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Board Characteristics and Firm Performance: Evidence from Indonesia

Athalia Ariati Hidayat, Sidharta Utama


This research examines the effect of board characteristics (comprising in different sized proportions: family commissioners, family directors, independent commissioners, ex-government officer commissioners, and board of commissioners size) to firm performance. Using fixed-effects data panel regression, this research investigates 293 firms listed on the Indonesian Stock Exchange during 2008-2012. Firm performance is proxied by market measure (Tobins Q) and accounting measure (ROA). The findings of this research suggest that the proportion of family commissioners and family directors have positive impact only to Tobins Q value, while the proportion of independent directors can increase both Tobins Q and ROA. On the other hand, this research finds that the proportion of ex-government officers in the board gives no impact to firm performance. This research also finds that the board size has U-shaped non-linear relationship with firm performance as proxied by Tobins Q and ROA.


Board of Commissioners Size, Ex-Government Officer Commissioner, Family Commissioner, Family Director, Independent Commissioner

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PDF pp.137-154

Copyright (c) 2017 Athalia Ariati Hidayat, Sidharta Utama

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