Corporate Governance Quality and Company Performance
The background of this research is to determine the motive associated with the low compliance level of the Financial Services Authority report on the Corporate Governance practices at public companies in Indonesia compared to those in other ASEAN countries. This study aims to analyze the quality...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2023-03-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | https://ro.uow.edu.au/aabfj/vol17/iss2/5 |
| Summary: | The background of this research is to determine the motive associated with the low compliance
level of the Financial Services Authority report on the Corporate Governance practices at
public companies in Indonesia compared to those in other ASEAN countries. This study aims
to analyze the quality disclosure and impact of Good Corporate Governance (GCG) practices
by public companies in Indonesia. The differences between this study and the previous are in
terms of measuring the assessed GCG quality based on the ASEAN Corporate Governance
Scorecard (ACGS) and the five major groups of GCG dimensions. Company performance is
measured by accounting and market-based performance, with data collected using the content
analysis method. The research object is the annual report and other related reports published
in 2017 and 2018 by public companies in the consumer goods industry. The quality of Good
Corporate Governance is proportionally calculated by adding the total items disclosed. Data
analysis was performed using descriptive analysis and the Mann-Whitney test. The result
showed that the disclosure of GCG information by consumer goods industries in Indonesia is
low. Furthermore, the relationship between the quality of GCG and company performance has
empirical support for market-based performance measures. This study also provides an
empirical contribution to research on the implementation of GCG on company performance. |
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| ISSN: | 1834-2000 1834-2019 |