Evaluating the role of independent and female directors on the remuneration committee: evidence from LQ45 and IDX SMC liquid

Josua Tarigan, Jennifer Adriana and Saarce Elsye Hatane

International Journal of Business Governance and Ethics, 2026, vol. 20, issue 1, 93-114

Abstract: This study uses a sample of Indonesian large and small-medium enterprises to examine the effect of independent and female directors on the relationship between remuneration and firm performance. Pooled cross-sectional data is gathered from 138 LQ45 (Liquid 45) and 142 IDX SMC (Indonesia Stock Exchange Small-Mid Cap) liquid observations, with 2017 to 2020 as the observation years. The different influence towards executive remuneration between Indonesian large and small-medium companies, but similar participation percentages, indicate that their number or presence may not determine the success of independent and female directors in influencing remuneration. This study extends earlier research on the influence of independent and female directors on remuneration committees. This is notably the first study to evaluate the influence of independent and female directors on remuneration committees that uses Indonesia as the sample, comparing large and small-medium companies.

Keywords: independent directors; female directors; remuneration committee; remuneration; company's performance; LQ45; IDX SMC liquid. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbget:v:20:y:2026:i:1:p:93-114

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