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Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises) Anak Agung Kompiyang Ratih Maldini; Pananda Pasaribu; Christian Haposan Pangaribuan
Journal of Business, Management, and Social Studies Vol. 1 No. 1 (2021): Journal of Business, Management, and Social Studies (Apr-Jun 2021)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (607.283 KB) | DOI: 10.53748/jbms.v1i1.6

Abstract

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.