Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance Internal Mechanisms, Directors' Remuneration, and Financial Performance: Evidence from Indonesia Banking Industries
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance Internal Mechanisms, Directors' Remuneration, and Financial Performance: Evidence from Indonesia Banking Industries
Corporate Governance Internal Mechanisms, Directors' Remuneration, and Financial Performance: Evidence from Indonesia Banking Industries
Subject
performance of the company, corporate governance internal mechanism, director’s remuneration
Description
This study was conducted to analyze the effect of the corporate corporate governance mechanism and director remuneration on the company's performance. This study examines the internal mechanism comprising the size of the board of directors, internal and external directors, the Audit Committee, the Nomination and Remuneration Committee, the frequency of board meetings, and the ownership structure. Return on Assets (ROA) is
used to measure a company's financial performance, while Price to Book Value (PBV) is
used to measure its market performance. This study information is taken from secondary data and the company's official annual report. This study's sample was drawn from a financial institution listed on the Indonesia Stock Exchange (IDX) between 2016 and 2020. This study sampled 38 companies using a technique purposive sampling. Using the EViews software, this research employs a panel data regression model for its analysis. The data
demonstrated that the Audit Committee positively affected ROA but had no effect on PBV. The frequency of board meetings had no effect on ROA, but a negative effect on PBV. ROA and PBV were unaffected by the size of the board of directors, internal directors, external directors, Nomination and Remuneration Committee, ownership structure, and compensation of directors. The most relevant finding of this research indicates that the
influence of independent variables on ROA and PBV differs between large and small banks. In addition, board size had a negative effect on ROA during the Covid-19 pandemic in 2020, but a good effect on PBV. In the meantime, director's compensation had a beneficial effect on PBV, but no effect on ROA.
used to measure a company's financial performance, while Price to Book Value (PBV) is
used to measure its market performance. This study information is taken from secondary data and the company's official annual report. This study's sample was drawn from a financial institution listed on the Indonesia Stock Exchange (IDX) between 2016 and 2020. This study sampled 38 companies using a technique purposive sampling. Using the EViews software, this research employs a panel data regression model for its analysis. The data
demonstrated that the Audit Committee positively affected ROA but had no effect on PBV. The frequency of board meetings had no effect on ROA, but a negative effect on PBV. ROA and PBV were unaffected by the size of the board of directors, internal directors, external directors, Nomination and Remuneration Committee, ownership structure, and compensation of directors. The most relevant finding of this research indicates that the
influence of independent variables on ROA and PBV differs between large and small banks. In addition, board size had a negative effect on ROA during the Covid-19 pandemic in 2020, but a good effect on PBV. In the meantime, director's compensation had a beneficial effect on PBV, but no effect on ROA.
Creator
Narita Pravitasari, Erna Setiany
Source
DOI: 10.26905/JKDP.V26i3.7726DO
Publisher
Universitas Merdeka Malang
Date
July 2022
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Narita Pravitasari, Erna Setiany, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Corporate Governance Internal Mechanisms, Directors' Remuneration, and Financial Performance: Evidence from Indonesia Banking Industries,” Repository Horizon University Indonesia, accessed April 18, 2025, https://repository.horizon.ac.id/items/show/4864.
Corporate Governance Internal Mechanisms, Directors' Remuneration, and Financial Performance: Evidence from Indonesia Banking Industries,” Repository Horizon University Indonesia, accessed April 18, 2025, https://repository.horizon.ac.id/items/show/4864.