Corporate governance perception index, performance and value of the firm in Indonesia

Zaidirina, N.A.; Lindrianasari, N.A.

doi:10.1504/ijmef.2015.073230

Cited by 9 publications

(10 citation statements)

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“…Two indicators have been used for measuring banks' profitability (the dependent variable); return on assets (ROA) and return on equity (ROE). ROA is defined as the ratio of net profit after tax divided by total assets (e.g., Lee and Hsieh, 2013;Zaidirina and Lindrianasari, 2015;Yeon and Kim, 2013;Bogdan and Ihnatov, 2014;Tiberiu, 2015;Malichov and Mária, 2015;Ozili and Uadiale, 2017;Javaid and Alalawi, 2018;, and ROE is measured by net profit after tax to shareholders' equity (e.g., Eljelly and Elobeed, 2013;Abbas et al, 2014;Kythreotis, 2014;Jedidia, 2016). As shown in Figure 1, the independent variables are classified in this study into two categories;…”

Section: Literature Reviewmentioning

confidence: 99%

Internal and external determinants of listed commercial banks' profitability in India: dynamic GMM approach

Homaidi

Almaqtari

Yahya

et al. 2020

IJMEF

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This study aims to examine the impact of internal and external determinants of 37 commercial banks' profitability listed on Bombay stock exchange (BSE), India for a period from 2008 to 2017. Both static models (pooled, fixed and random effects) and generalised method of moments (GMM) are used. The results show that bank size, assets quality, liquidity, assets management, and net interest margin are important internal determinants which affect ROA. Capital adequacy, deposits, operation efficiency, gross domestic product and inflation rate are found to have a negative significant impact on ROA. Further, the results indicate that capital adequacy, bank size, operation efficiency, gross domestic product and inflation rate have a significant negative influence on ROE. However, assets quality and assets management exhibit a positive effect on ROE but liquidity, deposits, net interest margin, and non-interest income have an insignificant impact on ROE.

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Section: Literature Reviewmentioning

confidence: 99%

Internal and external determinants of listed commercial banks' profitability in India: dynamic GMM approach

Homaidi

Almaqtari

Yahya

et al. 2020

IJMEF

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“…In the Indonesian context, this finding is similar to [12], [13], and [40], which found that CG tends to enhance corporate value. The finding contradicts [16], which asserts that the corporate governance perception index has no relationship with corporate value as measured by Tobin's Q.…”

Section: Regression Resultsmentioning

confidence: 78%

“…Concerning the research examining corporate governance and firm value, previous studies show an inconsistent result. Some studies found corporate governance positively affect firm value [12]- [15], while others do not [16]- [18].…”

Section: Introductionmentioning

confidence: 99%

Political Connection, Corporate Governance, and Firm Value: Indonesian Evidence

Ika¹,

Rachmanti²,

Nugroho³

et al. 2021

Advances in Economics, Business and Management Research

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The article aims to examine the effect of political connections and corporate governance on firm value. Political connections are measured by (1) government share ownership, (2) politically connected president commissioners, and (3) politically connected independent commissioners. Meanwhile, Tobin's Q represents firm value. Seventeen government-owned firms and 17 private firms listed on the Indonesia Stock Exchange in 2013 to 2017 were used as samples, with a total of 170 firms over five years of observation. Results of Moderated regression analysis indicate that government ownership positively affects firm value in all three models. It indicates that companies whose shares are directly owned by the central government (state-owned companies) are likely to increase company value. Politically connected president commissioners and politically connected independent commissioners are likely to enhance corporate value. Corporate governance practices stand-alone do not influence firm value; however, when the variable interacts with politically related independent commissioners, corporate governance also increases firm value significant at 5 per cent level. Meanwhile, the interaction between corporate governance and the politically connected independent commissioner positively affect corporate value. The result indicates that corporate governance is a pure moderating variable that strengthens the positive association between politically related independent commissioners and firm value. This study provides evidence regarding politically connected independent commissioners' role in enhancing firm value in a country where corruption is remaining high, and the law enforcement of property right is weak.

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“…Although some studies have found a positive relationship between corporate governance and performance, other researchers, including Zaidirina and Lindrianasari (2015) and Putra and Simanungkalit (2014), have shown opposite results. Zaidirina and Lindrianasari (2015) indicate that CGPI negatively affects ROE because the evaluation of this index in Indonesia is still voluntary, cost charged and published in media. By contrast, Putra and Simanungkalit (2014) indicate that the implementation of good corporate governance has a key yet indirect role in increasing the value of companies.…”

Section: Hypothesis Developmentmentioning

confidence: 96%

“…IBA has six pillars, namely, These pillars follow the principle of banking governance applied in accordance with the regulations of Bank Indonesia (BIR/PBI), including BIR/PBI number 8/14/PBI/2006, which pertains to changes to Regulation 8/4/PBI/2006 about the implementation of good corporate governance in public banks. Zaidirina and Lindrianasari (2015) find that Indonesian companies have not implemented corporate governance in accordance with their functions. For instance, these companies did not deliver their corporate governance application reports to the BIR.…”

Section: Introductionmentioning

confidence: 97%

Implementation of corporate governance and mandatory disclosure in the Indonesian banking sector: good news or bad news

Zaidirina

Lindrianasari

Bangsawan

2017

IJMEF

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This research examines whether the implementation of corporate governance and mandatory disclosure in the Indonesian banking sector is good or bad. The findings are expected to have value in decision making for various users and to transform corporate governance from a curative action into a corporate culture/value based on the good corporate governance principle, which runs systematically and requires support from internal and external factors. Secondary data from the global financial crisis (2007-2009) are collected through purposive sampling. Multiple regression analysis is performed to test the hypothesis for effects among managerial ownership, audit committee, independent commissioner, mandatory disclosure, return on equity (ROE), return on assets (ROA), non-performing loans (NPL) and rentability. Mandatory disclosure positively affects ROA, independent commissioners and mandatory disclosure positively affects NPL, and independent commissioner and mandatory disclosure negatively affect rentability. 282 Zaidirina et al.

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Corporate governance perception index, performance and value of the firm in Indonesia

Cited by 9 publications

References 0 publications

Internal and external determinants of listed commercial banks' profitability in India: dynamic GMM approach

Internal and external determinants of listed commercial banks' profitability in India: dynamic GMM approach

Political Connection, Corporate Governance, and Firm Value: Indonesian Evidence

Implementation of corporate governance and mandatory disclosure in the Indonesian banking sector: good news or bad news

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