Impact of the board of directors on financial performance and company capital: Risk management as an intervening variable

IF 2.2 Q3 MANAGEMENT

Journal of Co-operative Organization and Management Pub Date : 2022-12-01 DOI:10.1016/j.jcom.2021.100164

Nurdjanah Hamid, Ida Bagus Anom Purbawangsa

{"title":"Impact of the board of directors on financial performance and company capital: Risk management as an intervening variable","authors":"Nurdjanah Hamid, Ida Bagus Anom Purbawangsa","doi":"10.1016/j.jcom.2021.100164","DOIUrl":null,"url":null,"abstract":"<div><h3>Purpose</h3><p>This study investigates the effect of the board of directors on financial performance and company capital, either directly or indirectly with the risk management in Indonesia.</p></div><div><h3>Design/methodology</h3><p>This study presents an empirical investigation with samples of 31 nonfinancial companies out of a total population of 48 listed on the Indonesia stock exchange for the period from 2010 and 2016. The sampling method used was purposive sampling. Methods of data analysis in this study used Structural Equation Modeling (SEM).</p></div><div><h3>Findings</h3><p>The results of the SEM model find that there is a significant positive effect of risk management and the tenure-Chief Executive Officer (CEO) on financial performance and company capital. However, CEO duality has a significant negative effect on financial performance. The results also find that the effect of CEO duality and board size are significantly positive on financial performance through risk management.</p></div><div><h3>Originality/value</h3><p>This is the first-time paper to seek to influence the effect of the board of directors, financial performance, and company capital, either directly or indirectly on risk management in Indonesia.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":null,"pages":null},"PeriodicalIF":2.2000,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"8","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Co-operative Organization and Management","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2213297X21000367","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}

引用次数: 8

Abstract

Purpose

This study investigates the effect of the board of directors on financial performance and company capital, either directly or indirectly with the risk management in Indonesia.

Design/methodology

This study presents an empirical investigation with samples of 31 nonfinancial companies out of a total population of 48 listed on the Indonesia stock exchange for the period from 2010 and 2016. The sampling method used was purposive sampling. Methods of data analysis in this study used Structural Equation Modeling (SEM).

Findings

The results of the SEM model find that there is a significant positive effect of risk management and the tenure-Chief Executive Officer (CEO) on financial performance and company capital. However, CEO duality has a significant negative effect on financial performance. The results also find that the effect of CEO duality and board size are significantly positive on financial performance through risk management.

Originality/value

This is the first-time paper to seek to influence the effect of the board of directors, financial performance, and company capital, either directly or indirectly on risk management in Indonesia.

查看原文本刊更多论文

董事会对财务绩效和公司资本的影响:风险管理作为中介变量

目的本研究探讨印尼董事会对财务绩效和公司资本直接或间接与风险管理的影响。设计/方法本研究对2010年至2016年期间在印度尼西亚证券交易所上市的48家非金融公司中的31家进行了实证调查。抽样方法为目的抽样。本研究的数据分析方法采用结构方程模型(SEM)。SEM模型的结果发现，风险管理和CEO任期对财务绩效和公司资本有显著的正向影响。然而，CEO二元性对财务绩效有显著的负向影响。研究结果还发现，CEO双重性和董事会规模通过风险管理对财务绩效的影响显著正相关。原创性/价值这是第一次试图影响印尼董事会、财务业绩和公司资本直接或间接对风险管理的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Co-operative Organization and Management MANAGEMENT-

CiteScore

4.40

自引率

19.00%

发文量