Leveraging SOE performance with board of commissioner independency and competency as a moderating variable

Geoniko Afeb Lastrada, Viska Anggraita

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This study examines the effect of leverage and board-of-commissioner independency and competency on the financial performance of state-owned enterprises (SOE) in Indonesia during 2013-2017. Hypothesis testing uses a panel regression model on 173 firm-years of SOEs both listed and unlisted on the Indonesia Stock Exchange. The results found that levels of debt negatively affected financial performance. Thus, in terms of the financial aspect, increases in costs resulting from increases in debt are greater than increases in benefits. Additionally, the independence of the board of commissioners has a positive effect on financial performance, whereas their competence has no significant effect. Furthermore, the independence and competence of the board does not moderate the effect of the level of debt on SOE financial performance.

Original languageEnglish
Title of host publicationResearch on Firm Financial Performance and Consumer Behavior
PublisherNova Science Publishers, Inc.
Pages101-121
Number of pages21
ISBN (Electronic)9781536180206
Publication statusPublished - 1 Jan 2020

Keywords

  • Board of commissioner
  • Competency
  • Financial performance
  • Independency
  • Leverage
  • SOE

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