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AUTHOR(S): Michael Hadjaat, Anisa Kusumawardani, Musviyanti, Yana Ulfah, Rizky Yudaruddin, Yanzil Azizil Yudaruddin
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TITLE Board Size and Performance of Manufacturing Companies in Emerging Country |
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ABSTRACT The purpose of this study is to determine the effect of board size on the performance of manufacturing firms in Indonesia. This study also evaluates the relationship of these aspects in large and small companies and separates subsamples of firms with and without dual CEOs. Meanwhile, the data were evaluated using a static estimator panel on a sample of 208 public trading industrial businesses from 2008 to 2017. The findings of this study indicated that, first, increasing the board size tends to boost manufacturing companies' performance. This is particularly prominent in large firms and those without dual CEOs. Therefore, the findings confirmed the agency theory, which holds that a larger board of directors improves firm performance through increased oversight by a wider group of people. Also, it explained the efforts to increase the number of directors that can advise CEOs, particularly in large firms and those without CEO duality. |
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KEYWORDS Board Size, Firm Performance, Manufacture |
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Cite this paper Michael Hadjaat, Anisa Kusumawardani, Musviyanti, Yana Ulfah, Rizky Yudaruddin, Yanzil Azizil Yudaruddin. (2021) Board Size and Performance of Manufacturing Companies in Emerging Country. International Journal of Economics and Management Systems, 6, 581-588 |
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