Examining the Impact of Independent Commissioners, Audit Committees, and Board of Directors on Financial Performance: A Contemporary Analysis
Keywords:
Independent Commissioner (KI), Audit Committee (KA), Board of Directors (DD), Company Performance (ROAAbstract
This study investigates the impact of three independent variables - independent commissioners, audit committees, and board of directors - on financial performance as the dependent variable. Employing a purposive sampling method, 16 companies were selected based on predetermined characteristics from a population of food and beverage companies listed on the Indonesian Stock Exchange (BEI) between 2017 and 2019, totaling 48 companies. Utilizing multiple linear regression analysis, the research undertook descriptive statistics, impression statistics, and classical assumption tests, followed by hypothesis testing to empirically assess the relationships. The findings shed light on the influence of these governance mechanisms on financial performance, offering insights into their effectiveness in shaping organizational outcomes. This contemporary analysis contributes to the literature by providing empirical evidence regarding the roles of independent commissioners, audit committees, and board of directors in enhancing or detracting from company performance, thereby informing corporate governance practices and strategies for maximizing financial outcomes.
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