Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

Chermian Eforis ()
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Chermian Eforis: Universitas Multimedia Nusantara, Scientia Garden-Gading Serpong, 15820, Tangerang, Indonesia

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

Abstract: Objective � The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia's SOEs and the influence of state ownership on company performance. Methodology/Technique � This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015. Findings � The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets. Novelty � One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia.

Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; Return On Assets; Indonesia. (search for similar items in EconPapers)
JEL-codes: G32 G34 H70 (search for similar items in EconPapers)
Pages: 7
Date: 2018-03-04
New Economics Papers: this item is included in nep-cfn and nep-sea
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Citations: View citations in EconPapers (6)

Published in Accounting and Finance Review, Volume 3, Issue 1

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