Influence Of Corporate Governance Mechanisms Research Articles

PENERAPAN MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN PERBANKAN DI INDONESIA

This research aims to examine the influence of corporate governance mechanisms on company performance. The sample for this research is banking companies listed on the IDX in 2019 - 2021. Data was taken from the company's annual report. Four corporate governance variables, namely the size of the board of directors, the size of the board of commissioners, managerial ownership, and the independent audit committee are used to explain company performance. Regression analysis is used to test the influence of corporate governance mechanisms on company performance. Based on the results of multiple regression analysis, it shows that the size of the Board of Directors and Independent Internal Auditors has a significant effect on banking company performance, while the Size of the Board of Commissioners and Managerial Ownership do not have a significant effect on performance. banking companies listed on the Indonesian Stock Exchange

Good corporate governance, firm performance and COVID-19

PurposeThis research is designed to analyze the effectiveness of the audit committee, nomination and remuneration committee, and ownership structure on company performance and how COVID-19 moderates the influence of these governance mechanisms on company performance.Design/methodology/approach437 annual reports of Indonesian manufacturing companies from 2018 to 2021 were used as research samples using multiple regression analysis and moderated regression analysis.FindingsGood corporate governance plays a role in improving company performance. The presence of COVID-19 affects corporate governance, thereby reducing performance, but good corporate governance can limit this impact.Practical implicationsThis research helps companies understand the effectiveness of the supervisory function in improving company performance. This research provides input for companies, regulators, and policymakers to pay attention to good corporate governance, especially when facing a crisis.Originality/valueTo my knowledge, research that examines corporate governance mechanisms and company performance related to COVID-19 and investigates whether COVID-19 moderates the influence of corporate governance mechanisms on company performance has never been conducted.

Evaluating the influence of corporate governance mechanisms and bank-specific factors on the performance of Nepalese commercial banks

This purpose of the study is to evaluate the influence of corporate governance mechanism factors: board size, board independence, capital adequacy ratio, as well as bank-specific factors: dividend payout ratio and firm size, on the performance of Nepalese commercial banks. The study covered 10 years’ secondary data from 2013/14 to 2022/23, derived from the annual reports and websites of four selected commercial banks that were listed on the Nepal Stock Exchange: Kumari Bank Limited, Himalayan Bank Limited, Prabhu Bank Limited, and Prime Commercial Bank. A non-probability sample method, especially the purposive sampling approach, was used in this study. Earnings per share (EPS) is regarded to be the dependent variable, whereas two elements, namely, corporate governance mechanisms and bank-specific factors, are considered to be independent variables. Data analysis was carried out using the SPSS 25 software, which includes descriptive statistics, Pearson correlation, and multiple linear regression. The empirical results indicate that board size has a favorable influence on EPS, but this association does not reach statistical significance. In contrast, board independency has a notable and statistically significant negative impact on EPS. The capital adequacy ratio is positively correlated with EPS. However, the impact of firm size on EPS is not statistically significant. On the other hand, the dividend payout ratio has a significant positive effect on EPS.

The Influence of Corporate Governance Mechanisms on Fraud Probability: Evidence from Russian Companies

This study examines the impact of corporate governance mechanisms on the probability of corporate fraud occurrence. We evaluate the board size, the degree of independence, and the frequency of meetings of the board and its committees. We also attempt to analyse the board’s gender diversity, but since boards are not gender-diverse in Russia, the significance of this variable cannot be tested. Our empirical study is based on 160 observations of MOEX-listed Russian companies, among which fraudulent behaviour has been revealed in 32 companies over a 5-year period from 2014 to 2018. The relationship between the probability of fraud occurrence and corporate governance was investigated employing a logit model. The data was collected from firms’ annual reports and Thomson Reuters Eikon. Data on fraud cases is based on the evidence from the press (including the leading news sources and specialised websites). We detected a significant negative relationship between nomination and remuneration committee chairmen’s independence, the share of independent directors, the independence of board and audit committee chairmen and the likelihood of fraud. We also discovered the insignificant influence of board and its committees’ size and their meetings’ frequency on fraud probability. This paper contributes to the academic research on the relationship between corporate governance mechanisms and probability of fraud occurrence, emphasizing the special role of the establishment of nomination and remuneration committee chairman independence in Russian companies.

The Influence Of Corporate Governance Mechanisms, Company Growth, And Audit Quality On Going Concern Audit Opinions And Their Impact On Company Value(Empirical Study On Infrastructure, Transportation, And Logistics Companies In The Indonesia Stock Exchange Period 2019-2021)

Topo Da’a is one of sub-ethnic of Kaili tribe in Central Sulawesi, Indonesia. This This study aims to examine the influence of corporate governance mechanisms, company growth, and audit quality on going concern audit opinions and their impact on firm value in infrastructure, transportation, and logistics companies listed on the Indonesia Stock Exchange during the period 2019-2021. The research method used is quantitative descriptive with data analysis through descriptive statistics, classical assumption tests, regression analysis, and model feasibility tests. The analysis results show that the independent variables collectively have a significant effect on going concern audit opinions, but not significant on firm value. The results also indicate that going concern audit opinions do not have a significant direct impact on firm value. Partial test results show that audit quality has a negative and significant effect on going concern audit opinions, while other variables are not significant in influencing the level of going concern audit opinions or firm value. In conclusion, this study provides insights into the factors influencing going concern audit opinions and firm value, providing important implications for practitioners, policymakers, and researchers in the field of accounting and management.

The Effect of Corporate Governance Mechanisms and Banking Performance in Indonesia

The company's main goal is to grow and develop well. To be able to grow, company management must be able to improve company performance which is usually measured by profitability. There are several factors that influence profitability, including corporate governance mechanisms. This research aims to examine the influence of corporate governance mechanisms on banking performance. In this research, corporate governance mechanisms are measured by institutional ownership, managerial ownership, independent board of commissioners, size of the board of directors and size of the audit committee, while banking performance is measured by Return On Assets (ROA). The population in this research is the banking industry listed on the Indonesia Stock Exchange, totaling 46 banks and all of them were taken as samples. The observation period is 4 years (2019 – 2022) with quarterly data. To test the hypothesis, use multiple regression analysis with a significance requirement of 0.05. The data was processed using the SPSS version 25 program. The results of this study show that institutional ownership and the board of directors have no effect on financial performance, while managerial ownership has a significant effect but with a negative coefficient. Meanwhile, independent commissioners and audit committee size have a positive effect on performance.

IFRS innovation, governance practices and firm performance: A new empirical assessment of moderating effects across GCC region

Research background: Despite the large volume of research which has been conducted, the association between corporate governance mechanisms and firm performance remains a controversial issue, particularly with the growth of accounting settings around the world. Purpose of the article: This study assesses the moderating role of International Financial Reporting Standards (IFRS) on the association between corporate governance mechanisms and firm performance in selected Gulf Cooperation Council (GCC) country-listed firms, namely Saudi Arabia, Qatar, Bahrain, and United Arab Emirates over the period 2016–2019. Methods: Importantly, we examine the direct and indirect influences of royal family members on long-term firm performance. We attempt to answer our research questions using robust estimation methods such as pooled OLS, fixed effect, random effect and first difference models. Findings & value added: The outcome reveals a significant and positive impact of firm size and board size on the firm performance in the pooled sample, while there is a significantly negative influence of financial leverage on firm performance. The impact of RFP on FP is seen to be negative and significant while the interaction term is found to be positive and statistically significant. This notably refers to the possibility that royal family directors could play an essential role in influencing the executive management team to fully react to provide extensive voluntary disclosure and comply with IFRS adoption. Our simultaneous quantile regression analysis displays the influence of corporate governance mechanisms on firm performance in various stages. While we observe that IFRS transformation has improved information comparability, policy makes in GCC countries should continue to foster conducive environment to support innovative business practices that help diversify their economies.

Influence of Corporate Governance Mechanisms on Financial Risk and Financial Performance: Evidence from Refinitiv ESG Database

The present study investigates the relationship between corporate governance (CG) mechanisms and the financial risk and performance of the companies enlisted in the Refinitiv ESG Database. The study drew on the agency theory of CG. It evaluated the effect of board diversity (BD), board independence (BI), CEO duality (CEOD), and gender diversity (GD) on financial risk (FR), comprising of credit (CR) and liquidity risk (LR) and financial performance (FP) measured by returns on asset (ROA) while controlling for firm size, age, and tangible assets. Data is obtained from 2009 to 2019 for panel data regression analysis. The study utilized the Hausman test for model specification. The findings specify that the size of the board positively and significantly impacts FR and FP. Gender diversity negatively and significantly affects credit risk and FP. Board independence positively and significantly influenced FP. The study provides significant implications for scholars and practitioners.

Pengaruh Mekanisme Tata Kelola Perusahaan terhadap Kinerja Keuangan Perusahaan: Studi Empiris pada Perusahaan Non Consumer Cyclicals yang Terdaftar di Bursa Efek Indonesia Periode 2019-2021

Purpose: This study examines the effects of corporate governance mechanisms on financial performance. The population in this study is all consumer non-cyclical companies listed on the Indonesia Stock Exchange in 2019-2021). Methodology/approach: The variables used in this study were the company's financial performance as the dependent variable, the Influence of Corporate Governance Mechanisms as independent variables, and the Audit Committee and independent Board of Commissioners as control variables. The sampling technique used was the purposive sampling method and 126 data samples were obtained. The analytical method used is Descriptive Statistical Analysis, Classical Assumption Test, Correlation Test, Multiple Linear Regression Test, and Hypothesis Test Results: The results show that the influence of the Corporate Governance Mechanism with the Proxy of the Audit Committee has no effect on financial performance. The Independent Board of Commissioners has a positive effect on financial performance. In addition to the control variable, Firm Size does not affect financial performance, and Board Size does not affect financial performance.

Pengaruh Corporate Governance Terhadap Manajemen Laba

The aims of this research is to examine the influence of corporate governance mechanism to earning management. This type of research is a descriptive quantitative aims. Corporate governance mechanisms used include instructional ownership, audit committees, and independent board of commissioners. The study samples were 36 consumer goods industry manufacturing companies listed on the Indonesia Stock Exchange, selected using purposive sampling techniques during the 2020-2022 research period. Data were collected using secondary data from consumer goods industry manufacturing companies listed on the Indonesia Stock Exchange. Data analysis methods use multiple regression analysis. The results of the analysis showed that (1) instructional ownership had a significant positive effect on profit management, (2) audit committees had a significant negative effect on profit management, (3) independent board of commissioners had no significant effect on profit management.

The Influence of Corporate Governance Mechanisms on Financial Reporting Fraud (A Study on Property & Real Estate Sector Companies Listed on IDX in the Years 2018-2022)

The objective of this study is to investigate the impact of corporate governance mechanisms on financial statement fraud. The study focuses on board of commissioners, independent commissioners, managerial ownership, institutional ownership, and audit committees. Purposive sampling is used, targeting property and real estate companies listed on the Indonesian Stock Exchange from 2018 to 2022. The sample consists of 16 companies, resulting in a total of 80 data points over a 5-year period. Data analysis techniques include descriptive statistics and logistic regression analysis using SPSS software version 26. The findings reveal that the audit committee plays a positive role in preventing financial statement fraud, while the other factors examined do not exhibit significant influence

The Impact of Corporate Governance Mechanism on Fair Value Measurement in the Indonesian Banking and Financial Industries

Fair value is one of an important measurement since the diffusion of International Financial Reporting Standards around the world. Studies of manager opportunistic behaviors through fair value numbers in developing countries have been overlooked. This study aims to investigate the influence of corporate governance mechanism towards an opportunistic behavior through fair value measurement i.e. fair value inputs level 3. This study applied multiple regression and used samples of banking and financial companies listed in Indonesia Stock Exchange between 2015 and 2019. The corporate governance is proxied by three measurements i.e. managerial ownership, institutional ownership and audit committee educational background. This study finds that managerial ownership and institutional ownership have positive influences on fair value inputs level 3. Meanwhile, the independent commissioners and audit committee educational background have negative influences on fair value inputs level 3. Therefore, this study provides evidence that independent commissioners and audit committee educational background can reduce management opportunistic behaviors which is conducted through fair value measurement.

The Influence of Corporate Governance Mechanism on Performance of Manufacturing Listed Companies in Indonesia Stock Exchange

The Influence of Corporate Governance Mechanism on Performance of Manufacturing Listed Companies in Indonesia Stock Exchange

Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance

PurposeThis study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance.Design/methodology/approachThis study investigates the relationship between corporate tax avoidance and stock price crash risk using the sample consisting of listed firms in Vietnam for the period of 2011–2020 using panel regressions.FindingsThe authors find that there is a positive relationship between tax avoidance and stock price crash risk. Foreign ownership weakens the impacts of tax avoidance on stock price crash risk, while managerial ownership strengthens the impacts. Female Chief Executive Officers (CEOs) and female chairpersons weaken this relationship. Board gender diversity and state ownership have insignificant moderating impacts.Practical implicationsThese findings could help the stock market build better internal monitoring mechanisms to reduce the impacts of tax avoidance on future stock price crash risk. Investors can recognize the characteristics of corporate governance, especially foreign ownership, managerial ownership, female CEOs and female chairpersons when making investment decisions. The policy makers should consider policies to attract foreign investment and support women entrepreneurship.Originality/valueThis paper contributes to the literature on the impacts of tax avoidance on stock price crash risk in emerging countries. This paper is the first to investigate the influence of corporate governance mechanisms including state ownership, foreign ownership, female CEOs and chairpersons and board gender diversity on this relationship.

Governance Mechanism, Intell ectual Capita l Disclosure, a nd Firm Value

This study entitled the influence of corporate governance mechanism on firm value with intellectual capital disclosure as an intervening variable. This study aims to examine the direct and indirect effect of board size, gender diversity, educational background, block holder ownership, and foreign ownership both simultaneously and partially on intellectual capital disclosure and firm value. This study examines the mediating effect of intellectual capital disclosure in the relationship between corporate governance mechanism and firm value. This study used the companies included in intellectual capital intensive industries in Indonesia Stock Exchange as the sample for 2017-2019. The sampling technique used in this study was purposive sampling, with 243 data from 81 companies. Analysis techniques used in this study were statistic descriptive, multiple regression, and path analysis used SPSS 23 for windows. The hypothesis testing results show that corporate governance mechanisms simultaneously influence intellectual capital disclosure (ICD) and firm value. Partially, only board size influences both ICD and substantial value, and educational background only influences strong value. The Sobel test shows that ICD doesn't mediate the effect of all variables related to corporate governance mechanism on firm value.

The role of board composition in CSR disclosure: An empirical analysis in four European countries

The purpose of this study is to provide evidence of the influence of corporate governance mechanisms on corporate social responsibility (CSR) disclosure released by 483 European listed companies after the EU Directive (2014/95) entered into force. The sample includes 483 listed companies, all from the top four European countries by GDP value — Germany, France, Italy, and Spain — that issued CSR reports in the period 2017–2020. The study uses an ordinary least squares regression model to test six hypotheses on the relationship between board characteristics and CSR disclosure. The results of the study confirm that gender diversity, board independence, and CSR committee are positively related to CSR disclosure, while no significant relationship was found with CSR disclosure board meeting, the board size, and CEO duality. This article contributes to academic literature (Pucheta-Martínez & Gallego-Álvarez, 2019; Fuente, García-Sanchez, & Lozano, 2017) by showing the functioning of six board characteristics in influencing CSR disclosure released by European listed companies after EU Directive (2014/95) entered into force. It also provides interesting insights for governments and other regulatory bodies when formulating future guidelines and policies in this regard.

How is the Impact of the Corporate Governance Mechanism on IPO Underpricing? (Empirical Study on Companies conducting IPOs on the Indonesia Stock Exchange 2010-2019)

The purpose of this study is to examine how the influence of corporate governance mechanisms on the level of underpricing of IPO companies in Indonesia. This study examines 301 company IPOs during the period 2010 to 2019 using secondary data collected through annual reports and company IPO prospectus on the Indonesia Stock Exchange. Sampling was done by purposive sampling technique with a final sample of 72 companies. Multiple linear regression analysis was used to examine the impact of corporate governance mechanisms on IPO underpricing. The results showed that female directors had a significant effect on underpricing the company's IPO. while the board of commissioners, the independence of the board of commissioners, the board of directors, the age of the board of directors, the board of the audit committee and the age of the company have no significant effect on the underpricing of the company's IPO.

PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

The purpose of this research is to analyze the influence of corporate governance mechanisms, namely proportion of independent commissioner, audit committee, and foreign ownership toward the earnings management.The populations of this research were the manufacturing companies listed in Indonesian stock exchange 2011-2013. Based on purposive sampling tecnique that sample was taken 70 manufacturing companies.The result of this research show that the proportion of independent commissioner has negative significant influence toward the earnings management, while audit committee and foreign ownership has no significant influence toward the earnings management. The results of this study have implications for investors in the context of decision making based on the company reported earnings. Companies that have a large proportion of independent commissioner is more qualified than the companies that have a small proportion of independent commissioner.

The Influence of Corporate Governance Mechanism, Accounting Conservatism, And Company Size on Earnings Quality

This research aims to provide empirical evidence on the influence of corporate governance mechanism (audit committee, independence board of commissioner, institutional ownership, managerial ownership), accounting conservatism, and company size on earnings quality. Sample used in this research are manufacturing company listed in Indonesia Stock Exchange (IDX) in 2016-2018 using purposive sampling and obtained 29 companies. This research used secondary data of annual report or financial statement obtained from Indonesia Stock Exchange (IDX) or company website in 2016-2018 period. Data were analyzed using multiple regression method. The finding of this research are institutional ownership and managerial ownership partially has positive significant effect to earnings quality. The accounting conservatism and company size partially has negative significant effect to earnings quality. Whether the audit committee and independence board of commissioner has no significant effect to earnings quality. In addition, corporate governance mechanism, accounting conservatism and company size simultaneously has a significant effect to earnings quality.

The impact of corporate governance mechanisms and IFRS on earning management in Saudi Arabia

The current research seeks to assess the influence of corporate governance mechanisms and IFRS adoption on compliance with IFRS, earning management, and financial reporting quality(FRQ). A sample comprises 102 Saudi listed firms for the period spanning from 2014 up to 2019 was used. The study used descriptive statistics, correlation analysis and multivariate analysis to estimate the results. The results reveal that while board size, board meeting and foreign ownership had negative effects on compliance with IFRS, board and audit committee independence exhibited a positive effect. Further, the results demonstrate that there was a sign of earning management under IFRS when a performance magnitude was used. The results also indicate that board and audit committee size, audit committee meeting and managerial ownership had significant negative effects on financial reporting quality however, board and audit committee independence showed a significant positive effect. Importantly, the results found that FRQ under IFRS was better than Saudi GAAP. The present research provides practical implications for policy makers, stock market authority, and academicians. More regulatory and disclosure requirements have to be imposed and financial reporting supervisory board need to be formed. The present research provides a novel contribution to IFRS compliance, earning management, financial reporting quality and corporate governance literature. It has a unique contribution as it attempts to investigate this issue in the context of an emerging economy and a recent IFRS adopter; Saudi Arabia that has special country-specific characteristics. The study also provides an evidence by investigating earning management and financial reporting quality under both sets of accounting standards; IFRS and Saudi GAAP.