Article Sidebar

Download
Download Article

Main Article Content

Abstract

This study aims to determine the impact of excellent corporate governance ownership structure on the firm size on stock prices in manufacturing companies listed on the Indonesia Stock Exchange, both simultaneously and partially. According to the findings, good corporate governance, as evaluated by the board of directors and the commissioners, negatively and substantially impacts stock prices. In contrast, the audit committee has a positive and significant impact on stock prices. The natural logarithm of total assets, which measures the size of a company, has a favorable effect on stock prices. The more the company's total investments in the 52 issuers, the higher the share price. Managerial ownership has a positive but not statistically significant effect on stock prices, whereas institutional ownership has a negative and statistically significant impact. The increase in institutional ownership will cause stock prices to fall.

Keywords

Good Corporate Governance ownership structure company size Stock Price

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Syafei M. Nur, I., Ibrahim, M. B. H., Sonjaya, Y., Ridhwansyah Pasalo, M., & Taotubun, N. (2022). Examining the Relationship between Good Corporate Governance and Company Size on Stock Prices in Manufacturing Companies Listed on the Indonesia Stock Exchange. Golden Ratio of Finance Management, 2(2), 98–107. https://doi.org/10.52970/grfm.v2i2.175
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Agostino, M., & Ruberto, S. (2021). Environment-friendly practices: Family versus non-family firms. Journal of Cleaner Production, 329, 129689. https://doi.org/https://doi.org/10.1016/j.jclepro.2021.129689
  2. Alleyne, P., & Howard, M. (2005). An exploratory study of auditors’ responsibility for fraud detection in Barbados. Managerial Auditing Journal, 20(3), 284–303. https://doi.org/10.1108/02686900510585618
  3. Borgholthaus, C. J., Iyer, D. N., & O’Brien, J. P. (2021). The effects of firm aspirational performance on changes in leadership structure. Journal of Business Research, 129, 319–327. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.03.009
  4. Charbel, S., Elie, B., & Georges, S. (2013). Impact of family involvement in ownership management and direction on financial performance of the Lebanese firms. International Strategic Management Review, 1(1), 30–41. https://doi.org/https://doi.org/10.1016/j.ism.2013.08.003
  5. Duréndez, A., & Madrid-Guijarro, A. (2018). The impact of family influence on financial reporting quality in small and medium family firms. Journal of Family Business Strategy, 9(3), 205–218. https://doi.org/https://doi.org/10.1016/j.jfbs.2018.08.002
  6. Duygun, M., Guney, Y., & Moin, A. (2018). Dividend policy of Indonesian listed firms: The role of families and the state. Economic Modelling, 75, 336–354. https://doi.org/https://doi.org/10.1016/j.econmod.2018.07.007
  7. Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25.
  8. Govindan, K., Kilic, M., Uyar, A., & Karaman, A. S. (2021). Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation. International Journal of Production Economics, 231, 107835. https://doi.org/https://doi.org/10.1016/j.ijpe.2020.107835
  9. Habib, A., & Jiang, H. (2015). Corporate governance and financial reporting quality in China: A survey of recent evidence. Journal of International Accounting, Auditing and Taxation, 24, 29–45. https://doi.org/https://doi.org/10.1016/j.intaccaudtax.2014.12.002
  10. Henry, T. F. (2010). Does equity compensation induce executives to maximize firm value or their own personal wealth? In C. R. Lehman (Ed.), Ethics, Equity, and Regulation (Vol. 15, pp. 111–139). Emerald Group Publishing Limited. https://doi.org/10.1108/S1041-7060(2010)0000015008
  11. Kandil, T., & Chowdhury, D. (2014). Islamic Banks’ Mergers and Acquisitions – Impacts on Performance and Financial Crisis in the United Kingdom. In The Developing Role of Islamic Banking and Finance: From Local to Global Perspectives (Vol. 95, pp. 119–140). Emerald Group Publishing Limited. https://doi.org/10.1108/S1569-3759(2014)0000095016
  12. Khamis, F. M., & AbRashid, R. (2018). Service quality and customer’s satisfaction in Tanzania’s Islamic banks. Journal of Islamic Marketing, 9(4), 884–900. https://doi.org/10.1108/JIMA-09-2016-0068
  13. Kohlbeck, M., & Luo, X. (2019). Are CFO debt-like compensation incentives associated with financial reporting quality? Advances in Accounting, 45, 100413. https://doi.org/https://doi.org/10.1016/j.adiac.2019.03.001
  14. Linardi, F. M. (2020). Investors’ behavior and mutual fund portfolio allocations in Brazil during the global financial crisis. Latin American Journal of Central Banking, 1(1), 100007. https://doi.org/https://doi.org/10.1016/j.latcb.2020.100007
  15. Lornudd, C., Frykman, M., Stenfors, T., Ebbevi, D., Hasson, H., Sundberg, C. J., & von Thiele Schwarz, U. (2021). A champagne tower of influence: An interview study of how corporate boards enact occupational health and safety. Safety Science, 143, 105416. https://doi.org/https://doi.org/10.1016/j.ssci.2021.105416
  16. Minoja, M., & Romano, G. (2021). Managing intellectual capital for sustainability: Evidence from a Re-municipalized, publicly owned waste management firm. Journal of Cleaner Production, 279, 123213. https://doi.org/https://doi.org/10.1016/j.jclepro.2020.123213
  17. Mironiuc, M., Carp, M., & Chersan, I.-C. (2015). The Relevance of Financial Reporting on the Performance of Quoted Romanian Companies in the Context of Adopting the IFRS. Procedia Economics and Finance, 20, 404–413. https://doi.org/https://doi.org/10.1016/S2212-5671(15)00090-8
  18. Mokhtar, N., Jusoh, R., & Zulkifli, N. (2016). Corporate characteristics and environmental management accounting (EMA) implementation: evidence from Malaysian public listed companies (PLCs). Journal of Cleaner Production, 136, 111–122. https://doi.org/https://doi.org/10.1016/j.jclepro.2016.01.085
  19. Morris, E. A., Zhou, Y., Brown, A. E., Khan, S. M., Derochers, J. L., Campbell, H., Pratt, A. N., & Chowdhury, M. (2020). Are drivers cool with pool? Driver attitudes towards the shared TNC services UberPool and Lyft Shared. Transport Policy, 94, 123–138. https://doi.org/https://doi.org/10.1016/j.tranpol.2020.04.019
  20. Phillips, S., Thai, V. V, & Halim, Z. (2019). Airline Value Chain Capabilities and CSR Performance: The Connection Between CSR Leadership and CSR Culture with CSR Performance, Customer Satisfaction and Financial Performance. The Asian Journal of Shipping and Logistics, 35(1), 30–40. https://doi.org/https://doi.org/10.1016/j.ajsl.2019.03.005
  21. Ramsbottom, G., Horan, B., Berry, D. P., & Roche, J. R. (2015). Factors associated with the financial performance of spring-calving, pasture-based dairy farms. Journal of Dairy Science, 98(5), 3526–3540. https://doi.org/https://doi.org/10.3168/jds.2014-8516
  22. Richardson, G., Obaydin, I., & Liu, C. (2022). The effect of accounting fraud on future stock price crash risk. Economic Modelling, 117, 106072. https://doi.org/https://doi.org/10.1016/j.econmod.2022.106072
  23. Rochmah Ika, S., & Mohd Ghazali, N. A. (2012). Audit committee effectiveness and timeliness of reporting: Indonesian evidence. Managerial Auditing Journal, 27(4), 403–424. https://doi.org/10.1108/02686901211217996
  24. Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/https://doi.org/10.1016/j.brq.2015.08.001
  25. Septiani, R. N., & Wuryani, E. (2020). Pengaruh Literasi Keuangan Dan Inklusi Keuangan Terhadap Kinerja Umkm Di Sidoarjo. E-Jurnal Manajemen Universitas Udayana, 9(8), 3214. https://doi.org/10.24843/ejmunud.2020.v09.i08.p16
  26. Siregar, Q. R., & Batubara, H. C. (2017). Analisis Determinan Pertumbuhan Laba di Bursa Efek Indonesia. Jurnal Riset Financial Bisnis, 1(1), 79–92. https://doi.org/10.5281/zenodo.1049135
  27. Spatacean, I.-O. (2014). Investigations Upon the Correlations between the Efficiency of Investment Strategies and the Market Performances of the Romanian Financial Investment Companies. Procedia Economics and Finance, 15, 609–616. https://doi.org/https://doi.org/10.1016/S2212-5671(14)00529-2
  28. Su, K., Zhang, M., & Liu, C. (2022). Financial derivatives, analyst forecasts, and stock price synchronicity: Evidence from an emerging market. Journal of International Financial Markets, Institutions and Money, 81, 101671. https://doi.org/https://doi.org/10.1016/j.intfin.2022.101671
  29. Sun, L. (2022). Ultimate government control and stock price crash risk: Evidence from China. Emerging Markets Review, 100970. https://doi.org/https://doi.org/10.1016/j.ememar.2022.100970
  30. Susanty, A., Puspitasari, N. B., Silviannisa, S., & Jati, S. (2022). Measuring halal logistics implementation. Journal of Islamic Marketing, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIMA-08-2021-0266
  31. Trifonov, D. (2021). Political connections of Russian corporations: Blessing or curse? Journal of Behavioral and Experimental Finance, 29, 100458. https://doi.org/https://doi.org/10.1016/j.jbef.2021.100458
  32. Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, S. H. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon, 6(8), e04741. https://doi.org/https://doi.org/10.1016/j.heliyon.2020.e04741
  33. Xiong, T., Zhang, W., & Chen, C.-T. (2022). Dataset for the analysis of stock price responses to African Swine Fever Outbreaks in China. Data in Brief, 45, 108574. https://doi.org/https://doi.org/10.1016/j.dib.2022.108574