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VOL. 5, ISSUE 2 (2023)
The effect of corporate governance on financial performance moderated by company size (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2018 – 2021)
Authors
Anindita Widyastuti, Marsono
Abstract
This research aims to examine the influence of
corporate governance mechanisms on firm financial performance. Corporate
governance is proxied by the board of directors' size, percentage of
independent commissioners, institutional ownership, foreign ownership,
concentrated ownership, and audit committee's size. Financial performance is
measured by Return on Assets and Tobin's Q. The data used is secondary data
obtained from annual reports and financial statements manufacturing firms
listed on the Indonesian Stock Exchange (IDX) during 2018 - 2021. The sample
selection method used was purposive. The data analysis technique used is
multiple linear regression test and moderated regression analysis. The results
showed that partially board of directors' size has a positive significant
effect on return on assets, institutional ownership has a positive
insignificant effect on return on assets, concentrated ownership has a negative
significant effect on Tobin's Q, Simultaneously, corporate governance
mechanisms have a positive significant effect on financial performance.
Meanwhile, firm size is found to have a moderating role to the effect of
concentrated ownership on return on assets and the effect of percentage of
independent commissioners on Tobin's Q.
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Pages:15-23
How to cite this article:
Anindita Widyastuti, Marsono "The effect of corporate governance on financial performance moderated by company size (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2018 – 2021)". International Journal of Management and Economics, Vol 5, Issue 2, 2023, Pages 15-23
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