2021 : Ownership Structure and Corporate Governance Towards The Performance of Listed Companies In Indonesia

Geodita Woro Bramanti S.T., M.Eng.Sc

Year

2021

Published in

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External link

Type

RESEARCH

Keywords

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Abstract

The ownership structure of a company can be a factor that can affect the way the company operates and it will have an impact on company performance which aims to increase the value of the company itself. The negative side of the separation of ownership between owners and managers of the company can lead to differences in interests that will lead to agency conflicts. This agency conflict can be resolved through the implementation of corporate governance. Therefore, this study aims to study the ownership structure represented by family, state, and foreign ownership, as well as the implementation of corporate governance as represented by the size of the board of commissioners and independent commissioners in improving company performance. The method used in this research is panel data regression with a sample size of 123 companies that meet the research criteria and are listed on the Indonesia Stock Exchange from 2014 to 2018. The results show that the structure of family, state, and foreign ownership has a significant effect. positive effect on company performance. Meanwhile, the implementation of corporate governance as represented by the size of the board of commissioners and independent commissioners does not have a significant effect on company performance. The conclusion of this research is that the company is expected to be able to maintain controlling shareholder ownership as stipulated in the Indonesian Financial Services Authority regulations (POJK) by not selling or differentiating shares. Companies are also required to have a board of commissioners consisting of at least two people and a minimum of 30% independent commissioners from the total number of board members, which is also stated in the POJK.