FOREIGN COMMISSIONERS' IMPACT ON BOARD CHARACTERISTICS AND FIRM PERFORMANCE

Authors

  • I Nyoman Kusuma Adnyana Mahaputra Universitas Mahasaraswati Denpasar, Indonesia
  • I Made Sudiartana Universitas Mahasaraswati Denpasar, Indonesia
  • I Kadek Bagiana Universitas Mahasaraswati Denpasar, Indonesia
  • Ida Ayu Lidya Primadona Universitas Mahasaraswati Denpasar, Indonesia
  • Ni Putu Mita Ari Murti Universitas Mahasaraswati Denpasar, Indonesia

DOI:

https://doi.org/10.23969/jrak.v16i2.17006

Keywords:

Corporate Governance, Firm Performance, Board Characteristics, Foreign Commissioner

Abstract

This research addressed the problem of understanding how board composition influenced firm performance with a specific focus on the roles of female and foreign commissioners. Utilizing data from 122 manufacturing companies listed on the Indonesian Stock Exchange over the years 2019-2021. The research employed moderated regression analysis on 366 observations to examine this dynamic. The findings revealed that larger board sizes, as well as the presence of independent and female commissioners, positively affected firm performance. While foreign commissioners were found to enhance the positive impact of board size, they did not significantly moderate the effects of independent and female commissioners. These results highlighted the critical role of board diversity in enhancing corporate governance and firm performance, offering significant implications for global governance practices.

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Published

2024-10-30