SWL-Economic

Permanent URI for this collection

https://repository.unri.ac.id/handle/123456789/2822

Browse

Browsing SWL-Economic by Subject "CEO tenure"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    FIRM PERFORMANCE, CEO TENURE AND CORPORATE GOVERNANCE REPORTING: EVIDENCE FROM INDONESIA
    (2014-06-02) Sari, Ria Nelly; Anugerah, Rita; Herly, Miranti
    This study attempts to investigate the relationship between firm performance and CEO tenure on corporate governance reporting. Seventy-three large public firms from 100 largest companies in Indonesia were selected as the sample. Data for corporate governance reporting are collected from annual reports for the year 2005-2007. Corporate governance reporting is indexed by the extent to which companies disclose the corporate governance practices in their annual report. The disclosure index reporting model developed in the current research is based on selected items using in Annual Report Award (ARA, an award given annually to Indonesian listed and non listed companies interm of relevant information disclosed), and firm performance is measured using two indicators; ROA and Tobin-Q. Results demonstrate that when firm performance is measured by ROA, firm performance is positively related to corporate governance reporting but the relationship becomes significantly negative when performance is measured by Tobin-Q. Results support that CEO tenure significantly has a negative relationship with corporate governance reporting. The interactive effects of firm performance and CEO tenure on corporate governance reporting demonstrate that only the interaction of ROA and CEO tenure effects is significantly related to corporate governance reporting. However, the interaction between CEO tenure and Tobin-Q is not associated with the level of corporate governance reporting. The discussion and implications of the findings and also suggestions for future research are discussed.