Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

Eforis, Chermian (2018) Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia. Accounting finance review, 3 (1).

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Abstract

Objective – The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia’s SOEs and the influence of state ownership on company performance. Methodology/Technique – This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015. Findings – The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets. Novelty – One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia.

Item Type: Article
Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; ROA; Indonesia
Subjects: 600 Technology (Applied Sciences) > 650 Management and Public Relations > 657 Accounting
Divisions: Faculty of Business > Accounting
Depositing User: Administrator UMN Library
Date Deposited: 13 Dec 2021 22:46
Last Modified: 13 Dec 2021 22:46
URI: https://kc.umn.ac.id/id/eprint/19532

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