PENGARUH BOARD DIVERSITY, CEO CHARACTERISTICS DAN BOARD COMMITTEES TERHADAP FIRM PERFORMANCE PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA
Abstract
The research assesses the impact of board diversity, CEO characteristics, and board committees on the firm performance of the Indonesia stock exchange (IDX). To test the effects of this characteristic, data samples were obtained from 39 companies from 2017 to 2021, using the data panel regression model. The findings suggest that there are the effects of board diversity associated with board size and independent share against ROA then the independent share and the women share against Tobin's Q. Furthermore, the firm performance can be affected by CEO Characteristics especially by CEO age variables which affect ROA and Tobin's Q. In the case of board committees, the audit committee is found to have an effect on Tobin's Q but not on ROA. The remuneration committee has significant impact on ROA but not on Tobin's Q and nomination committee affected ROA and Tobin's Q. Based on these findings, it can be said that increasing corporate governance practices from a banking company registered in IDX will enhance its performance and value in that corporate.
Keywords : Firm Performance; Board Diversity; CEO Characteristics; Board Committees; Indonesia Stock Exchange
References
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Prashar, A. (2021). Corporate boards and firm performance : a meta-analytic approach to examine the impact of contextual factors. https://doi.org/10.1108/IJOEM-10-2019-0860
Ujunwa, A., Nwakoby, I., & Ugbam, C. O. (2012). Corporate board diversity and firm performance: Evidence from Nigeria. Corporate Ownership and Control, 9(2 Continued 1), 216–223. https://doi.org/10.22495/cocv9i2c1art6
Vintilă, G., Onofrei, M., Gherghina, Ş. C., & Vintil, G. (2015). The Effects of Corporate Board and CEO Characteristics on Firm Value : Empirical Evidence from Listed Companies on the Bucharest Stock Exchange The Effects of Corporate Board and CEO Characteristics on Firm Value : Empirical Evidence from Listed Companies. 0938(October). https://doi.org/10.1080/1540496X.2015.1073518
Wijethilake, C., & Ekanayake, A. (2020). CEO duality and firm performance : the moderating roles of CEO informal power and board involvements. 16(8), 1453–1474. https://doi.org/10.1108/SRJ-12-2018-0321.
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Al-Matari, E. M., Al-Swidi, A. K., & Bt Fadzil, F. H. (2014). The effect of board of directors characteristics, audit committee characteristics and executive committee characteristics on firm performance in Oman: An empirical study. Asian Social Science, 10(11), 149–171. https://doi.org/10.5539/ass.v10n11p149
Ali, A., Alim, W., Ahmed, J., & Nisar, S. (2022). Yoke of corporate governance and firm performance : A study of listed firms in Pakistan. XIII(1), 8–18. https://doi.org/10.18843/ijcms/v13i1/02
Alqatan, A., Chbib, I., & Hussainey, K. (2019). How does board structure impact on firm performance in the UK? Corporate Board Role Duties and Composition, 15(2), 18–27. https://doi.org/10.22495/cbv15i2art2
Becht, M., & Bolton, P. (2007). CORPORATE LAW AND GOVERNANCE *. 2(07). https://doi.org/10.1016/S1574-0730(07)02012-9
Bin Khidmat, W., Ayub Khan, M., & Ullah, H. (2020). The Effect of Board Diversity on Firm Performance: Evidence from Chinese L isted Companies. Indian Journal of Corporate Governance, 13(1), 9–33. https://doi.org/10.1177/0974686220923793
Borlea, S. N., Achim, M. V., & Mare, C. (2017). Board characteristics and firm performances in emerging economies. Lessons from Romania. Economic Research-Ekonomska Istrazivanja, 30(1), 55–75. https://doi.org/10.1080/1331677X.2017.1291359
Carmo, C., Alves, S., & Quaresma, B. (2022). Women on Boards in Portuguese Listed Companies: Does Gender Diversity Influence Financial Performance? Sustainability, 14(10), 6186. https://doi.org/10.3390/su14106186
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate Governance , Board Diversity , and Firm Value. 38.
Chan, A. W. H., & Cheung, H. Y. (2012). Cultural Dimensions, Ethical Sensitivity, and Corporate Governance. Journal of Business Ethics, 110(1), 45–59. https://doi.org/10.1007/s10551-011-1146-9
Ciavarella, A. (2017). Board Diversity and Firm Performance Across Europe. SSRN Electronic Journal, December. https://doi.org/10.2139/ssrn.3084114
Edward, R. (1986). Stockholders and Stakeholders : A New Perspective on Corporate Governance.
Farhan, A., Obaid, S. N., & Azlan, H. (2017). Corporate governance effect on firms ’ performance – evidence from the UAE. https://doi.org/10.1108/JEAS-01-2016-0002
Fariha, R., Hossain, M., & Ghosh, R. (2022). Board characteristics , audit committee attributes and firm performance : empirical evidence from emerging economy. 7(1), 84–96. https://doi.org/10.1108/AJAR-11-2020-0115
Ferrero-ferrero, I., & Fernandez-izquierdo, M. A. (2015). Age Diversity : An Empirical Study in the Board of Directors. May. https://doi.org/10.1080/01969722.2015.1012894
Abad Diaz, David; Lucas-Perez, Maria Encarnacion; Minguez-Vera, Antonio; Guirao, Y; Jose. (2017). www.econstor.eu.
Jayasena, S., & Jayathilaka, P. G. A. . (2021). Does Board Structure in Commercial Banks Impact their Performance? International Journal of Accounting, 1(December), 83–97. https://doi.org/10.4038/ija.v1i2.33
Kang, H., Cheng, M., & Gray, S. J. (2007). Corporate governance and board composition: Diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), 194–207. https://doi.org/10.1111/j.1467-8683.2007.00554.x
Khan, A. P., Johl, S. K., & Johl, S. (2021). Does adoption of ISO 56002-2019 and green innovation reporting enhance the firm sustainable development goal performance ? An emerging paradigm. April, 0–15. https://doi.org/10.1002/bse.2779
Komisioner, D., & Jasa, O. (2015). Otoritas jasa keuangan republik indonesia. 1–8.
Lam, T. yan, & Lee, S. kam. (2012). Family ownership, board committees and firm performance: Evidence from Hong Kong. Corporate Governance (Bingley), 12(3), 353–366. https://doi.org/10.1108/14720701211234609
Martín-Ugedo, J. F., Mínguez-Vera, A., & Rossi, F. (2019). Female directors and firm performance in Italian and Spanish listed firms: Does masculinity matter? Academia Revista Latinoamericana de Administracion, 32(3), 411–436. https://doi.org/10.1108/ARLA-06-2018-0124
Mihail, B. A., Dumitrescu, D., Micu, C. D., & Lobda, A. (2022). The Impact of Board Diversity , CEO Characteristics , and Board Committees on Financial Performance in the Case of Romanian Companies.
Nahar Abdullah, S. (2004). Board composition, CEO duality and performance among Malaysian listed companies. Corporate Governance: The International Journal of Business in Society, 4(4), 47–61. https://doi.org/10.1108/14720700410558871
Nasional, K., & Governansi, K. (2021). Pedoman ini diterbitkan oleh Komite Nasional Kebijakan Governansi.
Prashar, A. (2021). Corporate boards and firm performance : a meta-analytic approach to examine the impact of contextual factors. https://doi.org/10.1108/IJOEM-10-2019-0860
Ujunwa, A., Nwakoby, I., & Ugbam, C. O. (2012). Corporate board diversity and firm performance: Evidence from Nigeria. Corporate Ownership and Control, 9(2 Continued 1), 216–223. https://doi.org/10.22495/cocv9i2c1art6
Vintilă, G., Onofrei, M., Gherghina, Ş. C., & Vintil, G. (2015). The Effects of Corporate Board and CEO Characteristics on Firm Value : Empirical Evidence from Listed Companies on the Bucharest Stock Exchange The Effects of Corporate Board and CEO Characteristics on Firm Value : Empirical Evidence from Listed Companies. 0938(October). https://doi.org/10.1080/1540496X.2015.1073518
Wijethilake, C., & Ekanayake, A. (2020). CEO duality and firm performance : the moderating roles of CEO informal power and board involvements. 16(8), 1453–1474. https://doi.org/10.1108/SRJ-12-2018-0321.
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Published
2022-09-25
How to Cite
Hidayat, R., Lestari, H., & Margaretha, F. (2022). PENGARUH BOARD DIVERSITY, CEO CHARACTERISTICS DAN BOARD COMMITTEES TERHADAP FIRM PERFORMANCE PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 88-110. https://doi.org/10.31955/mea.v6i3.2291
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Articles
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