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The Influences of Corporate Governance Mechanism towards Company’s Financial Performance

Author

Listed:
  • Ready WICAKSONO

    (Sekolah Tinggi Ilmu Ekonomi Balikpapan, East Kalimantan, Indonesia)

  • Dasriyan SAPUTRA

    (Sekolah Tinggi Ilmu Ekonomi Balikpapan, East Kalimantan, Indonesia)

  • Hairul ANAM

    (Balikpapan University, East Kalimantan, Indonesia)

Abstract

The aim of this study is to find out whether the board of commissioners, board of independent commissioners, audit committee, managerial ownership, institutional ownership, or auditor type has an influence on company’s financial performance. The method used is double regression analysis. The studied population is involving real estate companies which are registered in BEI (Indonesian Stock Exchange). Then, the sample itself is purposive sampling and the data type used is financial report data. The result shows that the board of commissioners and institutional ownership has significant positive influence toward financial performance; meanwhile, board of independent commissioners, audit committee, managerial ownership, and auditor type has no significant influence on financial performance.

Suggested Citation

  • Ready WICAKSONO & Dasriyan SAPUTRA & Hairul ANAM, 2019. "The Influences of Corporate Governance Mechanism towards Company’s Financial Performance," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(155), pages 496-496.
    • Handle: RePEc:aud:audfin:v:17:y:2019:i:155:p:496
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    References listed on IDEAS

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    3. Hasnan Ahmed & András Gábor, 2012. "An examination of the relationship of governance structure and performance: Evidence from banking companies in Bangladesh," Society and Economy, Akadémiai Kiadó, Hungary, vol. 34(4), pages 643-666, December.
    4. Weisbach, Michael S., 1988. "Outside directors and CEO turnover," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 431-460, January.
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    More about this item

    Keywords

    board of commissioners; managerial ownership; institutional ownership;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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