The Influence of the Independent Board of Commissioners on Financial Performance

Abstract

Financial performance is a view of a capable economic outcome achieved by the company at a certain time through activities company. Financial problems are one of the most vital problems for companies in business development in all companies. The company's ability to generate profits is the key to the company's success to be said to have good company performance. This study explains the phenomena of the quality of financial reporting and good corporate governance mechanisms, namely the composition of the independent board of commissioners. The total population of big cap companies is fifty companies and those who meet the criteria for the sample are thirty-two companies. This type of research is causal research. The method of analysis in this study uses path analysis to examine the causal relationships between exogenous and endogenous variables. The results showed that the composition of the independent commission's board of influence on financial statements.