Analysis of Determinants of Corporate Governance Rating (Empirical Study of Companies Listed in the CGPI Index Report 2015 – 2020)
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 08
Abstract
The monetary crisis that hit Indonesia in 1998 added to the confidence of economists and company management to implement Good Corporate Governance (GCG) practices in Indonesia. The implementation of good corporate governance is expected to be able to create added value for all interested parties. This study aims to determine the effect of ownership concentration, investment opportunity, leverage, profitability, and firm size on corporate governance rating. Using annual data for the period January 1, 2015 – December 31, 2020, with Panel Data Regression analysis with the Eviews 11 tool. The panel data regression test results show that leverage, profitability, and company size as macroeconomic variables influence corporate governance rating. Meanwhile, Ownership Concentration and Investment Opportunity do not affect corporate governance rating.
Authors and Affiliations
Reny Meiliana Sari, Dr. Augustina Kurniasih, ME
Keywords
Related Articles
- EP ID EP709334
- DOI https://doi.org/10.47191/jefms/v5-i8-37
- Views 90
- Downloads 0
Analysis of Corn Supply In Indonesia
Corn is an important food commodity in Indonesia. Corn production in Indonesia is influenced by various factors, including price, land area, soybean price, subsidized NPK fertilizer price, post-harvest agricultural machi...
Is it Always Desirable and Useful for Third Parties to Disproportionately Increase Disclosure Outside The Company?
The provision of information to outsiders has had a slow but steady increase in recent decades. At the beginning of the 1900s, a right to information for third parties outside the company and shareholders was not recogni...
The Effect of Financial Performance and Budget Ratcheting on Capital Expenditure Allocation in Districts/Cities of Central Java Province
This study examines the effect of regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting on the allocation of capital expenditure in local governments in Central J...
Examining the Business Growth Challenges and Prospects of Small and Medium Enterprises (SMEs): A Case Study of Garden Township Metal Fabricators, Lusaka
The study was aimed at examining the business growth challenges and prospects of small and medium enterprises (SMEs) with a particular focus on metal fabricators in Garden Township, Lusaka, Zambia. In doing so, specific...
Profit Management Affected by Tax Planning, Determined Taxes and Company Size
This study aims to determine the effect of tax planning, deferred tax, and company size on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. This study is a quantitative...