The Effect of Family Ownership and Corporate Governance on Firm Performance: A Case Study in Indonesia

• 발행기관: 한국유통과학회
• 저자명: Siti MUNTAHANAH Hadri KUSUMA D. Agus HARJITO Zaenal ARIFIN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.5, 697~706쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.05.30

영문 초록

This quantitative study aims to examine the effect of family ownership on company performance empirically. Specifically, this study examines the moderating effect of corporate governance on the relationship between family ownership and company performance which has never been explored in the previous studies. This study’s main target population was all listed companies in the Indonesian Capital Market Directory (ICMD) for 2008–2018. The study used criteria, namely data completeness, to measure research variables and obtained 2996 data or firm-year observations. The research contingency model to test the proposed hypothesis was the General Moment Method (GMM). The study presents the results of data descriptions shows the average, median, maximum, minimum, and standard deviation values for each variable. The descriptive data shows that family ownership is common in Indonesia: 64% of 244 companies in the sample. The inferential analysis results using a multiple regression model test show that family ownership significantly reduces company performance. However, corporate governance proxied by the board of directors, managerial risk profile, and independent commissioners significantly moderate the relationship between family ownership and company performance. Besides, the managerial risk profile and independent commissioners strengthened while the board of commissioners’ presence weakened the effect of family ownership on performance.

목차

1. Introduction

2. Literature Review

3. Research Method and Materials

4. Results and Discussion

5. Conclusion

키워드

Firm Performance Family Ownership Corporate Governance