Abstract

HANDRIANI, Eka  and  ROBIYANTO, Robiyanto. Institutional ownership, independent board, the board size, and firm performance: Evidence from Indonesia. Contad. Adm [online]. 2019, vol.64, n.3, e118.  Epub Aug 20, 2020. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2018.1849.

This research examines the effect of institutional ownership, independent board and the board size to firm performance. Using fixed effect data panel regression, this research investigates 293 firms listed in the Indonesian Stock Exchange during 2010-2015. Firm performance is proxied by market measure (To-bin’s Q). The findings of this research suggest that the institutional ownership, the board of Independence has a positive impact only to Tobin’s Q value, while the board size can increase both Tobin’s Q. This research also finds that the board size has a non-linear relationship with investment as proxied by IOS. While the IOS variables can mediate the effect of board size on firm performance.

Keywords : G32; G34; Institutional ownership; Independent board; Board size; Firm performance; Investment opportunity set (IOS).

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