Proceedings of the 20th International Symposium on Management (INSYMA 2023)

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Does Corporate Governance Affect Market Performance as Well as Fundamental Performance? Evidence from Indonesian Manufacturing Sectors

Authors
Zunairoh Zunairoh1, Liliana Inggrit Wijaya1, *, Bertha Silvia Sutejo1, Marwin Antonius Rejeki Silalahi1, Michelle Natasya Gozali1
1University of Surabaya, Surabaya, Indonesia
*Corresponding author. Email: liliana@staff.ubaya.ac.id
Corresponding Author
Liliana Inggrit Wijaya
Available Online 30 September 2023.
DOI
10.2991/978-94-6463-244-6_22How to use a DOI?
Keywords
Board of Commissioners; Independent Commissioners; Audit Committee Size; Nomination and Remuneration Committee
Abstract

This research aims to determine corporate governance’s impact on the firm’s financial performance (ROE and Tobin’s Q) in the manufacturing sector listed on the Indonesia Stock Exchange during 2016–2020. This research applied a quantitative approach with a sample of 615 observations from 123 manufacturing sector companies listed on the Indonesia Stock Exchange during 2016–2020. The collected data were then processed using multiple linear analysis models using the Eviews 10 program. The results show that the size of the board of commissioners and nomination and remuneration committee significantly affect the company’s financial performance based on ROE. In contrast, independent commissioners have no significant impact, and the size of the audit committee has a significant negative effect on the company’s financial performance based on ROE. While for the dependent variable Tobin’s Q, the size of board of commissioners, independent commissioners, and nomination and remuneration does not significantly affect the company’s financial performance, but the size of the audit committee has a significant and negative effect on the company performance based on Tobin’s Q.

Copyright
© 2024 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 20th International Symposium on Management (INSYMA 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
30 September 2023
ISBN
978-94-6463-244-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-244-6_22How to use a DOI?
Copyright
© 2024 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  - Zunairoh Zunairoh
AU  - Liliana Inggrit Wijaya
AU  - Bertha Silvia Sutejo
AU  - Marwin Antonius Rejeki Silalahi
AU  - Michelle Natasya Gozali
PY  - 2023
DA  - 2023/09/30
TI  - Does Corporate Governance Affect Market Performance as Well as Fundamental Performance? Evidence from Indonesian Manufacturing Sectors
BT  - Proceedings of the 20th International Symposium on Management (INSYMA 2023)
PB  - Atlantis Press
SP  - 125
EP  - 131
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-244-6_22
DO  - 10.2991/978-94-6463-244-6_22
ID  - Zunairoh2023
ER  -