Implementasi Corporate Governance Mechanism Terhadap Kinerja Perusahaan Korporasi di Makassar
Keywords:
corporate governance mechanism, board characteristics, audit committee, company performanceAbstract
The purpose of this study is to analyze the influence of corporate governance mechanism on the performance of corporate corporations in Makassar. This research according to the level of exploration is included in causality research. This study uses purposive sampling technique. The type of sample used is the non-probability sampling method. The results of the study explain that (1) board characteristics variables have a positive and significant effect on company performance, (2) the audit committee has a positive and significant effect on the company's performance.
References
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Ahmed, E., & Hamdan, A. (2015). The impact of corporate governance on firm performance: Evidence from Bahrain Stock Exchange. European Journal of Business and Innovation Research, 3(5), 25-48.
Aldamen, H., Duncan, K., Kelly, S., McNamara, R., & Nagel, S. (2012). Audit committee characteristics and firm performance during the global financial crisis. Accounting & Finance, 52(4), 971-1000.
Al-Matari, Y. A., Al-Swidi, A. K., Fadzil, F. H. B. F. H., & Al-Matari, E. M. (2012). Board of directors, audit committee characteristics and the performance of Saudi Arabia listed companies. International Review of Management and Marketing, 2(4), 241-251.
Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The measurements of firm performance’s dimensions. Asian Journal of Finance & Accounting, 6(1), 24-49..
Bart, C. K., Bontis, N., & Taggar, S. (2001). A model of the impact of mission statements on firm performance. Management Decision, 39(1), 19-35.
Bathula, H. (2008). Board characteristics and firm performance: Evidence from New Zealand (Doctoral dissertation, Auckland University of Technology).
Borlea, S. N., Achim, M. V., & Mare, C. (2017). Board characteristics and firm performances in emerging economies. Lessons from Romania. Economic research-Ekonomska istraživanja, 30(1), 55-75.
Bouaziz, Z., & Triki, M. (2012). The impact of the presence of audit committees on the financial performance of Tunisian companies. International Journal of Management & Business Studies, 2(4), 57-64.
Buallay, A., Hamdan, A., & Zureigat, Q. (2017). Corporate governance and firm performance: Evidence from Saudi Arabia. Australasian Accounting, Business and Finance Journal, 11(1), 78-98.
Cadbury, A. (1999). Corporate governance: A framework for implementation. Private Sector Development, Knowledge Management Unit, World Bank, Washington, DC.
Carneiro, P., Heckman, J. J., & Masterov, D. V. (2005). Labor market discrimination and racial differences in premarket factors. The Journal of Law and Economics, 48(1), 1-39.
Cho, H. J., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic management journal, 26(6), 555-575.
Danoshana, S., & Ravivathani, T. (2013). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. Merit Research Journal of Accounting, Auditing, Economics and Finance, 1(6), 118-121.
DeZoort, F. T., Hermanson, D. R., Archambeault, D. S., & Reed, S. A. (2002). Audit committee effectiveness: A synthesis of the empirical audit committee literature. Journal of Accounting Literature, 21, 38-75.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The journal of law and Economics, 26(2), 301-325.
Freeman, R. E., & McVea, J. (2001). A stakeholder approach to strategic management.
Gillan, S. L. (2006). Recent developments in corporate governance: An Overview. Journal of Corporate Finance, 12(3), 381-402.
Grossman, S. J., & Hart, O. D. (1986). The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of political economy, 94(4), 691-719.
Hendry, K., & Kiel, G. C. (2004). The role of the board in firm strategy: Integrating agency and organisational control perspectives. Corporate Governance: An International Review, 12(4), 500-520.
Hillman, A. J., Cannella, A. A., & Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management studies, 37(2), 235-256.
Ingley, C. B., & Van der Walt, N. T. (2001). The strategic board: The changing role of directors in developing and maintaining corporate capability. Corporate Governance: An International Review, 9(3), 174-185.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. the Journal of Finance, 48(3), 831-880.
Kipkoech, R. S., & Rono, L. (2016). Audit committee size, experience and firm financial performance. Evidence Nairobi Securities Exchange, Kenya. Research Journal of Finance and Accounting, 7(15), 87-95.
Levitt, S. D., & Venkatesh, S. A. (2000). An economic analysis of a drug-selling gang's finances. The Quarterly Journal of Economics, 115(3), 755-789.
McIntyre, M. L., Murphy, S. A., & Mitchell, P. (2007). The top team: examining board composition and firm performance. Corporate Governance: The international journal of business in society, 7(5), 547-561.
Michelberger, K. (2016). Corporate governance effects on firm performance: A literature review. Regional Formation and Development Studies, 20(3), 84-95.
Muth, M., & Donaldson, L. (1998). Stewardship theory and board structure: A contingency approach. Corporate Governance: An International Review, 6(1), 5-28.
Ostrower, F., & Stone, M. M. (2010). Moving governance research forward: A contingency-based framework and data application. Nonprofit and Voluntary Sector Quarterly, 39(5), 901-924.
Raghunandan, K., & Rama, D. V. (2007). Determinants of audit committee diligence. Accounting Horizons, 21(3), 265-279.
Roberts, J., McNulty, T., & Stiles, P. (2005). Beyond agency conceptions of the work of the nonâ€executive director: Creating accountability in the boardroom. British Journal of Management, 16, S5-S26.
Santos, J. B., & Brito, L. A. L. (2012). Toward a subjective measurement model for firm performance. BAR-Brazilian Administration Review, 9(2), 95-117.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students. Pearson Education.
Sharma, V., Naiker, V., & Lee, B. (2009). Determinants of audit committee meeting frequency: Evidence from a voluntary governance system. Accounting Horizons, 23(3), 245-263.
Siam, A. Y., Laili, N. H. B., & Khairi, K. F. (2015). The relationship between audit committee characteristics and earnings management among Jordanian listed companies: Proposing conceptual framework. Research Journal of Finance and Accounting, 6(18), 1-10.
Solomon, J. (2007). Corporate governance and accountability. John Wiley & Sons.
Thiel, A., Winter, V., & Büchner, V. A. (2018). Board characteristics, governance objectives, and hospital performance: An empirical analysis of German hospitals. Health Care Management Review, 43(4), 282-292.
US House of Representatives. (2002). The Sarbanes-Oxley Act of 2002. Public Law 107-204 [HR 3763].
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
Walsh, J. P., & Seward, J. K. (1990). On the efficiency of internal and external corporate control mechanisms. Academy of Management review, 15(3), 421-458.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.
Abbott, L. J., Parker, S., & Peters, G. F. (2000). The effectiveness of Blue Ribbon Committee Recommendations in mitigating financial misstatements: an empirical study. Working paper.
Abdullah, N. S. (2004). Board composition, CEO duality and performance among Malaysian listed companies. Corporate Governance: The international journal of business in society, 4(4), 47-61.
Ahmed, E., & Hamdan, A. (2015). The impact of corporate governance on firm performance: Evidence from Bahrain Stock Exchange. European Journal of Business and Innovation Research, 3(5), 25-48.
Aldamen, H., Duncan, K., Kelly, S., McNamara, R., & Nagel, S. (2012). Audit committee characteristics and firm performance during the global financial crisis. Accounting & Finance, 52(4), 971-1000.
Al-Matari, Y. A., Al-Swidi, A. K., Fadzil, F. H. B. F. H., & Al-Matari, E. M. (2012). Board of directors, audit committee characteristics and the performance of Saudi Arabia listed companies. International Review of Management and Marketing, 2(4), 241-251.
Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The measurements of firm performance’s dimensions. Asian Journal of Finance & Accounting, 6(1), 24-49..
Bart, C. K., Bontis, N., & Taggar, S. (2001). A model of the impact of mission statements on firm performance. Management Decision, 39(1), 19-35.
Bathula, H. (2008). Board characteristics and firm performance: Evidence from New Zealand (Doctoral dissertation, Auckland University of Technology).
Borlea, S. N., Achim, M. V., & Mare, C. (2017). Board characteristics and firm performances in emerging economies. Lessons from Romania. Economic research-Ekonomska istraživanja, 30(1), 55-75.
Bouaziz, Z., & Triki, M. (2012). The impact of the presence of audit committees on the financial performance of Tunisian companies. International Journal of Management & Business Studies, 2(4), 57-64.
Buallay, A., Hamdan, A., & Zureigat, Q. (2017). Corporate governance and firm performance: Evidence from Saudi Arabia. Australasian Accounting, Business and Finance Journal, 11(1), 78-98.
Cadbury, A. (1999). Corporate governance: A framework for implementation. Private Sector Development, Knowledge Management Unit, World Bank, Washington, DC.
Carneiro, P., Heckman, J. J., & Masterov, D. V. (2005). Labor market discrimination and racial differences in premarket factors. The Journal of Law and Economics, 48(1), 1-39.
Cho, H. J., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic management journal, 26(6), 555-575.
Danoshana, S., & Ravivathani, T. (2013). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. Merit Research Journal of Accounting, Auditing, Economics and Finance, 1(6), 118-121.
DeZoort, F. T., Hermanson, D. R., Archambeault, D. S., & Reed, S. A. (2002). Audit committee effectiveness: A synthesis of the empirical audit committee literature. Journal of Accounting Literature, 21, 38-75.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The journal of law and Economics, 26(2), 301-325.
Freeman, R. E., & McVea, J. (2001). A stakeholder approach to strategic management.
Gillan, S. L. (2006). Recent developments in corporate governance: An Overview. Journal of Corporate Finance, 12(3), 381-402.
Grossman, S. J., & Hart, O. D. (1986). The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of political economy, 94(4), 691-719.
Hendry, K., & Kiel, G. C. (2004). The role of the board in firm strategy: Integrating agency and organisational control perspectives. Corporate Governance: An International Review, 12(4), 500-520.
Hillman, A. J., Cannella, A. A., & Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management studies, 37(2), 235-256.
Ingley, C. B., & Van der Walt, N. T. (2001). The strategic board: The changing role of directors in developing and maintaining corporate capability. Corporate Governance: An International Review, 9(3), 174-185.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. the Journal of Finance, 48(3), 831-880.
Kipkoech, R. S., & Rono, L. (2016). Audit committee size, experience and firm financial performance. Evidence Nairobi Securities Exchange, Kenya. Research Journal of Finance and Accounting, 7(15), 87-95.
Levitt, S. D., & Venkatesh, S. A. (2000). An economic analysis of a drug-selling gang's finances. The Quarterly Journal of Economics, 115(3), 755-789.
McIntyre, M. L., Murphy, S. A., & Mitchell, P. (2007). The top team: examining board composition and firm performance. Corporate Governance: The international journal of business in society, 7(5), 547-561.
Michelberger, K. (2016). Corporate governance effects on firm performance: A literature review. Regional Formation and Development Studies, 20(3), 84-95.
Muth, M., & Donaldson, L. (1998). Stewardship theory and board structure: A contingency approach. Corporate Governance: An International Review, 6(1), 5-28.
Ostrower, F., & Stone, M. M. (2010). Moving governance research forward: A contingency-based framework and data application. Nonprofit and Voluntary Sector Quarterly, 39(5), 901-924.
Raghunandan, K., & Rama, D. V. (2007). Determinants of audit committee diligence. Accounting Horizons, 21(3), 265-279.
Roberts, J., McNulty, T., & Stiles, P. (2005). Beyond agency conceptions of the work of the nonâ€executive director: Creating accountability in the boardroom. British Journal of Management, 16, S5-S26.
Santos, J. B., & Brito, L. A. L. (2012). Toward a subjective measurement model for firm performance. BAR-Brazilian Administration Review, 9(2), 95-117.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students. Pearson Education.
Sharma, V., Naiker, V., & Lee, B. (2009). Determinants of audit committee meeting frequency: Evidence from a voluntary governance system. Accounting Horizons, 23(3), 245-263.
Siam, A. Y., Laili, N. H. B., & Khairi, K. F. (2015). The relationship between audit committee characteristics and earnings management among Jordanian listed companies: Proposing conceptual framework. Research Journal of Finance and Accounting, 6(18), 1-10.
Solomon, J. (2007). Corporate governance and accountability. John Wiley & Sons.
Thiel, A., Winter, V., & Büchner, V. A. (2018). Board characteristics, governance objectives, and hospital performance: An empirical analysis of German hospitals. Health Care Management Review, 43(4), 282-292.
US House of Representatives. (2002). The Sarbanes-Oxley Act of 2002. Public Law 107-204 [HR 3763].
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
Walsh, J. P., & Seward, J. K. (1990). On the efficiency of internal and external corporate control mechanisms. Academy of Management review, 15(3), 421-458.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.
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Published
2018-09-30
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Articles in JBIMA (Jurnal Bisnis dan Manajemen) Vol. 6 No. 2
