The existence and role of independent board members and their impact on the board’s effectiveness and firm’s value: The case of the emerging market

Corporate Governance and Organizational Behavior Review Pub Date : 1900-01-01 DOI:10.22495/cgobrv6i2sip4

Antonius Alijoyo, Kevin Bastian Sirait

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引用次数: 2

Abstract

The implementation of good corporate governance (GCG) within a firm dictates its organizational behavior driven down by the board functionality effectiveness, among which the existence and role of an independent board member are taken into account. This study examines the effect of the existence and role of independent board members in Indonesia listed firm on the board’s functionality effectiveness, and subsequently, its impact on the value of the firm. Since Indonesia adopts a two-board system instead of a one-board system, the independent board member is known as an independent commissioner (IC) who sits on the company board of commissioners (BOC) which is equivalent to the company board of directors (BOD) in the one-board system. It is found through regression analysis that when an IC holds a powerful leadership position, it enhances the BOC’s functionality effectiveness. Likewise, if the IC has the position as the chair of BOC’s sub-committee in the company. The regression analysis was conducted in two periods, before the establishment of the Financial Services Authority (FSA) and after.

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独立董事会成员的存在和作用及其对董事会有效性和公司价值的影响:以新兴市场为例

良好的公司治理(GCG)在公司内部的实施决定了公司的组织行为受到董事会功能有效性的影响，其中考虑了独立董事会成员的存在和作用。本研究考察了印尼上市公司独立董事会成员的存在和作用对董事会功能有效性的影响，以及其对公司价值的影响。由于印尼实行的是两板制，而不是一板制，因此独立董事被称为独立董事(independent commissioner, IC)，他们在公司董事会(BOC)中任职，相当于一板制中的公司董事会(BOD)。通过回归分析发现，当IC拥有强大的领导地位时，它会增强BOC的功能有效性。同样，如果IC担任中行在该公司的小组委员会主席。回归分析在金融服务管理局(FSA)成立之前和之后两个时期进行。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Corporate Governance and Organizational Behavior Review

CiteScore

1.20

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0.00%

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