The Effect of Corporate Governance on Sharia Corporate Performance in Indonesia

DOI

10.2991/iac-17.2018.49How to use a DOI?

Keywords

Audit Committee; Board of Commissioner; Corporate Governance; Corporate Performance; Tobin’s Q

Abstract

This research aims to examine the effect of corporate governance on Sharia corporate performance. Corporate governance is measured using the effectiveness of Boards of Commissioners and Audit Committees. We score this effectiveness using the activity, competency, size and independence of the Board of Commissioners and the Audit Committee, while Tobin’s Q is used to measure Sharia corporate performance. The sample for this study is 63 Sharia manufacturing companies listed on the Indonesia Stock Exchange and on the Sharia Stock List released by the Indonesia Financial Services Authority from 2014 to 2015. Using multiple regression, the results show that Board of Commissioners and Audit Committee effectiveness has positive effect on Sharia corporate performance. Based on this result, Sharia companies should increase the effectiveness of their Boards of Commissioners and Audit Committees, as it is used by investors to make investment decisions.

Copyright

© 2018, 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/).

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TY  - CONF
AU  - Roghiebah Jadwa Faradisi
AU  - Dyah Setyaningrum
PY  - 2017/08
DA  - 2017/08
TI  - The Effect of Corporate Governance on Sharia Corporate Performance in Indonesia
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 273
EP  - 277
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.49
DO  - 10.2991/iac-17.2018.49
ID  - Faradisi2017/08
ER  -