Directors' Ownership and Firm Performance in Indonesia

Authors

  • Juanda . Fakultas Ekonomi, Universitas Syah Kuala Banda Aceh

DOI:

https://doi.org/10.21111/tijarah.v5i2.3456

Keywords:

ROA, directors’ ownership, firm performance

Abstract

The purpose of this paper is to investigate the influence of directors’ ownership on the financial performance of firms listed on the Indonesian Stock Exchange from 2008 to 2012. The method uses quantitative approach, namely multiple linear regression. The financial performance is measured with return on assets (ROA). The research shows that directors’ ownership does not significantly influence firm performance. This implies that directors’ ownership of listed firms in Indonesia is not proven to get the interests of directors and shareholders aligned. This paper is particularly important to the policymakers and shareholders of firms in Indonesia and other developing economies since it provides a comprehensive insight into the directors’ ownership – firm performance relationship and therefore it helps them to formulate the best policies.

References

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Published

2020-01-30

How to Cite

., J. (2020). Directors’ Ownership and Firm Performance in Indonesia. Al Tijarah, 5(2), 85–92. https://doi.org/10.21111/tijarah.v5i2.3456

Issue

Vol. 5 No. 2 (2019): Al Tijarah | December

Section

Articles

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The Authors submitting a manuscript do so on the understanding that if accepted for publication, copyright of the article shall be assigned to Al Tijarah journal and Departement of Management, Faculty of Economics and Management, University of Darussalam as publisher of the journal.