesia. Keywords: Busy Director, Multy-Industry Directorship, Rating SRI Kehati, Sustainability

The Effect Of Thin Capitalization And Foreign Ownership Structure On Tax Aggressiveness Moderated By The Independence Of The Commissioner

The paper aims to examine the effect of thin capitalization and foreign ownership structure on tax aggressiveness and the extent to which the independence of commissioners can moderate the effect of thin capitalization and foreign ownership structure on tax aggressiveness. This study uses a purposive sampling method which produces 810 observations from 240 manufacturing companies listed on the IDX from 2016 to 2020. The study was conducted using multiple regression analysis with a moderating effect (moderated regression analysis). The result of this research is thin capitalization does not have a significant effect on tax aggressiveness. but the structure of foreign ownership affects tax aggressiveness on the measurement of earnings in the form of cash. Independent commissioners significantly moderate the effect of thin capitalization and foreign ownership structure on tax aggressiveness. The influence of independent commissioners on the relationship of foreign ownership structure to tax aggressiveness is negative. indicating that the supervisory role of independent commissioners is weakened when dealing with foreign ownership.

Does board of commissioners independence still relevant in tax avoidance monitoring?

This study aims to examine does independence of the Board of Commissioner (BOC) is still relevant as a corporate governance mechanism regarding monitoring managers’ activity, such as aggressive in financial reporting and tax avoidance during financial distress condition. The focus of this study is listed companies on the Indonesia Stock Exchange (IDX), particularly on Mining and Consumer Good Industry sector for period 2016 until 2018. Using multiple linear regression analysis, this study documents that Independency of board commissioner has significant effect on manager’s activity in avoiding tax, however this study failed to document that independency moderates the effect of financial distress and financial reporting aggressiveness on tax avoidance. In addition, this study find that financial distress and financial re-porting aggressiveness positively affect tax avoidance. This study contributes on two ways, first, it adds empirical evidence regarding the relevancy of board of commissioner’s independency as a measure of corporate governance mechanism to monitor managers’ activities in avoiding tax. Second, it also adds evidence that independence is unable to moderates the effect of financial distress and financial reporting aggressiveness on tax avoidance activities performed by managers. In brief, this study implies that the independence of BoC, solely as a measure of corporate governance mechanism is less relevant in a current situation especially when the company facing financial distress conditions and managers’ aggressiveness in financial reporting. Managers should more pay attention to the discretion of tax avoidance activities particularly when facing financial distress condition. The results also imply that regulatory bodies, for instance, Stock Exchange Supervisory Board under the Indonesian Financial Services Authority should reconsider or reformation the concept of independence of Board Commissioners.

RESTATEMENT AND TAX AGGRESSIVENESS: DOES BUSINESS STRATEGY MATTER?

This study examines the effect of business strategy on tax aggressiveness and restatement. Prospectors are more aggressive in choosing accounting policies relative to defenders, thereby increasing the likelihood of restatements. Prospectors are also predicted to be more aggressive in tax planning than defenders. Sample was hand collected from Indonesian public firms in the period of 2014-2018 by using a purposive sampling method. As much as 1630 firm-year observations were gathered during the sample period and subsequently analyzed by employing multiple regressions analysis. A number of control variables are included in the regression model to control for differences in corporate governance system and firm characteristics. The corporate governance variables are Board of Commissioners independence, Audit Committee expertise, and institutional ownership. The firm characteristics variables are firm size, leverage, growth, and profitability. Results show that business strategy has an implication on tax aggressiveness but no effect on restatement. For control variables, all corporate governance variables are not significantly associated with restatement. On the other hand, Board of Commissioners independence, Audit Committee expertise, and institutional ownership are significantly associated with tax aggressiveness. As for company characteristics, size, leverage, growth rate, and profitability are not associated with restatement, but they are associated, except leverage, with tax aggressiveness.

THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

AbstractThe corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property & Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange. The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.Keywords: Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance.

Pengaruh Mekanisme Corporate Governance Terhadap Konservatisme Akuntansi Dengan Intensitas Fair Value Sebagai Pemoderasi

The purpose of this research is to examine the effect of corporate governance mechanisms that are moderated by fair value on the level of accounting conservatism. The corporate governance mechanism consists of an independent commissioner, an institutional ownership structure, a foreign ownership structure and audit quality. Research conducted on manufacturing companies and financial companies listed on the Stock Exchange period 2016-2018, purposive sampling method was used to determine the research sample so that 93 manufacturing companies and 52 financial companies was obtained. Hypothesis testing is done by multiple regression methods. The results showed that the independence of commissioners had a positive effect on the level of accounting conservatism. In manufacturing companies, institutional ownership structure does not affect the level of conservatism, whereas in financial companies, institutional ownership structure influences the level of accounting conservatism. Other corporate governance mechanisms, foreign ownership and audit quality, do not influence the level of accounting conservatism in both manufacturing and financial companies. The intensity of fair value in both sectors of the company has a negative effect, or weakens the relationship of corporate governance mechanisms to the level of accounting conservatism Keywords: Accounting Conservatism; Fair Value; Corporate Governance

The effects of Corporate Governance, Audit Quality, and Conservatism on Loan Collateral Requirements

In competitive credit markets, borrowers and lenders have equal information on default risks. Under these circumstances, loan collateral are less important in credit decision-making. But in emerging credit market, like Indonesia, borrowers and lenders do not possess equal information on firms’ future prospect, making use of collateral in mitigating default risk have become common practice. Despite strong theoretical support for the use of collateral to protect lenders from default risk, excessive protection may have a negative effect on the debt markets. However, some Indonesian firms are not required to provide collateral for bank debts. This study examines the effect of Board of Commissioners independence, governance committees, audit quality, and conservatism on the likelihood of using loan collateral. Using slovin formula, as much as 785 firm listed in Indonesia Stock Exchange were collected during sample period of 2012-2015. Logistic regression analysis suggest that firms with higher Board of Commissioners independence, having separate governance committee, hire Big 4 auditors, apply conservative accounting policies are less likely to provide loan collateral.

KARAKTERISTIK DEWAN KOMISARIS DAN IDIOSYNCRATIC VOLATILITY

CAPM has been used as a widely accepted model forstock valuation. According to CAPM, stock risks comprise of systematic and unsystematic risks. The latter is also called idiosyncratic risk. Since idiosyncratic riskis induced by firm-specific factors, it can be removed by forming portfolio. However, some empirical findings in various capital markets indicate that idiosyncratic risk cannot be completely eliminated. Thus, stock price movements may also be influenced by firm-specific factors. Volatility of stock price movements induced by firm- specific information are commonly called idiosyncratic volatility. The objective of this research is to provide evidence of the association between Board of Commissioners characteristics and idiosyncratic volatility in Indonesian capital market. More specifically, the characteristics include Board of Commissioners independence, size, gender diversity, busyness, and meeting frequency. Using sample of indonesian public firms in 2013-2017, regression analysis show that Board size and meeting frequency are inversely related with idiosyncratic volatility. However, Board independence, gender diversity, and busyness have no effect on idiosyncratic volatility. The practical implication of this study is that firms should establish Board of Commissioners with larger membership and urge Board of Commissioners to conduct more frequent meeting to discuss financial reporting-related issues.

ANALISIS FAKTOR-FAKTOR PENGUNGKAPAN INTELLECTUAL CAPITAL (PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BEI TAHUN 2011-2017)

The research of this thesis is entitled analysis of determinants of intellectual capital disclosure in Pharmaceutical Companies listed on the Indonesia Stock Exchange in 2011-2017. The purpose of this study was to determine the effect of the audit committee size, the independence of the audit committee, the number of financial experts in the audit committee, the number of audit committee meetings, the size of the board of commissioners, the independence of the board of commissioners, the number of board of commissioner meetings and institutional ownership of disclosure of pharmaceutical companies' intellectual capital. The research population is pharmaceutical companies listed on the Stock Exchange for the period 2011-2017. The research sample consisted of 11 pharmaceutical companies with 7 years of observation. Sample data are 77 financial report data. The research method uses quantitative methods. The research design consisted of descriptive design and causal design. Data analysis using Multiple Linear Regression Analysis using SPSS Version 20. statistical program. Based on the results of data processing, it is known that the Adjusted R Square value is 0.462. This shows that variations in the Intellectual Capital Disclosure variable can be explained by 46.2% by Audit Committee Size variables, Audit Committee Independence, Number of Audit Committee Financial Experts, Number of Audit Committee Meetings, Board of Commissioners Size, Board of Commissioners Independence, Number of Board of Commissioners Meetings , Institutional ownership and company size as control variables while the remainder is explained by other variables not examined. The results of testing the hypothesis, it is known that the size of the audit committee, the independence of the audit committee, the number of audit committee financial experts, the size of the board of commissioners and the independence of the board of commissioners have a positive effect on disclosure of intellectual capital Audit committee meetings have no effect on disclosure of intellectual capital.

MEKANISME TATA KELOLA KORPORAT: MAMPUKAH MENURUNKAN COST OF EQUITY CAPITAL?

This objective of this study is to analyze the effect of good corporate governance mechanism that consist of board of commissioners’ independence, information transparency, and audit committee on the cost of equity capital. Board of commissioners independence, information transparency, and audit committee are able to role as the mechanism good corporate governance. The result showed that cost of equity capital is effected by board of commissioners independence, information transparency, and audit committee. Thereby in order to reduce cost of equity capital those three variable must be well managed by means of good corporate governance effective.