Research Repository

Corporate Governance and Performance: Evidence from an Emerging Market

Nuryanah, Siti and Islam, Sardar M. N (2011) Corporate Governance and Performance: Evidence from an Emerging Market. Malaysian Accounting Review, 10 (1). pp. 17-42. ISSN 1675-4077

Full text for this resource is not available from the Research Repository.

Abstract

This study investigated the relationships between the internal corporate governance mechanisms and firm performance in Indonesia. Recognising weak external mechanisms of Indonesian corporate governance, this study focused on the internal mechanisms, hence offering considerable insights for the understanding of the relationships between internal corporate governance mechanisms and performance in Indonesia. The main proposition of this study was that the traditional findings on the relationships between internal corporate governance mechanisms and company performance relevant to developed countries were not appropriate for emerging markets like Indonesia where the business environment is different as, for example, the capital market is still under-developed, and the regulatory framework is weak. Using a panel data during 2002-2004, the findings show that all internal mechanisms except size of both board and audit committee, and management ownership are significant in explaining company performance. Specifically, some results on the audit committee are different to the literature of best practice of audit committee. The findings, therefore, support our proposition that the role of some specific aspects of internal corporate governance mechanisms affecting company performance does not exist in Indonesia.

Item Type: Article
Uncontrolled Keywords: ResPubID24434, corporate governance, internal mechanisms, Indonesian Code of Corporate Governance, JSX 1, company performance
Subjects: Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
FOR Classification > 1402 Applied Economics
SEO Classification > 970114 Expanding Knowledge in Economics
Depositing User: VUIR
Date Deposited: 27 Sep 2012 02:09
Last Modified: 27 Sep 2012 02:09
URI: http://vuir.vu.edu.au/id/eprint/9449
ePrint Statistics: View download statistics for this item

Repository staff only

View Item View Item

Search Google Scholar