A determinant of state-owned enterprises profitability with an independent board of commissioners as moderation variables
Journal Title: Jurnal Keuangan dan Perbankan - Year 2019, Vol 23, Issue 1
Abstract
Corporate governance drives the control function so that management could manage the corporate more effective. Good corporate governance could be the factor that boosts financial management to enhance profitability. This study examines the moderated effect of the independent commissioner proportion to the interaction between liquidity, capital structure, and sales growth to profitability. This study using a purposive sampling technique, there are four state-owned enterprises (SOEs) that fit the criteria. The analysis method used in this research is moderated regression analysis on panel data. The results of the study show that liquidity and the proportion of independent commissioners influence the profitability of the company. SOEs need to reduce the allocation of funds to current assets. Optimizing the performance of the SOEs board of commissioners also needs to be improved. The supervisory function carried out by the board of commissioners will affect operational activities so that managers will be more motivated to utilize current assets for operational investment and the company's current assets can be used optimally. Increasing the proportion of independent commissioners will also increase oversight of debt so that the condition of the company's capital structure can be optimized through the reduction of debt from SOEs.
Authors and Affiliations
Sophie Tiara Adriaty, Budi Purwanto, Wita Juwita Ermawati
Keywords
Related Articles
- EP ID EP656634
- DOI 10.26905/jkdp.v23i1.2519
- Views 116
- Downloads 0
HUBUNGAN GOOD UNIVERSITY GOVERNANCE TERHADAP KINERJA MANAJEMEN KEUANGAN PERGURUAN TINGGI
The pattern of financial management institution had to be accountable as one indicator of university management assessment as a whole. This study examined the management of higher education in terms of the implementation...
A note on Bitcoin’s price volatility
Cryptocurrencies such as bitcoin are sometimes referred to as the new gold and the buzz that surrounded bitcoins in the last few years is akin to the old day’s gold rush. Cryptocurrencies are not directly linked to any m...
GOOD CORPORATE GOVERNANCE DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN MELALUI CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE
This research explained the relationship between Good Corporate Governance mechanism to company’s value, and the extent disclosure of Corporate Social Responsibility as moderation variable. Hierarchical regression analys...
Performance Evaluation of Equity Mutual Funds in Indonesia
Mutual funds considered an investment alternative for investors. One type of mutual fund that attracts many investors was the equity mutual funds. Equity mutual fund a type of mutual funds that most part of the investmen...
The Global Economic Crisis and Its Impact on Bank Lending in Indonesia
This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisi...