The Effect of Board of Commissioners on Family Firms Performance in Indonesia
This study aims to examine the effect of internal corporate governance mechanisms namely the board of commissioners and independent commissioners on family firm performance. This study used return on equity (ROE) as measurement for firm performance. The samples of this study were 122 family controll...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
American Scientific Publishers
2016
|
| Subjects: |
| _version_ | 1825804961401798656 |
|---|---|
| author | Robin, . Amran, Noor Afza |
| author_facet | Robin, . Amran, Noor Afza |
| author_sort | Robin, . |
| collection | UUM |
| description | This study aims to examine the effect of internal corporate governance mechanisms namely the board of commissioners and independent commissioners on family firm performance. This study used return on equity (ROE) as measurement for firm performance. The samples of this study were 122 family controlled companies which were listed in Indonesia Stock Exchange from 2010 to 2014. The finding reveals that independent commissioners have a positive relationship with firm performance.The larger number of independent commissioner can provide unbiased views and strategy that were not found in family directors. However, the board of commissioners size have no significant relationship with firm performance. The board commissioners who stay for a long time in the company may build a good relationship with directors which may impact on the decision-making and independent judgement of board commissioners in terms of enhancing the firm performance. Further, these finding also enrich the literatures and knowledge on family firm’s performance in Indonesia. |
| first_indexed | 2024-07-04T06:24:10Z |
| format | Article |
| id | uum-23648 |
| institution | Universiti Utara Malaysia |
| last_indexed | 2024-07-04T06:24:10Z |
| publishDate | 2016 |
| publisher | American Scientific Publishers |
| record_format | eprints |
| spelling | uum-236482018-03-15T01:34:53Z https://repo.uum.edu.my/id/eprint/23648/ The Effect of Board of Commissioners on Family Firms Performance in Indonesia Robin, . Amran, Noor Afza HD28 Management. Industrial Management This study aims to examine the effect of internal corporate governance mechanisms namely the board of commissioners and independent commissioners on family firm performance. This study used return on equity (ROE) as measurement for firm performance. The samples of this study were 122 family controlled companies which were listed in Indonesia Stock Exchange from 2010 to 2014. The finding reveals that independent commissioners have a positive relationship with firm performance.The larger number of independent commissioner can provide unbiased views and strategy that were not found in family directors. However, the board of commissioners size have no significant relationship with firm performance. The board commissioners who stay for a long time in the company may build a good relationship with directors which may impact on the decision-making and independent judgement of board commissioners in terms of enhancing the firm performance. Further, these finding also enrich the literatures and knowledge on family firm’s performance in Indonesia. American Scientific Publishers 2016 Article PeerReviewed Robin, . and Amran, Noor Afza (2016) The Effect of Board of Commissioners on Family Firms Performance in Indonesia. Advanced Science Letters, 22 (12). pp. 4142-4145. ISSN 1936-6612 http://doi.org/10.1166/asl.2016.8083 doi:10.1166/asl.2016.8083 doi:10.1166/asl.2016.8083 |
| spellingShingle | HD28 Management. Industrial Management Robin, . Amran, Noor Afza The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title | The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title_full | The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title_fullStr | The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title_full_unstemmed | The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title_short | The Effect of Board of Commissioners on Family Firms Performance in Indonesia |
| title_sort | effect of board of commissioners on family firms performance in indonesia |
| topic | HD28 Management. Industrial Management |
| work_keys_str_mv | AT robin theeffectofboardofcommissionersonfamilyfirmsperformanceinindonesia AT amrannoorafza theeffectofboardofcommissionersonfamilyfirmsperformanceinindonesia AT robin effectofboardofcommissionersonfamilyfirmsperformanceinindonesia AT amrannoorafza effectofboardofcommissionersonfamilyfirmsperformanceinindonesia |