Pengaruh good corporate governance, leverage, dan ukuran perusahaan terhadap kinerja perusahaan perbankan di Indonesia
Main Article Content
Abstract
This study aims to determine the factors that affect firm’s performance. The samples used in this study were banking companies that registered on Indonesian Stock Exchange (IDX) during period 2016 – 2021. The independent variables in this study are board meetings, audit committee, managerial ownership, institutional ownership, leverage, and firm size. The dependent variable used in this study was firm’s performance that measured by ROE. 13 banking companies used in this study were selected using purposive sampling technique. The model used in this study is random effect model. The result show that board meetings and firm size have significant effect on firm’s performance, while audit committee, managerial ownership, institutional ownership, and leverage have no effect on firm’s performance. The results of this study are expected to provide input for financial managers and investors to be more considerate of board meeting frequency and company size, because these two factors can affect the firm’s performance.
Article Details
References
Agustia, D., Dianawati, W., and R.A., Dwi Indah. (2018). Managerial ownership, corporate social responsibility disclosure and corporate performance. Management of Sustainable Development Sibiu, Romania, 10(2), 67 – 71. https://doi.org/10.2478/msd-2019-0011
Agyei-Mensah, B. K. (2018). Impact of corporate governance attributes and financial reporting lag on corporate financial performance. African Journal of Economic and Management Studies, 9(3), 349 – 366. https://doi.org/10.1108/AJEMS-08-2017-0205
Al-Janadi, Y. (2021). Ownership structure and firm performance in the middle east: A meta-analysis. Journal of Risk and Financial Management, 14(12), 577. https://doi.org/10.3390/jrfm14120577
Al-Okaily, J. and Naueihed, S. (2020). Audit committee effectiveness and family firms: Impact on performance. Management Decision, 58(6), 1021 – 1034. https://doi.org/10.1108/MD-04-2018-0422
Andriani P. R. and Rudianto, D. (2019). Pengaruh tingkat likuiditas, profitabilitas, dan leverage terhadap nilai perusahaan. Journal of Enterpreneurship, Management, and Industry, 2(1), 48 – 60. http://jurnal.bakrie.ac.id/index.php/JEMI/article/view/1848
Ayyuba, H., Bambale, A., Ibrahim, M., and Sulaiman, S. (2019). Effect of financial performance, capital structure and firm size on firms’ value of insurance companies in Nigeria. Journal of Finance, Accounting and Management, 10(1), 57 – 74.
Butt, U. (2020). Profit, financial leverage and corporate governance. International Journal of Managerial Finance, 16(2), 203 – 223. https://doi.org/10.1108/IJMF-03-2019-0091
Chanatup, S., Aujirapongpan, S., and Ritkaew, S. (2020). The influence of corporate governance mechanism on the intergrated financial reporting and investment risk of Thai listed companies. Enterpreneurship and Sustainability Center, 7(4), 2818 – 2831. https://doi.org/10.9770/jesi.2020.7.4(16)
Chaudhary, N. and Gakhar, K. (2018). Corporate governance and financial performance with a perspective on board size and frequency of board meetings : Empirical evidence from India. Drishtikon: A Management Journal, 9(1), 37 – 64.
https://www.proquest.com/docview/2024035224/6DF95DAF09FF4592PQ/1?accountid=49910
Deswara, N. P., Krisnawati, A., and Saraswati, Rr. S. (2021). Pengaruh Good Corporate Governance terhadap kinerja keuangan. JIMEA, Jurnal Ilmiah MEA, 5(1), 1569 – 1578.
https://doi.org/10.31955/mea.vol5.iss1.pp1569-1578
Fariha, R., Hossain, Md. M., and Ghosh, R. (2022). Board characteristics, audit committee attributes and firm performance: Empirical evidence from emerging economy. Asian Journal of Accounting Research, 7(1), 84 – 96. https://doi.org/10.1108/AJAR-11-2020-0115
Husna, A. dan Satria, I. (2019). Effect of Return on Assets, Debt to Asset Ratio, Current Ratio, Firm Size and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues, 9(5), 50 – 54. https://doi.org/10.32479/ijefi.8595
Ichsani, S., Putri, A. R. P. T, Aprianto, F., Hermawan, H., and Hanavi, R. (2021). Effect of Good Corporate Governance mechanism on company profitability ratios. Turkish Journal of Computer and Mathematics Education, 12(8), 1793 – 1805.
https://www.proquest.com/docview/2623457875/fulltextPDF/B161CF4AFFC74633PQ/2?accountid=49910
Khan, H. U. R., Khidmat, W. B., Al Hares, O., Muhammad, N., and Saleem, K. (2020). Corporate governance quality, ownership structure, agency costs and firm performance. evidence from an emerging economy. Journal of Risk and Financial Management, 13(7), 154.
https://doi.org/10.3390/jrfm13070154
Lawal, O. D., Agbi, E. S., and Mustapha, L. O. (2018). Effect of ownership structure on financial performance of listed insurance firms in Nigeria. Journal of Accounting, Finance and Auditing Studies, 4(3), 123 – 148. https://www.proquest.com/scholarly-journals/effect-ownership-structure-on-financial/docview/2111088994/se-2
Manurung, E., Effrida, and Gondowonto, A. J. (2019). Effect of financial performance, good corporate governance and corporate size on corporate value in food and beverages. International Journal of Economics and Financial Issues, 9(6), 100 – 105. https://doi.org/10.32479/ijefi.8828
Mirza, N. I., Malik, Q. A., and Mahmood, Ch. K. (2020). The value of board diversity in the relationship of corporate governance and investment decisions of Pakistani firms. Journal of Open Innovation: Technology, Market, and Complexity, 6 (4), 146. https://doi.org/10.3390/joitmc6040146
My Hanh, L. T., Ting, I. W. K., Kweh, Q. L., and Hoanh, L. T. H. (2018). Board frequency and financial performance: a case of listed firms in Vietnam. International Journal of Business and Society, 19(2), 464 – 472. https://www.proquest.com/scholarly-journals/board-meeting-frequency-financial-performance/docview/2392464113/se-2?accountid=49910
Prashar, A., and Gupta, P. (2021). Corporate Boards and Firm Performance: A Meta-Analytic Approach to Examine the Impact of Contextual Factors. International Journal of Emerging Markets, 16(7), 1454 – 1478. https://doi.org/10.1108/IJOEM-10-2019-0860
Saputri, N. A., Widayanti, R., and Damayanti, R. (2019). Analisis penerapan Good Corporate Governance terhadap kinerja keuangan pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2014 – 2017. Edunomika, 3 (2), 352 – 363. https://dx.doi.org/10.29040/jie.v3i02.489
Shao, L. (2019). Dynamic study of corporate governance structure and firm performance in China evidence from 2001 – 2015. Chinese Management Studies, 13 (2), 299 – 317. https://doi.org/10.1108/CMS-08-2017-0217
Soelton, M., Ramli, Y., Anggraini, D., and Khosasi, D. (2020). Implementing Good Corporate Governance to engage corporate social responsibility in financial performance. European Research Studies Journal, 23(1), 239 – 258. https://www.proquest.com/scholarly-journals/implementing-good-corporate-governance-engage/docview/2371573495/se-2?accountid=49910
Surjandari, D. A., Minanari, M., and Nurlaelawati, L. (2021). The effect of good corporate governance, leverage, firm size on earning management evidence from Indonesia. International Journal of Commerce and Finance, 7(2), 168 – 183. https://www.proquest.com/scholarly-journals/good-corporate-governance-leverage-firm-size/docview/2607552318/se-2
Tanveer, M., Mushtaq, N., and Awan, M. Z. (2020). Effect of earning management linked advertising expenditures, board attributes and ownership type on performance of food sector firms of Pakistan. Journal of Business & Economics, 12 (2), 67 – 81. https://doi.org/10.5311/JBE.2020.12.14
Uddin, M. N., Hosen, M., Chowdhury, M. M., Tabassum, T., and Mazumder, M. A. (2021). Does corporate governance influence firm value in Bangladesh? A panel data analysis. Business Administration and Management, 24(2), 84 – 100. https://doi.org/10.15240/tul/001/2021-2-006
Wang, Y., Abbasi, K., Babajide, B., and Yekini, K. C. (2020). Corporate governance mechanism and firm performance: Evidence from the emerging market following the revised CG code. Emerald Publishing, 20(1), 158 – 174. https://doi.org/10.1108/CG-07-2018-0244
Yameen, M., Farhan, N. H., and Tabash, M. I. (2019). The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector. Journal of International Studies, 12(1), 208 – 228. https://doi.org/10.14254/2071-8330.2019/12-1/14
Yusra, I., Hadya, R., Begawati, N., Istiqomah, L., Afriyeni, and Kurniasih, N. (2019). Panel data model estimation: The effect of managerial ownership, capital structure, and company size on corporate value. Journal of Physic: Conference Series, 1175(1), 1 – 6.