Descendant CEO on Firm Performance: The Role of Audit Committee

Ni Made Mega Abdi Utami (), Ida Bagus Anom Yasa, Made Ayu Dwijayanti and Made Adhi Wirayana
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Ni Made Mega Abdi Utami: Politeknik Negeri Bali, Accounting Department
Ida Bagus Anom Yasa: Politeknik Negeri Bali, Accounting Department
Made Ayu Dwijayanti: Politeknik Negeri Bali, Accounting Department
Made Adhi Wirayana: Politeknik Negeri Bali, Accounting Department

A chapter in Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024), 2024, pp 77-86 from Springer

Abstract: Abstract Enhancing firm performance is one of several strategies that firms must take to flourish in a competitive climate. Optimizing organizational performance is critical for any business because it demonstrates how well a company manages and distributes its resources. Making the right decisions is a critical step toward increasing firm performance. The CEO is the most crucial individual to make tactical choices that affect a company’s performance. The audit committee’s role is critical to improving business performance. The audit committee supervises and enforces financial reporting standards, which have an impact on the quality of managerial decisions. The goal of this research is to determine how a firm’s performance is influenced by its founder or descendant CEO, and whether the Audit Committee can control the relationship between founder or descendant CEO and Firm Performance in manufacturing companies listed on the Indonesia Stock Exchange between 2018 and 2022. A dummy variable is used to measure the CEO’s ROA and Tobin’s Q are used to measure the company’s performance and audit committee size and independence are used to measure the audit committee. STATA is the application used to process data. The findings demonstrate that the Audit Committee can affect the relationship between the business’s accomplishments and the founder or descendant CEO. The findings of this study assist decision-makers and business owners in taking into account the internal and external factors that impact firm performance to make appropriate.

Keywords: Audit Committee; Descendant CEO; Firm Performance (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-622-2_10

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