Articles

The Influence of Good Corporate Governance on Firm Value before and during COVID-19 in Indonesia

/in /by

This study investigates the impact of independent commissioners, audit committees, institutional ownership, and managerial ownership on the firm value of Indonesian manufacturing companies, both before and during the COVID-19 pandemic. Employing a quantitative research design and associative research approach, our findings reveal a positive relationship between independent commissioners and firm value, supporting existing literature on the role of independent commissioners in enhancing corporate governance. Conversely, the analysis indicates a negative influence of audit committees on firm value, emphasizing the need for a balanced approach to their formation to avoid undue restrictions on managerial autonomy. The examination of institutional and managerial ownership’s effects on firm value yields inconclusive results, suggesting the need for further exploration. Additionally, our study evaluates the impact of the COVID-19 pandemic on firm value using a dummy variable and a t-test, revealing no significant change in values during the pandemic. The focus on the Indonesian manufacturing sector provides valuable context, suggesting potential sector-specific resilience to pandemic challenges. Overall, this research contributes nuanced insights into corporate governance dynamics and their resilience in the face of unprecedented global events.

Investment Strategy, Manager Characteristics, and Corporate Governance Effects on Mutual Fund Performance: A Study of PT Asuransi Jiwasraya (Persero) During Period of 2013-2018

/in /by

This study aims to examine the relationships between investment strategies, investment manager characteristics, and corporate governance on the investment performance of PT Asuransi Jiwasraya (Persero)’s mutual funds investment from 2013 to 2018. The year 2013 marked the introduction of a new bancassurance product, which necessitated PT AJS to generate higher returns on investment in a short-term period. The sudden change in management in 2018 brought the mismanagement case to public attention. The analysis utilized a cross-sectional multilinear regression approach, allowing for the examination of multiple independent variables and their relationship with the dependent variable. Data for the study is collected from various sources, including annual reports, financial reports, prospectuses, and court documents. The relationships are assessed using seven regression models, with measures such as mean return, standard deviation, beta, Sharpe ratio, Treynor ratio, Jensen’s Alpha, and state loss as the dependent variables. The regression models are estimated using SPSS software, and assumptions of linearity, independence of errors, homoscedasticity, and absence of multicollinearity are checked to ensure the validity of the analysis. Hypothesis testing is conducted to determine the statistical significance of the relationships, and measures such as R-squared, adjusted R-squared, and F-statistic are used to assess the overall goodness-of-fit of the models. The findings indicate that the models for mean return, Treynor ratio, Jensen’s Alpha, and state loss are statistically significant, demonstrating a strong correlation and high explanatory power. The results suggest that value investing and smaller market capitalization of constituent stocks have a positive association with investment performance. Additionally, reducing the presence of dividend-paying and suspect stocks is beneficial for investment performance. Factors such as management fees, education background, and years of experience show significant positive relationships, while investment horizon, asset size, and past performance have significant negative relationships with investment performance. The age of the investment manager does not exhibit a significant relationship. Furthermore, corporate governance demonstrates a negative relationship with investment performance. These findings provide valuable insights for improving investment performance and offer important lessons to prevent similar cases of mismanagement of investment funds in the future.

Effect of Corporate Governance on Performance of SACCOs in Rubanda District South Western Uganda

/in /by

The goal of this study was to evaluate the effect of corporate governance on the performance of SACCOs, in Rukiga District. SACCO governance was a predictor variable and performance of SACCOs was the study’s outcome variables. A cross-sectional survey was the precursor to the study. Quantitative and qualitative analysis were combined with the collection and analysis of data from 109 respondents. Descriptive, bivariate, and multivariate analyses were used in the analysis, which was done on three different levels. Frequency tables were employed to portray the data as descriptive analysis required presentation of a single variable and its characteristics. A Pearson correlation matrix was used to determine the correlations between the predictor factors and the dependent variable at the bivariate level. The modified predictor variables for corporate governance were regressed against the dependent variable at the multivariate level (performance of SACCOs). To fit the data, a linear regression model was employed. Corporate governance (coef. = 0. 532) has a positive influence on the performance of SACCO in Rukiga District, according to research results from the regression model. The key finding of this study is that corporate governance significantly affects SACCOS performance. The study therefore suggests that in order to ensure the sustainability of SACCO performance in Rubanda District, greater emphasis should be placed on implementing corporate governance.

The Effects of Corporate Governance, Intellectual Capital and Company Size on Financial Performance in Manufacturing Companies Lister on the Indonesia Stock Exchange for the Period of 2017-2021 in the Consumer Goods Industry Sector

/in /by

This study aims to determine the relationship between corporate governance, intellectual capital, and company size with the financial performance of manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) in 2017–2021. The objective of this study, which falls under the genre of causal investigation, is to undertake research to identify the cause of one or more issues. This research sample approach employed purposeful sampling, which led to the collection of 70 firms. The analysis method used in this study is panel data regression with the E views program. The study’s findings suggest that the board of commissioners has a mixed impact on financial success. Financial performance is partially unaffected by the audit committee. Financial performance is partially influenced favorably by intellectual capital and firm size.

Earning Management of Corporate Social Responsibility Mediation and Corporate Governance on Financial Performance (An Empirical Study on Idx Mining Corporates 2016-2020)

/in /by

This study aims to examine and analyze corporate social responsibility and corporate governance on financial performance and, through earning management as a mediating variable. Financial performance is the dependent variable which is proxied by ROA and MVA. The independent variables in this study were corporate social responsibility as proxied by 91 GRI 4.0 indicators and corporate governance as proxied by independent commissioners and institutional ownership. Earning management as a mediating variable proxied by discretionary accruals. This study uses a sample of 35 mining companies listed on the Indonesia Stock Exchange from 2016 to 2020. The data used in this study is secondary data analyzed using a multiple linear regression analysis path models with the help of SPSS 25 software, and corporate governance has a positive and significant effect on financial performance. Meanwhile, earning management has a negative and significant effect on financial performance. Corporate social responsibility has a positive and significant effect on earning management, while corporate governance has a negative and significant effect on earning management. Earning management mediates full corporate social responsibility on financial performance, while the board of commissioners partially mediates on financial performance.

Legal Protection of Minority Shareholders under Corporate Governance Process

/in /by

In recent days, most of the corporate are failing in managing business effectively and the major cause for this is conflicts between majority and minority shareholders of the company which lead to direct or indirect destruction of business at the end. Even though, there are certain laws and provisions made for the sake of minority shareholders, those are enforced well and needs to make them as utmost safeguards to minority shareholders.

In this paper, we will discuss the issues for conflict including rights of minority shareholders as well as roles and responsibilities of shareholders by analyzing possible solution for conflicts between majority and minority shareholder.