Supervisory Board and Company Borrowing: The Case of Developing Economics

Ilona, Desi; Zaitul,; Ethika, Ethika; Faculty, E

doi:10.6000/1929-7092.2019.08.63

Cited by 5 publications

(5 citation statements)

References 44 publications

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“…The Continental European and Anglo-Saxon systems are the two ways to implement a company's board structure (Ilona et al, 2019;Zaitul et al, 2021). Two corporate governance frameworks-a market-based framework for the one-tier Board structure and a group-based framework for the Continental European system-are described differently (Rashid, 2018).…”

Section: Governance Boardmentioning

confidence: 99%

“…The continental European corporate governance system uses French Civil law and twotier board systems (Hamdi et al, 2021). Even though an Indonesian company uses the continental European corporate system, it has a unique model in which the board of commissioners or supervisory board appoints the management board or board of directors, and the supervisory board is selected and dismissed by shareholders (Ilona et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Zaitul,

Ilona,

Abd-Mutalib

et al. 2024

EKUITAS (Jurnal Ekonomi dan Keuangan)

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This study describes the diversity of directors' nationality from company attributes: company leverage, growth, size, age, and sub-sector. This study also analyses the association between directors' nationality diversity and the performance of Indonesia's listed companies using two measurements: ROA and ROS (accounting performance) and Stock return and Tobin’s Q (market performance). This study used 3,290 observations in 235 companies (from 2004 to 2017). As a result, the level of director nationality diversity varies based on the company size (large vs. small), company age (old vs. young), company growth (high vs. low), company leverage (high vs. low), company sub-sector (central vs. manufacturing vs. trading & service sub-sector). In addition, the diversity of the supervisory board nationality is negatively related to the ROA and Tobin’s Q and positively associated with stock return. The company breaks the negative effect of supervisory board nationality diversity by reducing the periods foreign directors need to familiarise themselves with newly discovered circumstances, such as culture, systems, and language. The company suggests increasing the supervisory board nationality diversity regarding the stock return as detailed theoretical and practical implications.

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Section: Governance Boardmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Zaitul,

Ilona,

Abd-Mutalib

et al. 2024

EKUITAS (Jurnal Ekonomi dan Keuangan)

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“…Selain ratifikasi, legislatif juga mempunyai peran penting lainnya yaitu pengawasan terhadap eksekusi yang telah di lakukan oleh eksekutif (Fama & Jensen, 1983b). Legislatif dalam konteks corporate governance dinamakan supervisory board pada sistem dua dewan (two-tiers board system) dan board of director pada sistem satu dewan (one-tier board system) (Ilona et al, 2019;Zaitul, Elfiswandi, et al, 2019;Zaitul, Melmusi, et al, 2019;Zaitul & Ilona, 2018. Legislatif sebagai dewan pengawas juga mempunyai peran lainnya seperti penasehat dan terlibat dalam penyusunan rencana strategis perusahaan (Goodstein et al, 1994).…”

Section: Pendahuluanunclassified

Karakteristik Anggota DPR dan Kinerja Pemerintah Daerah

Zaitul¹,

Jefrita

Rifa

2021

akurasi

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This study aim to invetigate the relationship between legistlatif’s characteristics and Local Government Performance. Legislative’s characteristic is proxy by size, age, gender and education background of local legislatif ‘s members. Agency theory is used to underpinned this relationship. The secondary data is used and gathered through finance ministry’s website, and general election commissions. Using eighty-one local governments, multivariate regression analyis is applied to analyse the data. classical assumption test is assessed before interpretating the regression result. Based on the t statistic and p-value, all hypohoteses are rejected . however, local government revenue has negative effect on local government performance. Theortically, agency theory could not be used to understand the phonomena. Practical implication discuss in this paper.

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“…Ideally, using a two-tier board system will effectively achieve company outcomes for shareholders and other stakeholders (Shan and McIver, 2011). Furthermore, Indonesia is one of the countries that adopt a two-tier board system (Ilona et al, 2019;Zaitul, Elfiswandib, et al, 2019;Zaitul, Melmusi, et al, 2019;Zaitul and Ilona, 2018). Darmadi (2016) states that Indonesia's corporate governance system already exists, but the practice is still left behind.…”

Section: Introductionmentioning

confidence: 99%

Board governance diversity and international decision of Indonesia’s service companies

Zaitul¹,

Melmusi²,

Ilona³

2021

EEA

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The objective of this study is to examine the relationship between Board of Commissioners diversity and international decision of service companies. Specifically, this study investigates the effect of ethnic, nationality, qualification, and experience diversity of Board of Commissioners on international decision. Company with high Board of Commissioners diversity tends to have more effective in monitoring the Management Board and therefore reduce the agency cost as well as the company performance. 99 service companies listed in Indonesia’s stock exchange is participated in this study. As this study using the multivariate regression analysis, the classical assumptions must be satisfied. The result shows that the ethnic, qualification and experience diversity of Board of Commissioners have a significant effect on international decision. In addition, company size tends to have a better position to sell in the foreign market. Company with higher leverage is likely to have a higher international decision. Theoretically, this reseach implies that board governance diversity in unique two-tier board model could also be explained by agency theory. In addition, this finding shows that the company can increase the international decision by increasing the qualification and experience diversity of Board of Commissioners. However, the Board of Commissioners ethnic diversity should be reduced to increase the international desicion.

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Supervisory Board and Company Borrowing: The Case of Developing Economics

Cited by 5 publications

References 44 publications

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Director's Nationality Diversity and Company Performance: The Evidence From Emerging Market

Karakteristik Anggota DPR dan Kinerja Pemerintah Daerah

Board governance diversity and international decision of Indonesia’s service companies

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