Corporate Governance of Firm Performance in the Non-Financial Sector for the 2017–2021 Period

Abstract

This study aims to analyze the influence of corporate governance factors on firm performance in non-financial sector companies listed on the Indonesia Stock Exchange (IDX) for 2017-2021. The independent variables in this study are Board Size, Board Independence, and Female Directorship. The control variables are Firm Size and Leverage, while the dependent variables used in this study are Return on Assets (ROA) and Tobin's Q (TBQ). This study uses multiple linear regression analysis with the number of samples that meet the characteristics of 433 companies. The results of this study on ROA show that Board Size is the only significant variable. In contrast, the study's results on TBQ show that Board Size has a significant positive effect and Board Independence has a significant negative effect.

Good Corporate Governance in Non-Financial Sector Companies on the Indonesian Stock Exchange

“…A large board of commissioners with various educational backgrounds and experiences will be able to provide different perspectives in the supervisory process. This large commissioner size will positively influence the ability to supervise, which will impact positive company performance (Khoe et al, 2023). Meanwhile, the size of the board of commissioners has a detrimental impact on the financial success of the company (Lestari et al 2018).…”