Expropriation by the controlling shareholders on firm value in the context of Indonesia: corporate governance as moderating variable

Gunardi, Ardi; Rahmawati, Rahmawati; Rossi, Matteo; Widyaningsih, Ika Utami

doi:10.1504/ijmfa.2017.10009973

Cited by 3 publications

(2 citation statements)

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“…The results suggest that corporate governance index is not a moderating variable. [39] investigates the moderating effect of corporate governance as measured by independent commissioners' existence on the relationship between cash flow right leverage and firm value. The results reveal that corporate governance is not a moderator.…”

Section: The Moderating Effect Of Corporate Governancementioning

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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Section: The Moderating Effect Of Corporate Governancementioning

confidence: 99%

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

Ika¹,

Rachmanti²,

Nugroho³

et al. 2021

Advances in Economics, Business and Management Research

View full text Add to dashboard Cite

show abstract

“…Corporate governance is a set of mechanisms to ensure that company assets are used efficiently so that suppliers are guaranteed their investments and stakeholders are protected against inappropriate asset distribution activities by management. The implementation of adequate corporate governance results in enhanced monitoring of management (García Lara et al, 2007;Widyaningsih et al, 2017;Honggowati et al, 2017). Yu (2008) studies the direct effect of an analyst's role in corporate governance.…”

Section: Literature Reviewmentioning

confidence: 99%

Information asymmetry and accounting conservatism: Does analyst coverage moderate the results?

Isniawati¹,

Rahmawati²,

Gunardi³

2018

Journal of International Studies

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This study aims to examine the effect of information asymmetry on accounting conservatism moderated by analyst coverage. Net assets are measured to determine accounting conservatism. Information asymmetry is measured with the bid-ask spread, whereas analyst coverage is calculated using a proxy of analyst following. The sample in this research consists of manufacturing companies listed on the Indonesia Stock Exchange from 2010 to 2014. Data are gathered using purposive random sampling method, and the financial statement reports of 124 companies are selected. Regression test results are consistent with the hypothesis, that is, a positive correlation exists between information asymmetry and accounting conservatism. Additional evidence shows that the level of analyst coverage affects the relationship between information asymmetry and accounting conservatism. A high level of analyst coverage reduces the level of information asymmetry and decreases that of conservatism in financial statements.

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Company characteristics and risk management disclosure: empirical study of manufacturing companies listed on the Indonesia stock exchange

Soebyakto¹,

Mukhtaruddin²,

Relasari³

et al. 2018

Problems and Perspectives in Management

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This research aims to obtain empirical evidence on the effect of company characteritics on risk management disclosure (RMD) from the annual reports of manufacturing companies. The sample consists of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2010–2012. The total sample included 72 companies with three years observation and the examined firms reached 216. Results indicate that independent variables (firm size, profitability, leverage, public ownership, management ownership, and business complexity) have a significant effect on RMD. However, the hypotheses test with partial t-test indicate different results. Firm size (FS) and management ownership (MO) have significant effects, whereas leverage (LEV) has a negative and significant effect on RMD. Other variables, namely profitability (PRO), public ownership (PO), and business complexity (BC), have no significant effect on RMD.

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Expropriation by the controlling shareholders on firm value in the context of Indonesia: corporate governance as moderating variable

Cited by 3 publications

References 0 publications

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

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

Information asymmetry and accounting conservatism: Does analyst coverage moderate the results?

Company characteristics and risk management disclosure: empirical study of manufacturing companies listed on the Indonesia stock exchange

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