CEO Power and Characteristics on Firm
Performance in Indonesian State-Owned
Enterprises
CEO Power and Characteristics on Firm
Performance in Indonesian State-Owned
Enterprises
Author(s): Ayi Ahadiat, Mahrinasari Ms, Usep Syaipudin, Fajrin Satria Dwi KesumahSubject(s): National Economy, Business Economy / Management, Public Finances
Published by: Akademia Ekonomiczno-Humanistyczna w Warszawie
Keywords: firm performance; state-owned enterprises; CEO power; CEO characteristics;
Summary/Abstract: Financial performance is an important indicator in a company in measuring the level of viability of the com-pany. This study aims to analyze the effect of CEO power (proxied by CEO ownership), and characteristics (CEOeducational background and work experience) on firm performance as proxied by ROA with the moderatingvariable of the percentage of the number of independent commissioners. The population in this study wereall companies officially listed on the Indonesia Stock Exchange in 2015-2019. Then the sampling system usedpurposive sampling and obtained 16 state-owned companies listed on the Indonesia Stock Exchange. Theresults show that in model 1, CEO ownership variable has no effect on company performance, while the edu-cational background variable has a significant negative effect and work experience variable has a significantpositive effect on firm performance. In model 2, only the educational background variable has a significanteffect, and the moderating variable does not strengthen the relationship between all independent variableson the company's financial performance.
Journal: Contemporary Economics
- Issue Year: 17/2023
- Issue No: 3
- Page Range: 295-310
- Page Count: 16
- Language: English