Corporate Governance Characteristics and Company Performance

Authors

Ferdinand Dehoutman Saragih, Department of Administration Sciences, Faculty of Social and Political Sciences, Universitas Indonesia, Depok, Indonesia; Indonesia
Bernardus Yuliarto Nugroho, Department of Administration Sciences, Faculty of Social and Political Sciences, Universitas Indonesia, Depok, Indonesia; Indonesia
Umanto Eko, Department of Administration Sciences, Faculty of Social and Political Sciences, Universitas Indonesia, Depok, Indonesia; Indonesia

Abstract

The research analyzes the determinant of corporate governance characteristic in relation to company performance in family firms listed in Indonesia Stock Exchange in the period of 2004-2009. The research uses quantitative approach, explanatory type and uses numerical data as secondary data obtained from various sources. The result shows that only PER variable is significantly influenced by corporate governance characteristic with proxies of ownerships, board size, and board composition, and controlled with the variables of sales, firm age, firm leverage, tangibility, firm size, growth, and debt in public firms listed in Indonesia Stock Exchange in the period of 2004-2009; in general, investors basically perceive company performance from the market value ratio in the form of company’s stock price interchange instead of the profitability ratio with the proxies of ROA and ROE; the variables of ownerships, board size, and board composition statistically do not affect ROA, ROE, and PER.

Recommended Citation

Saragih, Ferdinand Dehoutman; Nugroho, Bernardus Yuliarto; and Eko, Umanto (2013) "Corporate Governance Characteristics and Company Performance," BISNIS & BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi: Vol. 19: No. 1, Article 6.
DOI: 10.20476/jbb.v19i1.1881
Available at: https://scholarhub.ui.ac.id/jbb/vol19/iss1/6