Title : Relationship Between CEO Power and Firm Value: Evidence from Indonesian Non-Financial Companies
Authors:
- The Charisma of Elfianda Hamidlal
- Harymawan Faith
Department : Accounting
Journal Name : Journal of Accounting and Business Dynamics
Kinds of Journal: –
Keywords : CEO power, firm value, ownership power, expert power, prestige power
Abstract:
This research aims to examine the relationship between the CEO power and firm value of non-financial companies listed on the Indonesia Stock Exchange during the 2014-2018 period. Using purposive sampling method data were collected from 322 firmyear observations. Data was analyzed using multiple linear analysis methods. The results uncovered that ownership power, expert power and prestige power have a positive relationship with firm value. The most probable reason could be that CEO share ownership encourages better decision-making processes that contribute to enhanced corporate value. A longer tenure as a CEO signals high professionalism and expertise of the CEO that leads to improved decision quality made by the CEO.
For details : https://repository.unair.ac.id/113379/1/Iman%20Harymawan_Artikel201_Relationship%20Between%20CEO.pdf