Open AccessThe Odd-Even Effect in The Boards of Commissioners and Corporate Values
Author(s) -
Ardhi Islamudin,
Gerrinko Giffari Wurintara,
Yustrida Bernawati
Publication year - 2020
Publication title -
jurnal ilmiah akuntansi dan bisnis/jurnal ilmiah akuntansi dan bisnis
Language(s) - English
Resource type - Journals
eISSN - 2303-1018
pISSN - 2302-514X
DOI - 10.24843/jiab.2020.v15.i02.p12
Subject(s) - voting , accounting , value (mathematics) , perspective (graphical) , corporate governance , business , on board , law , political science , mathematics , finance , statistics , engineering , politics , aerospace engineering , geometry
This article enlarges the literacy about the characteristics on board of commissioners by adding a new perspective, namely the odd-even effect in board of commissioners’ structure. This type of research was quantitative research. When the board of commissioners is formed with an odd number, the decision making process will be easier and more efficient. It is because there is no possibility of a voting tie and result the one directional perspective. It is different, when the board of commissioners is formed with an even number. It will trigger a voting tie in the decision making process. Therefore, there is a possibility of different perspective in the board of commissioners. As a result, the odd or even proportions number in the board of commissioners affects the corporate value. The smaller number board of commissioner’s forms a stronger board of commissioners. Then, the company that have odd boards of commissioners has a higher corporate value than the company that has an even board of commissioners.
Keywords: corporate value, odd-even effects, board of commissioners.