The effect of ownership structure, board of commissioners’ effectiveness and audit committee effectiveness on firm value: An empirical study of listed companies in the Indonesia stock exchange 2014

Abstract

The objective of this research is to examine the effect of the ownership structure, board of commissioners and audit committee effectiveness on the value of a firm. Institutional and managerial ownerships were used to measure ownership structure. The board of commissioners’ effectiveness was measured by its independence, activity, size and competence, based on Hermawan (2009). Audit committee effectiveness was measured by the educational background of its members and the number of meetings it held. The value of the firm was measured using Tobin’s Q. Involving 412 companies listed in the Indonesia Stock Exchange (BEI) in 2014, this empirical study with multiple regression shows that institutional and managerial ownerships, board of commissioners’ effectiveness and audit committee effectiveness have no significant effect on the value of a firm.