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Abstract:
This study aims to analyze the role of independent directors on the financial performance of trading companies in Indonesia with two-tier board system. The company's financial performance as the dependent variable is measured using Piotroski Fscore. The independent variable of this study is independent directors (DIND) and the control variables are board size (UDD), external pressure (LEV), and sales growth (GROWTH). Data samples were obtained from the official IDX website using a purposive sampling method. Data is processed using descriptive analysis and panel data regression. The results of panel data regression show that independent directors (DIND), board size (UDD), and sales growth (GROWTH) have a positive effect on the company's financial performance, while external pressure (LEV) does not affect the company's financial performance.
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