Corporate governance structure and firm performance in the indonesian capital market

Abstract

This research examines the effect of the board of institutional, the independent board and the board size to the firm performance. Using fixed effects data panel regression, this research investigated 293 firms listed on the Indonesia Stock Exchange during 2010-2015. Firm performance was proxied by market measure (Tobin's Q). The findings of this research suggested that the board of institutional, the independent board of commisioners had positive impact only to Tobin's Q value, while the board size could increase both Tobin's Q. On the other hand, this research found that the debt, and risk gave no impact to firm performance. This research also found that the board size had nonlinear relationship with investment as proxied by IOS. While the IOS variables were able to mediate the effect of the board size to firm performance.