The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence: Evidence Among Indonesian Sharia Compliant Companies
This study investigates the effect of the quality of internal corporate governance mechanisms and investor confidence. Various efforts for corporate governance reform have been conducted in order to enhance investor confidence. Previous evidences showed that investors do not always concern with i...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/23892/1/CBMM%202017%201591%201600.pdf |
| _version_ | 1803628622405173248 |
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| author | Wijayanti, Risna Yahya, Sofri Haron, Harashid |
| author_facet | Wijayanti, Risna Yahya, Sofri Haron, Harashid |
| author_sort | Wijayanti, Risna |
| collection | UUM |
| description | This study investigates the effect of the quality of internal corporate governance mechanisms and
investor confidence. Various efforts for corporate governance reform have been conducted in order to
enhance investor confidence. Previous evidences showed that investors do not always concern with
information disclosure about internal corporate governance mechanisms. As such this study attempted to investigate the linkage between information about four attributes reflecting the quality of internal corporate governance mechanisms and investor confidence.Based on 227 Sharia compliant companies included in List of Sharia Securities (Daftar Efek Syariah/DES) in Indonesia, this study found that firms
size has significant influence on investor confidence.Meanwhile, the quality of internal corporate governance mechanism has also significant effect on investor confidence but with different direction.Board Structure and Board Composition as two out of four attributes for the quality of internal corporate governance mechanisms were positively related, while the other two attributes that are Board Process and Board Characteristics were negatively related to investors’ confidence.This evidence implied that the quality of internal corporate governance mechanisms have some influence on investors’ confidence. |
| first_indexed | 2024-07-04T06:24:53Z |
| format | Conference or Workshop Item |
| id | uum-23892 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:24:53Z |
| publishDate | 2017 |
| record_format | dspace |
| spelling | uum-238922018-04-15T04:22:32Z https://repo.uum.edu.my/id/eprint/23892/ The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence: Evidence Among Indonesian Sharia Compliant Companies Wijayanti, Risna Yahya, Sofri Haron, Harashid HD28 Management. Industrial Management This study investigates the effect of the quality of internal corporate governance mechanisms and investor confidence. Various efforts for corporate governance reform have been conducted in order to enhance investor confidence. Previous evidences showed that investors do not always concern with information disclosure about internal corporate governance mechanisms. As such this study attempted to investigate the linkage between information about four attributes reflecting the quality of internal corporate governance mechanisms and investor confidence.Based on 227 Sharia compliant companies included in List of Sharia Securities (Daftar Efek Syariah/DES) in Indonesia, this study found that firms size has significant influence on investor confidence.Meanwhile, the quality of internal corporate governance mechanism has also significant effect on investor confidence but with different direction.Board Structure and Board Composition as two out of four attributes for the quality of internal corporate governance mechanisms were positively related, while the other two attributes that are Board Process and Board Characteristics were negatively related to investors’ confidence.This evidence implied that the quality of internal corporate governance mechanisms have some influence on investors’ confidence. 2017-10-29 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/23892/1/CBMM%202017%201591%201600.pdf Wijayanti, Risna and Yahya, Sofri and Haron, Harashid (2017) The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence: Evidence Among Indonesian Sharia Compliant Companies. In: 4th Conference on Business Management, 29 - 30 Oktober 2017, The Gurney Resprt Hotel & Recidences Penang, Malaysia. |
| spellingShingle | HD28 Management. Industrial Management Wijayanti, Risna Yahya, Sofri Haron, Harashid The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence: Evidence Among Indonesian Sharia Compliant Companies |
| title | The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence:
Evidence Among Indonesian Sharia Compliant Companies |
| title_full | The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence:
Evidence Among Indonesian Sharia Compliant Companies |
| title_fullStr | The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence:
Evidence Among Indonesian Sharia Compliant Companies |
| title_full_unstemmed | The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence:
Evidence Among Indonesian Sharia Compliant Companies |
| title_short | The Effect of Quality of Internal Corporate Governance Mechanisms on Investors’ Confidence:
Evidence Among Indonesian Sharia Compliant Companies |
| title_sort | effect of quality of internal corporate governance mechanisms on investors confidence evidence among indonesian sharia compliant companies |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/23892/1/CBMM%202017%201591%201600.pdf |
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