Open AccessTHE EXISTENCE OF INDEPENDENT COMMISSIONERS AND BOARD REMUNERATIONS IN ACHIEVING FIRM VALUE
Author(s) -
Salis Musta Ani,
Anis Chariri,
Imam Ghozali
Publication year - 2022
Publication title -
proceeding international conference on research and development
Language(s) - English
Resource type - Journals
ISSN - 2828-4925
DOI - 10.47841/icorad.v1i1.14
Subject(s) - remuneration , corporate governance , business , accounting , value (mathematics) , enterprise value , scope (computer science) , sample (material) , function (biology) , finance , computer science , mathematics , statistics , chemistry , chromatography , evolutionary biology , biology , programming language
This study aims to examine the effect of governance mechanisms, especially the existence of independent commissioners and board remuneration, on firm value. Using a sample of companies from various industries listed on the Indonesia Stock Exchanges, data then were analyzed using a linear regression model. The result shows that independent commissioners and board remuneration significantly affect firm value. Moreover, the existence of independent commissioners plays an important role in strengthening the remuneration of the board in supporting the achievement of the company's firm value. The finding implies that adequate remuneration is required to make the governance mechanism works properly according to the function and scope