Tulung, Joy Elly and Ramdani, Dendi (2017): Independence, Size and Performance of the Board an emerging market research. Published in: Corporate Ownership and Control , Vol. 15, No. 2 (18 January 2018): pp. 201-208.
Preview |
PDF
MPRA_paper_112180.pdf Download (815kB) | Preview |
Abstract
The purpose of this article is to find the link between board independence, board size and BPD (regional development bank) performance for describing the corporate governance in regional development bank. The sample of firms consists all 26’s BPD in Indonesia in the period 2010-2014; we take secondary data from the annual report of each BPD, total 203 top executives who are members of the boards of all BPD in Indonesia. The results are the influence of the board independence and board size on the BPD performance. The sample employed all the members of the boards of BPD in Indonesia giving us a confidence in generalization our findings. The statistical method used to test the hypotheses is OLS regression. This method was applied to measure the relationship between board independence, board size and BPD performance. The results suggested that there is a positive relationship between board independence, board size and BPD performance.
Item Type: | MPRA Paper |
---|---|
Original Title: | Independence, Size and Performance of the Board an emerging market research |
Language: | English |
Keywords: | Corporate Governance, Board Independence, Board Size, BPD Performance |
Subjects: | G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance |
Item ID: | 112180 |
Depositing User: | Joy Elly Tulung |
Date Deposited: | 08 Mar 2022 03:25 |
Last Modified: | 08 Mar 2022 03:25 |
References: | Abdullah, S. N. (2016). Corporate governance mechanisms and the performance of Malaysian listed firms. Corporate Ownership & Control, 14(1-2), 384-398. doi.org/10.22495/cocv14i1c2p10 Adam, R. B., & Mehran, H. (2003). Is Corporate Governance Different for Bank Holding Companies? Economic Policy Review – Federal Reserve Bank of New York, 9(1), 123–142. Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Qualitative Analysis, 31 (3), 377–397. dx.doi.org/10.2307/2331397 Arun, T. G. and Turner, J. D. (2004), Corporate Governance of Banks in Developing Economies: concepts and issues. Corporate Governance: An International Review, 12: 371–377. doi: 10.1111/j.1467-8683.2004.00378.x Barnhart, S. W., Marr, M. W., & Rosenstein, S. (1994). Firm Performance and Board Composition: Some New Evidence. Managerial and Decision Economics, 15(4), 329-340. Baysinger, B. D. & Butler, H. N. (1985). Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition JLEO (1985) 1 (1): 101-124 Bennedsen, M., Kongsted, H. C. & Nielsen, K. M. (2004). Board Size Effects in Closely Held Corporations', CAM Institute of Economics, University of Copenhagen Working Papers, vol. 25. Berle, A. A. & Means, G, C. (1932). The Modern Corporation and Private Property (New York: Harcourt, Brace & World, 1968). Bhagat, S., & Black, B. (2002). The non-correlation between board independence and long-term firm performance. Journal of Corporation Law, 27(2), 231–273. Bonn, I., Yoshikawa, T. & Phan, P. H. (2004). Effects of Board Structure on Firm Performance: A Comparison Between Japan and Australia, Asian Business & Management, vol. 3, pp. 105- 125. Boone, A. L., Field, L. C., Karpoff, J. M., & Raheja, C. G. (2007). The Determinants of Corporate Board Size and Composition: An Empirical Analysis. Journal of Financial Economics, 85(1), 66–101. Chen, X., Cheng, Q. & Wang, X. (2015). Does increased board independence reduce earnings management? Evidence from recent regulatory reforms. Review of Accounting Studies, 20(2), 899-933. doi.org/10.1007/s11142-015-9316-0 Cho, D.-S. and Kim, J. (2007), Outside Directors, Ownership Structure and Firm Profitability in Korea. Corporate Governance: An International Review, 15: 239–250. doi: 10.1111/j.1467-8683.2007.00557.x Coase, R. (1937). The Nature of the Firm. Economica, New Series, 4(16) pp. 386-405 Coles, J. L., Daniel, N. D. and Naveen, L. (2008) Boards: Does one size fit all? Journal of Financial Economics, 87, 329-356. doi:10.1016/j.jfineco.2006.08.008 Cornett, M.M., Marcus, A.J., Tehranian, H., 2008. Corporate governance and pay-for-performance: the impact of earnings management. Journal of Financial Economics 87, 357 – 373. doi:10.1016/j.jfineco.2007.03.003 Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Large Board Size and Decreasing Firm Value in Small Firms. Journal of Financial Economics, 48(1), 35–54. Ezzamel, M. and R. Watson (1993). Organizational Form, Ownership Structure and Corporate Performance: A Contextual Empirical Analysis of UK Companies, British Journal of Management, 4, 3, pp. 161-176. Farooque, O. A., Zijl, T. V., Dunstan, K., & Karim. A. W. (2007) Corporate governance in Bangladesh: link between ownership and financial performance. Corporate governance in Bangladesh, 15 (6), 1453–1468. Ghabayen, M. A., Mohamad, N. R., & Ahmad, N. (2015). Board Characteristics And Corporate Social Responsibility Disclosure In The Jordanian Banks. Corporate Board: Role, Duties & Composition. 12(1). Ghosh, S. (2006). Do board characteristics affect corporate performance? Firm-level evidence for India. Applied Economics Letters, 13(7), 435-443. dx.doi.org/10.1080/13504850500398617 Guedhami, O., and Pittman, J. (2006). Ownership Concentration in Privatized Firms: The Role of Disclosure Standards, Auditor Choice, and Auditing Infrastructure, Journal of Accounting Research 44, 889-929. Hermalin, B. E., & Weisbach, M. S. (1988). The Determinants of Board Composition. RAND Journal of Economics, 19(4), 589-606. Jensen, M., & Meckling, W. (1976). Theory of the firm: managerial behaviour, agency cost and ownership structure. Journal of Financial Economics, 3, 305-350. dx.doi.org/10.1016/0304-405X(76)90026-X Jensen, M. C. (1993). The Modern Industrial Revolution, Exit and the Failure of Internal Control Systems. Journal of Finance, 48(3), 831–880. Isik, O. and Ince A. R. (2016). Board Size, Board Composition and Performance: An Investigation on Turkish Banks. International Business Research; Vol. 9, No. 2. dx.doi.org/10.5539/ibr.v9n2p74 Kiel, G. C. and Nicholson, G. J. (2003), Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance. Corporate Governance: An International Review, 11: 189–205. doi: 10.1111/1467-8683.00318 King, R. G. and Levine, R. (1993). Finance and Growth: Schumpeter Might Be Right The Quarterly Journal of Economics (1993) 108 (3): 717-737 doi:10.2307/2118406 Klein, G. A. (1998). Sources of power: How people make decisions. Cambridge, MA: MIT Press Knyazeva, A., Knyazeva, D., and Masulis, R., (2013) The Supply of Corporate Directors and Board Independence, The Review of Financial Studies, 26(6), 1561–1605, //doi.org/10.1093/rfs/hht020 Lipton, M., & Lorsch, J. W. (1992). A Modest Proposal for Improved Corporate Governance. Business Lawyer, 1(1). 59–77. Mak, Y. T. & Li, Y. (2001). Determinants of Corporate Ownership and Board Structure: Evidence from Singapore, Journal of Corporate Finance, vol. 7, pp. 236-256. Mak, Y. T. & Yuanto, K. (2003). Board Size Really Matters: Further Evidence on the Negative Relationship Between Board Size and Firm Value, Pulses by Singapore Stock Exchange. Monks, R.A.G. and Minow, N. (2011). Corporate Governance, Fifth Edition, John Wiley & Sons Nguyen, P., Rahman, N., Tong, A., & Zhao, R. (2016). Board size and firm value: evidence from Australia. Journal of Management & Governance, 20(4), 851-873. Pearce II, J. A., & Zahra, S. A. (1992). Board Composition from a Strategic Contingency Perspective. Journal of Management Studies, 29(4), 411–438. Pfeffer, J. (1972). Size and Composition of Corporate Boards of Directors: The Organization and its Environment. Administrative Science Quarterly, 17(2), 218– 228. Ramdani, D. and Witteloostuijn, A. v. (2010), The Impact of Board Independence and CEO Duality on Firm Performance: A Quantile Regression Analysis for Indonesia, Malaysia, South Korea and Thailand. British Journal of Management, 21: 607–627. doi: 10.1111/j.1467-8551.2010.00708.x Rodríguez-Fernández, M. (2015). Company financial performance: Does board size matter? Case of the EUROSTOXX50 index. Cuadernos de Gestión, 15(2). Rosenstein, S. and J. G. Wyatt, (1990). Outside Directors, Board Independence, and Shareholder Wealth, Journal of Financial Economics 26, pp. 175-192. Schellenger, M., Wood, D., & Tashakori, A., (1989). Board of director composition, shareholder wealth, and dividend policy, Journal of Management, 15 (3), 457-467. Singh, H., & Harianto, F.. (1989). Management-Board Relationships, Takeover Risk, and the Adoption of Golden Parachutes. The Academy of Management Journal, 32(1), 7–24. Tjager, I.Nyoman, (2003). Corporate Governance; Tantangan dan Kesempatan bagi Komunitas Bisnis Indonesia . PT Prenhallindo, Jakarta. Tulung, Joy Elly dan Dendi, Ramdani. (2016). The Influence of Top Management Team Characteristics on BPD Performance. International Research Journal of Business Studies, 8 (3)155-166. doi.org/10.21632/irjbs.8.3.155-166 Tsene, Chryssoula. (2017) Corporate Governance and Board Of Directors In Greek Listed Companies. Corporate Board: Role, Duties & Composition., 13 (2). doi.org/10.22495/cbv13i2art4 Vafeas, N. (1999). Board Meeting Frequency and Firm Performance. Journal of Financial Economics, 53(1), 113–142. Wu, Y. (2000). Honey, CalPERS Shrunk the Board, Working Paper. University of Chicago. Yermack, D. (1996). Higher Valuation of Companies with a Small Board of Directors. Journal of Financial Economics., 40(2), 185–211. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/112180 |