PENGARUH REPUTASI MANAJEMEN PUNCAK DAN DEWAN KOMISARIS TERHADAP PENILAIAN INVESTOR PADA PERUSAHAAN YANG MELAKUKAN IPO

Abstract

This research empirically examines the influence o f reputation o f top management and board ofcommissioner (BOC) on firm value. Top management has a primary role as a strategic decision maker in a firm. Its actions and characteristics specifically influence the organization ' s outcomes. The main duty o f BOC is to ensure that managerial decisions are consistent with shareholders goals. One indicator o f top management and BOC ' s competency and skill is reputation. The purpose o f the study is to investigate the influence o f reputation o f top management and BOC on firm value at the Initial Public Offering (IPO). Its effect is through a largely symbolic role to enhance organizational legitimacy and it provides a signal to potential investors about the firm s prospect. The samples include 59 firm s undertaking IPO in the Jakarta Stock Exchange (JSX) during 1999-2006. This study employs three characteristics o f reputation: education background, previous experiences and corporate board experiences. This study finds that education background has a positive association with investor valuation. Previous experiences and corporate board experiences do not have significant association with investor valuation.