Purpose: This study is aimed at analyzing the influence of the size of the board of directors, audit committee, institutional ownership and managerial ownership on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange.
Methodology: The study analyses 156 Indonesia firms listed on the Indonesia Stock Exchange using linear regression analysis.
Findings: The results indicated that the size of the board of directors has a positive effect on financial performance, while the size of the audit committee, institutional ownership and managerial ownership has no effect on the financial performance. While on the simultaneously testing, it showed that the size of the board of directors, audit committee size, institutional ownership and managerial ownership influence the financial performance.
Research limitations/implications: The research has been limited to the manufacturing sector of Indonesian companies and the internal mechanism of corporate governance. The study suggests considering an external mechanism of corporate governance as predictor variables.
Originality: The study adds to the literature of corporate government and firm performance in emerging countries. The study implies that corporate governance mechanism for audit committee, managerial ownership and institutional ownership do not enhance company performance. The average size of an audit committee just to fulfill the regulation. Corporate governance mechanism that improve financial performance is size board director. Improvement in board performance as board size increase has positive impact that enhance financial performance of company.
Irine Herdjiono, Yeni Hastin Puspa, Gerzon Maulany and Benedictus Elnath Aldy
This research examined the effects of family environment, self concept, motivation and risk taking propensity on entrepreneurship intention in Merauke, the border area of Indonesia. Conducted by collecting data from 382 college student through questionnaire. This study applied linear regression analysis. The results showed family environment, self concept, motivation and risk taking propensity significantly affected entrepreneurship intention. The study implies that individual factor such as self-concept, motivation, and risk taking propensity together with social factor, family environment affect entrepreneurial intention.