Affiliation:
1. Universitas Airlangga, Indonesia
Abstract
Abstract This study examines the influence of family control on firm performance, taking into consideration the moderating variable of the proportion of independent commissioners. The sample for this research consists of manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2018, with 477 observations. Ordinary Least Squares (OLS) regression analysis and Moderated Regression Analysis (MRA) techniques were employed to test the hypotheses. The findings of this research indicate that family control has a significant negative impact on firm performance. Additionally, it was found that the proportion of independent commissioners significantly weakens the negative influence of family control on firm performance.
Reference62 articles.
1. The iniquitous influence of family ownership structures on corporate performance;Achmad T.;The Journal of Global Business Issues,2005
2. Ownership concentration, ownership composition and the performance of the Kuwaiti listed non-financial firms;Al-Saidi M.;International Journal of Commerce and Management,2015
3. Founding-family ownership and firm performance: evidence from the S&P 500;Anderson R. C.;The Journal of Finance,2003
4. Ownership structure and firm performance in non-listed firms: evidence from Spain;Arosa B.;Journal of Family Business Strategy,2010
5. Effects of board and ownership structure on corporate performance;Arouri H.;Journal of Accounting in Emerging Economies,2014