Title: The Role of Concentrated Ownership in the Influence of Board of Commissioners Size on Management Risk Preferences
Authors: Nita Selvia Rohmayati
Affiliations: Master of Accounting Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This study aims to obtain empirical evidence of concentrated ownership moderating the effect of board size on management risk preferences. The data collection technique used is the purposive sampling method so that a sample of 531 manufacturing sector companies listed on the Indonesia Stock Exchange in 2014-2017 was obtained. The data analysis used is moderated regression analysis (MRA). The results of this study are (1) a large number of boards does not impact the volatility of the company's stock returns. However, it is positively related to the cash flow volatility proxy (2) the interaction of concentrated ownership into board size is negative and insignificant, indicating that ownership concentration does not play a moderating role between board size and management risk preferences (market risk and operational risk) (3) Concentrated ownership is a potential moderator / homologizer moderator on the stock return volatility proxy (market risk), and on the cash flow volatility proxy (operational risk) concentrated ownership is a moderating predictor / predictor moderator.
Keywords: Board of Commissioners Size, Concentrated Ownership, Management Risk Preference
Sources: http://repository.unair.ac.id/94547/