The Role of Ownership Concentrates on the Influence of Board of Commissioners Size on Management Risk Preferences

Title: The Role of Ownership Concentrates on the Influence of Board of Commissioners Size on Management Risk Preferences

Author: Nita Selvia Rohmayati

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research aims to obtain empirical evidence that concentrated ownership moderates the influence of board size on management risk preferences. The data collection technique used was the purposive sampling method to obtain a sample of 531 data on manufacturing sector companies listed on the Indonesia Stock Exchange in 2014-2017. The data analysis used is moderated regression analysis (MRA). The results of this research are (1) a large board size has no impact on the volatility of company stock returns. However, positively related to the cash flow volatility proxy (2) the interaction of concentrated ownership on 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 / moderator predictor.

Keywords: Size of the Board of Commissioners, Concentrated Ownership, Management Risk Preferences

Sources: http://repository.unair.ac.id/94547/