Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)

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Corporate Governance and Financial Performance of Consumer Goods Industry Companies Listed on Indonesia Stock Exchange

Authors
Henny Setyo Lestari1, *, Bahtiar Usman1, Syofriza Syofyan1, Lavlimatria Esya1, Hartini Hartini1
1Management Study Program, Faculty of Economic and Business, Universitas Trisakti, Jakarta, Indonesia
*Corresponding author. Email: henny_setyo_lestari@trisakti.ac.id
Corresponding Author
Henny Setyo Lestari
Available Online 10 January 2024.
DOI
10.2991/978-94-6463-350-4_29How to use a DOI?
Keywords
independent board; financial performance; board member diversity; Internal stock ownership; leverage; board meetings; board size; company size
Abstract

This study aims to investigate the effect of corporate governance on financial performance in consumer goods industry companies listed on the Indonesia Stock Exchange in the period 2016 -2020. The independent variables used consist of insider shareholding, board size, board independence, board meeting, and board gender diversity, and the control variables used are leverage and firm size. The dependent variable used is financial performance with measurement proxies using Tobin's Q. The study examines 31 consumer goods industry companies. The results of this study indicate that insider shareholding, independent board, board meetings, and firm size do not affect financial performance. Board size has a positive significant effect on financial performance. Board gender diversity and leverage have a negative significant effect on financial performance. Companies in the consumer goods sector are expected to reduce their share ownership by internal parties so that their internal parties will continue to focus on their primary objectives without prioritizing their interests as company shareholders.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
10 January 2024
ISBN
978-94-6463-350-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-350-4_29How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Henny Setyo Lestari
AU  - Bahtiar Usman
AU  - Syofriza Syofyan
AU  - Lavlimatria Esya
AU  - Hartini Hartini
PY  - 2024
DA  - 2024/01/10
TI  - Corporate Governance and Financial Performance of Consumer Goods Industry Companies Listed on Indonesia Stock Exchange
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 307
EP  - 314
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_29
DO  - 10.2991/978-94-6463-350-4_29
ID  - Lestari2024
ER  -