The impact of Busy Directors on Firm Performance in Manufacturing Companies on the Indonesia Stock Exchange

DOI

10.2991/aebmr.k.200606.049How to use a DOI?

Keywords

busy directors, family ownership, firm performance

Abstract

Board of directors and commissioners are elected to conduct the management and supervision of the company. The most problematic issue in corporate governance around the world is the number of directors and commissioner positions allowed in a company. This paper examines how busy directors can influence the firm’s performance by focusing on and contributing to the board of commissioners to be researched as busy directors and family ownership as moderation variable. This paper used 133 listed companies on the Indonesia Stock Exchange (IDX) as a sample with 4 years observation period from 2014 to 2017. By using panel data analysis, we find that the busy directors do not correlate with the firm’s performance as measured by ROA. Furthermore family ownership as moderated variable reacts positively with firm performance. Furthermore, this paper also shows that busy directors reinforce the family ownership influence of the firm’s performance.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Nabilah Yasmin
AU  - Cynthia A. Utama
PY  - 2020
DA  - 2020/06/09
TI  - The impact of Busy Directors on Firm Performance in Manufacturing Companies on the Indonesia Stock Exchange
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 283
EP  - 286
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.049
DO  - 10.2991/aebmr.k.200606.049
ID  - Yasmin2020
ER  -