Title:
Corporate Governance Mechanisms and Corporate Performance: The Case on the Kompas 100 Index

Authors:
Dr. Sutrisno, Indonesia

Abstract:

Companies that have gone public are required to implement good corporate governance, so that all information about the company can be known by the public. This study aims to examine the effect of corporate governance mechanisms on corporate performance. Corporate performance is measured by return on assets (ROA), while corporate governance mechanisms consist of the size of the board of directors, the size of the board of commissioners and the frequency of board meetings, managerial ownership and institutional ownership. The population in this study focused on companies included in the Kompas 100 index, by taking a sample of 23 companies using purposive sampling. The observation period is five years (2017-2021). Hypothesis testing using multiple regression analysis with a significance level of 0.05. The results of the study show that the size of the board of directors has a positive and significant effect on corporate performance, while the size of the board of commissioners has a significant but negative effect on corporate performance, while the frequency of board meetings has no effect on corporate performance. Other results, managerial ownership has a significant and negative effect on company performance, while institutional ownership has no effect on corporate performance

DOI: https://doi.org/10.51505/IJEBMR.2024.8606