Corporate Governance and Its Influence on Financial Performance of State-Owned Enterprises (Soes) In Indonesia
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 2
Abstract
This study aims to examine the influence of Corporate Governance (CG) index, and CG mechanism on financial performance of SOEs in Indonesia. The sample used in this research is BUMN which included government program program called "nawacita" which is hunting and fishery sector, food sector, mining sector, manufacturing industry sector, and construction/tourism sector. The sample comprises 25 companies for the period 2014-2016, with a total of 50 observations. The dependent variable in this study is the company's financial performance as measured by Net Profit Margin (NPM) and independent variables are CG index, and CG mechanism (Board of Commissioners, Audit Committee, Ownership Structure, and CG Committee). The results show that from the five independent variables, there are three variables that affect on financial performance, namely: CG Index, Board of Commissioners, and CG Committee, while Audit Committee and Ownership Structure have no effect on financial performance of SOEs. It can be implied that the better the CG score will have an impact on the financial performance of SOEs.
Authors and Affiliations
Rini Fatmawati, Djoko Suhardjanto
Keywords
Related Articles
- EP ID EP399860
- DOI -
- Views 103
- Downloads 0
An Identifying Organization Strategy of City Laundry in Ipoh, Perak
The way in which we plan and produce buildings today will influence our energy consumption in the future. This paper identifies an organization strategy of one of the self-service laundry that is situated in Ipoh, Perak,...
Importance of FDI in Economic Growth and Development: A Study of Malaysia
Malaysia is one of the fastest growing developing economies of the Asian countries with a GDP per capita of $9766 and Human Development Index of 0.78 and has been classified as an emerging economy by the World Bank. One...
Role of the demographic variable age of the rural consumer on consumer innovativeness in rural mobile telecom services
Consumer innovativeness is highly regarded tool being used by the marketers for successful diffusion of innovation with the intention to ensure overall profitability and to attain competitive advantage. This study has be...
An Analysis of Market Segmentation (Naelofar Hijab’s Brand)
With the development of world economy, there are so many enterprises occur around the globe. At the same time, the business competition among them is becoming more fiercely and consumers also have different and diverse i...
The effect of Trust, Job Involvement, Organizational Commitment, Knowledge Sharing Behavior to Employee Performance
Increased business competition requires a company has valuable resources, not easily imitated and rare. One of the potential resources that can be a source of competitive advantage is human resources. This study emphasiz...