Title: Family Control, Corporate Governance and Company Performance
Author: Rosmiati Jafar
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This study analyzes the effect of family control on company performance, with corporate governance as a moderating variable. In this study, corporate governance is measured using three proxies: the proportion of independent commissioners, the size of the board of commissioners, and institutional ownership. The sample of this study is manufacturing sector companies listed on the Indonesia Stock Exchange for the period 2012-2018 with 433 observations. This study found that family control has a significant negative effect on company performance. Other results of this study indicate that corporate governance, proxied by the proportion of independent commissioners and the size of the board of commissioners, significantly weakens the negative effect of family control on company performance, while corporate governance, proxied by institutional ownership, does not significantly weaken the negative effect of family control on company performance.
Keywords: Corporate Governance, Family