Kepemilikan keluarga, hubungan politik dan family aligned board terhadap implementasi tata kelola perusahaan

Abstract

This research aims to investigate the effect of family-owned companies, family aligned board and political connection to the implementation of firm's corporate governance. It is argued that family-owned companies selects a board based on family relationship to protect their interest and decides that the policy maximizes their wealth. This will affect the implementation of good corporate governance mechanism. The samples are non-financial companies for the year of 2012. The results demonstrate that family ownership has a positive effect to the family aligned board and has a negative effect to the implementation of good corporate governance. Furthermore, the political connection does not have a negative effect to the implementation of good corporate governance.