Good Corporate Governance Mechanism Research Articles

THE INFLUENCE OF COMPANY CHARCTERISTICS, GOOD CORPORATE GOVERNANCE, REPUTATION AND SHAREHOLDER PRESSURE ON ENVIRONMENTAL DISCLOSURE

Environmental disclosure is a tool for the company to show its responsibilities to the environment. This study aims to investigate the influence of company characteristics, good corporate governance, reputation, and stakeholder pressure on environmental disclosure. This study uses purposive sampling technique and resulted a final sample of 53 (fifty three) manufacturing companies listed on IDX during 2017-2019. The analytic technique used in this study is multiple linear regression analysis. The result of this study shows that independent commissioners as part of good corporate governance mechanism, reputation and shareholders pressure have significant effect on environmental disclosure. Meanwhile, sales growth, profitability and environmental pressure have not significant effect on environmental disclosure. The conclusion of this study shows companies should consider any information needed by stakeholders, including environmental disclosure. For regulators, the results of this study can be a consideration to collaborate with parties that can increase awareness of the importance of environmental, such as independent commissioners and majority shareholders

Do the ties of corporate executives and directors affect short-term M&A return growth? Evidence from China

This article investigates whether the social ties of corporate executives and directors affect short-term return growth during the announcement period of mergers and acquisitions (M&A). We consider both the educational background and employment history of the corporate executives and directors to measure social ties. Specifically, a text analysis algorithm is employed to match employment history. Then, we choose the cumulative abnormal returns to measure the short-term return growth. Using a sample of 157 M&A deals in the Chinese market from 2000 to 2017, we find that acquirer-target social ties have a significantly negative effect on post-merger performance. However, the negative effect of social ties on post-merger firms’ short-term returns will decrease (become less negative) when the firms have good corporate governance mechanisms. Moreover, social ties could also affect the retention of the target firms. The executives and directors are more likely to remain in the post-acquisition firm when the social ties are high. Our results have important implications for policymakers and corporate governance.

The Effect of Sustainability Disclosure, Good Corporate Governance Mechanism and Intellectual Capital on Return on Assets

This study aims to examine the effects of disclosure of sustainability, corporate governance mechanisms, and intellectual capital on the return on assets. The population of this study is banking companies listed on the IDX in 2016-2019. The samples were selected based on the criteria of 27 companies over a 4-year period, so that 108 samples were obtained. Regression analysis method on panel data using EViews 12 The results of this study indicate that sustainability disclosure has no significant effect on ROA, frequency of board of Commissioners meetings has a positive and significant effect on ROA, institutional ownership has no significant effect on ROA, and intellectual capital has a positive and significant effect on ROA.

ANALYSIS OF THE EFFECT OF GOOD CORPORATE GOVERNANCE MECHANISM ON FINANCIAL PERFORMANCE ON FAMILY COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

This studys aims to determine the analysis of the effect of good corporate governance mechanisms on the company's financial performance. The sample data obtained were 47 companies for the period 2018-2020 which were associated with 5 research variables, namely 4 independent variables: Independent Board of Commissioners, Institutional Ownership, Managerial Ownership, Audit Committee and 1 dependent variable: Company Financial Performance Measured by Return On Assets (ROA). The data analysis methods used were coefficient of determination test, F statistic test and t statistic test. The results showed that the independent board of commissioners variables, institutional ownership and managerial ownership had no effect on the financial performance assessment as measured by ROA. While the audit committee variable has a significant effect on financial performance as measured by ROA. All variables simultaneously have a significant effect on the assessment of financial performance as measured by ROA

The Effect of Good Corporate Governance Mechanism and Firm Size on Firm Value in Property and Real Estate Sector Companies Listed on the Indonesia Stock Exchange for the 2015-2019 Period

This study aims to determine and analyze the effect of institutional ownership, managerial ownership, independent commissioners, and firm size on the firm value of property and real estate sector companies listed on the Indonesia Stock Exchange from 2015 to 2019. The research method used was a secondary method with a quantitative approach. The sample size was 10 companies purposively selected from 77 companies. and the sample used was 10 companies. The data testing used the Multiple Linear Regression test aided with the IBM SPSS Version 23 program. The findings indicate that independent commissioners affect firm value, while institutional ownership, managerial ownership and firm size have no effect on firm value.

Pengaruh Pengungkapan Akuntansi Lingkungan Dan Mekanisme Good Corporate Governance Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019)

ABSTRACTÂ This study aims to determine whether cash turnover affects profitability, whether environmental accounting disclosures and good corporate governance mechanisms affect financial performance and environmental accounting disclosures and whether good corporate governance mechanisms affech financial performance simultaneously. The research was conducted on manufacturing companies listed on the indonesian stock exchange in 2017-2019.This research uses purposive sampling method, with the number of companies 29 x 3 years of research and a total sample of 87. The statistical method used is SPSS multiple linear regression, with partial t statistical test hypothesis testing, simultaneous f test and coefficient of determination test.The results of this study state that: environmental accounting disclosures has a negative effect on financial performance, with a sig value of 0,361. Institutional ownership has a negative effect on financial performance, with a sig valeu of 0,980. Managerial ownership has a positive effect on financial performance, with a sig value of 0,041. The audit committee has a positive and significant effech on financial performance, with a sig valeu of 0,011. Disclosure of environmental accounting, Institutional ownership, Managerial ownership, audit committee, with a sig value of 0,021.Keywords: environmental accounting, Institutional ownership, Managerial ownership, audit committee and financial performance

Influence of the board commissioners’s characteristics on conservatism with gender as a moderating variable

Accounting conservatism can limit the opportunistic behaviour of managers who act to maximize their interests. One of the good corporate governance mechanisms, which is the characteristics of the board of commissioners, can strengthen the implementation of conservatism in the company. In this study, researchers wanted to examine the effect of independent commissioners and audit committees on conservatism with gender as a moderating variable. The research population is publicly listed companies on the Indonesia Stock Exchange during 2015-2019. The sampling technique used is purposive sampling. Research testing uses moderated regression that has model feasibility is tested with the classical assumption test. The results showed that conservatism increased with the presence of an audit committee. The audit committee can provide specific suggestions to be more conservative in making decisions. However, the results showed that conservatism was not affected by the proportion of independent commissioners. The results also show that the presence of women strengthens the relationship of the audit committee to conservatism.

The Effect of Good Corporate Governance Mechanism on Earnings Management

The Effect of Good Corporate Governance Mechanism on Earnings Management

Does Corporate Governance and other Factors Influence Earnings Management? A Study on Indonesia’s Banking Sector

The issue of misreporting financial data and earnings management has become more prominent in recent years. Several studies have been conducted determining the influences of the mechanisms of corporate governance and earnings management in various countries. In this study, it was proven that the existence of a good corporate governance (GCG) mechanism did not suppress earnings management practices in the banking sector industry in Indonesia. However, another factor, dividend policy, can prove effective in suppressing earnings management. The measurement of earnings management in this study was carried out using the Modified Jones model with a population of 43 conventional banks from which research data were taken using a purposive sampling technique sourced from the Indonesia Stock Exchange (IDX). The analysis was carried out using multiple linear regression. The implication of this research is that the implementation of good corporate governance by an entity must be considered given that earnings management practices in Indonesia are still relatively high.

Mediating Effect of Earnings Management on Financial Performance: The Importance of Good Corporate Governance

Purpose: This study investigates the effect of corporate governance on financial performance by taking into account the mediating effect of earnings management. Design: By using a structural equation modeling and partial least squares approach and a sample of listed banks in Indonesia observed between 2010 and 2015, this research proves that good corporate governance has a significant effect on earnings management and, in turn, that earnings management has an adverse impact on a company’s financial performance. Findings: An increase in managerial and institutional ownership leads to a decrease in earnings management, which can improve a company’s financial performance. Originality: This research shows that by applying good corporate governance mechanisms, a company can avoid agency conflicts, minimize earnings manipulation by managers, and obtain reliable company performance valuations.

Pengungkapan Kuantitatif dan Kualitatif Segmen Operasi Berdasarkan PSAK 5 Revisi 2009 (Penyesuaian 2015) di Indonesia

Reporting of operating segments has become an important concern, therefore there is a PSAK 5 regulation which is continuously updated based on IFRS 8 to improve operating segment reporting. This study aims to examine the application of operating segment disclosure and its determinants in public companies in Indonesia.This research method is quantitative method. The operating segment in the financial statements of the LQ 45 Index’s Company in 2016 is analyzed by scoring to the items required by PSAK 5 Revised 2009 (Amandement 2015). The results showed that the majority cozmpany's compliance level of quantitative information is medium level of compliance,. Quantitative disclosure shows the most reported items are profit loss and total assets, meanwhile the least reported item is other non current assets and main customer information . Meanwhile, the most reported item of qualitative disclosure is the main products and services which generate revenues for the operating segments. This study shows that companies disclose more quantitative information than qualitative. In addition, the good corporate governance mechanism that determines the extent of disclosure of operating segments is institutional ownership and the board of directors. This research has implications for operating segment regulators to do better and contribute to the agency theory and signaling theory.

The Effect Of Good Corporate Governance Mechanism On The Financial Perofrmance Of Registered Banking Companies On The Stock Exchange

Corporate governance remains a major problem during the post-financial crisis period in the growing Asian markets like Indonesia. In particular, financial institutions have adopted corporate governance reforms to improve the protection of the interests of shareholders and stakeholders. The purpose of this study was to measure the corporate governance and performance in the banking sector which specifically determine a mechanism of corporate governance. This research is replicated frame the prior researchs. The difference is solely on the theoretical concept change. Independent variables used in this study is the size of the board of directors, the size of the board of commissioners, and independent commissioner. The dependent variable used in this study is banking performance (ROA). Samples from this study is the general banking company located in Indonesia are listed in the Indonesia Stock Exchange (IDX) in the period 2008-2010. This research data come from bank annual reports (annual report) in the period 2008-2010 obtained from the Indonesian Stock Exchange website, the Indonesian Banking Directory, Indonesian Capital Market Directory (ICMD). The analytical method used is multiple linear regression in accordance with the purpose of research which analyzes the influence of independent variables on the dependent variable. Purposive sampling method is used to determine the sample selection. From this method, obtained 26 samples of commercial banks. The total observing period is three years, so the total sample is 60 observations. The study shows that the size of the board of directors and size of the board of commissioners is a positive but not significant to banking performance. Second, the independent commissioners addressing negative and not significant to banking performance.

CORPORATE GOVERNANCE AND MAQASID SHARIA PERFORMANCE ON ISLAMIC BANKS IN INDONESIA

The implementation of good corporate governance (GCG) can be seen in the relationship between the main elements of GCG mechanisms implemented by the board of commissioners (BOC) as supervisors, the board of directors (BOD) as managers, and the sharia supervisory board (SSB) as directors, consultants, and supervisors on sharia compliance of Islamic banks. This study aims to analyze the effect of corporate governance on the maqasid sharia-based performance of Islamic banks (Bank Umum Syariah–BUS) in Indonesia from 2016 to 2019. Corporate governance is proxied by the number of BOC, BOD, the audit committee, and SSB. Based on the purposive sampling criteria, 8 BUS are used as samples in this study, with a total of 32 observations. The type of data used is secondary data in the form of annual reports and GCG reports. The data analysis technique used is multiple regression analysis. The results show that BOC has a negative effect on the maqasid sharia-based performance of Islamic banks. In contrast, BOD positively impacts the maqasid sharia-based performance of Islamic banks. On the other hand, the audit committee and SSB do not affect the maqasid sharia-based performance of Islamic banks.

Analisis Pengaruh Corporate Social Responsibility, Corporate Risk, Capital Intensity Dan Profitability Terhadap Tax Avoidance

The company's behavior in doing tax avoidance is something that has always been a concern. Tax avoidance is a form of response from the company's management in the tax payment strategy which is still in a legal context. The possibility of tax avoidance by a company, making a good Corporate Governance mechanism as a form of corporate responsibility is considered a solution in overcoming managerial embezzlement. Furthermore, in the policies taken by the company, there are still risks that can arise as a reflection of the policy. Due to the uncertainty in certain conditions, the company's risk is considered to have a role in influencing tax avoidance. Tax avoidance is also expected to be effective because of the investment policy, where companies will have lower tax rates. Similarly, the company's profitability is also considered to have an influence on tax avoidance where there is the ability to generate profits from its business activities, so that the company's profitability will also be higher. From the next problem, this study aims to see how the factors that can encourage tax avoidance by companies, namely corporate social responsibility, corporate risk, capital intensity, and profitability as the main focus in it. The results show that corporate risk and capital intensity are the driving factors for tax avoidance behavior, but not with corporate social responsibility and corporate profitability.Keywords: Tax Avoidance, Corporate Social Responsibility, Corporate Risk, Capital Intensity, Profitabily Â

Pengungkapan Corporate Social Responsibility, Mekanisme Good Corporate Governance dan Nilai Perusahaan

This study aims to examine the effect of corporate social responsibility disclosure and good corporate governance mechanisms on firm value. Elements of the good corporate governance mechanism are proxied into audit committees, independent commissioners, institutional ownership, and managerial ownership. The tests were carried out on mining companies listed on the Indonesia Stock Exchange in 2016-2019. The sample was selected using purposive sampling technique. Data were analyzed using multiple linear regression analysis. The results show that the more companies increase the disclosure of corporate social responsibility, the impact on increasing the value of the company. Maximizing the function of the audit committee, institutional ownership, and managerial ownership can increase firm value. However, maximizing the function of independent commissioners has no effect on increasing firm value.
 Keywords : Corporate social responsibility; Good corporate governance; Firm Value.

PENGARUH KOMPLEKSITAS AUDIT, AUDIT TENURE, DAN MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP AUDIT DELAY

This study aims to find empirical evidence related to the effect of audit complexity, audit tenure, and good corporate governance mechanisms on audit delay. The sample used is 222 data from 113 manufacturing companies listed on the indonesia stock exchange in 2016-2018. The variables used are audit complexity, audit tenure, and good corporate governance for audit delay. In this study, all data were processed by linear regression analysis. The results showed that audit complexity had no significant effect on audit delay, audit tenure had a negative effect on audit delay, commissioner competence had no significant effect on audit delay, number of independent commissioners had no significant effect on audit delay, audit committee competence had no significant effect on audit delay, and number of audit committee meetings has no significant effect on audit delay.

Corporate Governance Performance Relationship and the Role of Institutions and Culture: New Evidence from Asian Microfinance Institutions

Purpose: In a globalized world today, Microfinance Institutions (MFIs) are concerned about their corporate governance mechanism to enhance financial and social performance. However, it largely depends on the existing institutional, cultural and economic factors. This paper furthers the debate on the impact of corporate governance on the financial and social performance of Microfinance Institutions (MFIs) in Asian Context.
 Design/Methodology/Approach: The paper utilizes a panel cross-country data set comprised of 183 MFIs in 18 Asian countries over the period of 2010-2018. For empirical analysis, it applies GMM regression technique to control for the endogeniety issue. 
 Findings: The results show that generally corporate governance mechanism contributes more towards social performance of MFIs than the financial performance and a conducive institutional environment enhances both financial and social performance. However, good cultural and economic values contribute only towards the social performance of MFIs.
 Implications/Originality/Value: Since majority of MFIs irrespective of their status are socially oriented. Therefore, good corporate governance mechanism is more effective in enhancing social performance in particular. Progress towards human development contributes to both financial and social performance of MFIs.

Stock Returns Moderated Good Corporate Governance Mechanisms and Firm Value

This study aims to test empirically the effect of a good corporate governance mechanisms on firm value moderated by stock returns. This is quantitative research. The population in this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) from 2015-2019 and uses purposive sampling that consists of 85 samples. The study uses multiple linear regression analysis with STATA ver. 16. The results showed that the board of directors and audit committee have a significant positive effect on firm value. Independent board of commissioners, institutional ownership, and managerial ownership do not affect firm value. Stock returns cannot moderate the relationship between independent of board commissioners, board of directors, audit committee, institutional ownership, and managerial ownership on firm value

Earnings Quality as a link between Corporate Governance Implementation and Firm Performance

ABSTRACT This research finds empirical evidence for the role of earnings quality as a mediator between good corporate governance (GCG) mechanisms and firm performance. The sample is 570 data manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2019. This research used multiple regression analysis. GCG mechanisms in this study measured by the proportion of independent board of commissioners, audit committee expertise, and frequency of audit committee meetings. The result shows that the proportion of independent board of commissioners and audit committee expertise does not affect earnings quality. On the other hand, institutional ownership and frequency of audit committee meetings affect earnings quality. However, the proportion of independent board of commissioners affects company performance. Institutional ownership, the frequency of audit committee meetings, audit committee expertise in accounting, and earnings quality do not affect company performance. This study provides a basis for investors to see the quality of GCG implementation which is a determinant of earnings quality as an investment consideration.

THE EFFECT OF GOOD CORPORATE GOVERNANCE MECHANISMS ON FINANCIAL PERFORMANCE IN CONVENTIONAL COMMERCIAL BANKS LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2015-2019

The study was conducted to obtain empirical evidence related to the effect of good corporate governance mechanisms on the financial performance of banking companies. The population are banking companies listed on the Indonesia Stock Exchange for the 2015-2019 period. Total population of registered banking companies is 45 companies. This research uses purposive sampling technique. From the total of population, only 25 conventional general banking companies meet the criteria. After that multiplied by the research period of five years, then there are 125 samples in this study. The analysis technique used is regression analysis which is a method of analyzing research hypotheses with the aim of testing the overall presence or absence of the influence of one variable with another variable. Based on the results of the study "The Effect of Good Corporate Governance Mechanisms on Financial Performance in Conventional Commercial Banks Listed in Indonesia Stock Exchange Period 2015-2019 " the following conclusions were obtained: The Board of Directors has an effect on the financial performance (Return On Assets) of Conventional Commercial Banks. The Board of Commissioners does not affect the financial performance (Return On Assets) at Conventional Commercial Banks. The Audit Committee has an effect on financial performance (Return On Assets) at Conventional Commercial Banks.
 
 Keywords: good corporate governance, financial performance