IDEAS home Printed from https://ideas.repec.org/a/prv/jeblpv/224.html
   My bibliography  Save this article

The relationship between corporate governance and firm performance: An empirical analysis of Indonesian companies

Author

Listed:
  • Husnah

    (Department of Management, Faculty of Economics and Business, Tadulako University, Indonesia)

  • Aryati

    (Faculty of Economics and Business, Muslim Indonesia University, Indonesia)

  • Ramlawati

    (Faculty of Economics and Business, Muslim Indonesia University, Indonesia)

  • Mochammad Fahlevi

    (Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta 11480, Indonesia)

Abstract

This study investigates the relationship between corporate governance practices, as measured by the Corporate Governance Perception Index (CGPI) scores, and firm performance (ROA, ROE, EPS) of publicly-listed Indonesian firms. Using a panel dataset of 112 firms over five years (560 observations), fixed and random effects models are applied. Results show a positive and statistically significant association between higher CGPI scores and improved performance metrics, even after controlling for firm size and industry type. This underscores the strategic role of corporate governance in enhancing financial performance, attracting investors, and fostering long-term growth in Indonesia’s competitive and globalized economy.

Suggested Citation

  • Husnah & Aryati & Ramlawati & Mochammad Fahlevi, 2023. "The relationship between corporate governance and firm performance: An empirical analysis of Indonesian companies," Journal of Economics and Business Letters, Privietlab Research Center, vol. 3(3), pages 49-52, August.
    • Handle: RePEc:prv:jeblpv:224
    DOI: 10.55942/jebl.v3i3.224
    as

    Download full text from publisher

    File URL: https://journal.privietlab.org/index.php/JEBL/article/view/224
    Download Restriction: no
    File URL: https://libkey.io/10.55942/jebl.v3i3.224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Corporate governance; Firm performance; Corporate Governance Perception Index (CGPI); Indonesia; ROA; ROE; EPS;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prv:jeblpv:224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mochammad Fahlevi (email available below). General contact details of provider: https://journal.privietlab.org/index.php/JEBL .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.