The Effect of Capital Structure, Family Ownership and Board of Commissioners and Audit Committee Effectiveness on the Efficiency of Manufacturing Companies

This research aims to provide empirical evidence regarding the effect of capital structure, family ownership and effectiveness of the board of commissioners and the audit committee on the level of efficiency in manufacturing companies. Efficiency is measured using Data Envelopment Analysis (DEA) scores, while board of commissioners and audit committee effectiveness is measured using a method developed by Hermawan (2011). The hypotheses are examined using panel data regression with the fixed effects method for a sample of 100 manufacturing companies listed on the Indonesia Stock Exchange for the period 2008–2012. The results of this research conclude that companies with higher leverage are able to attain higher efficiency in their operations. Companies with greater board of commissioners effectiveness can also attain higher efficiency in their operations. Meanwhile, family ownership and audit committee effectiveness have no significant impact on efficiency in the companies studied.