Browsing by Author "Rodgers, Waymond"

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    DOES THE ROLE OF BOARD COMMISSIONERS CAN INCREASE EXECUTIVE COMPENSATION AND COMPANY FINANCIAL PERFORMANCE IN INDONESIA COMMERCIAL BANKING?
    (Solid State Technology Volume: 63 Issue: 3, 2020) Kartadjumena, Eriana; Rodgers, Waymond
    This study investigates whether the board of commissioners (BoCs) role in Indonesia commercial banks could shape the motivation of the top management or executives to achieve company goals of higher company financial performance in a concentrated ownership dominant context. This study analyses data from 252 firm-year observations as a new unbalanced data panel from the population of 39 Indonesia commercial banks listed in the Indonesia Stock Exchange for the period 2007-2014. This study implemented a decision-making framework model, specifically the Throughput Model, which considers the concepts of perception (P), information (I), and judgment (J) in the decision making process (D). This study found reveals that of the BoCs role in two-tier corporate governance (CG) systems promotes higher payment in executive compensation and better company financial performance. This study also found that the concentrated ownership structure has strengthened the positive relationship between the BoCs role and executive compensation in order to increase company financial health and market value performance. The role of the BoC in a concentrated ownership structure context could not provide effective protection of shareholders (large ownership) and other stakeholders (minority ownership) from the expropriation behaviour of managers through excessive of their compensation. This study reveals that those mechanisms are important mechanisms in making a company's decision not only to align shareholders’ interests (according to the agency theoretic pathway) but also for broader stakeholders’ interests (according to stakeholders’ pathway) to increase both companies financial health and market value performance. This study provides lessons from the past for decision makers in understanding the stakeholders' concern of the role of BoCs that is vital to understand corporate behaviour to set up policy in order to regulate corporate activities, determine objectives and choose the strategies in a concentrated ownership dominant context.
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    THE INFLUENCE OF BOARD OF COMMISSIONERS STRUCTURE ON CORPORATE SUSTAINABILITY CONCERNS AND FINANCIAL PERFORMANCE IN INDONESIAN COMMERCIAL BANKS
    (Jour of Adv Research in Dynamical & Control Systems, Vol. 11, 03-Special Issue, 2019) Kartadjumena, Eriana; Rodgers, Waymond
    This study examines mandatory internal corporate governance mechanism, particularly the Board of Commissioners (BoCs) structure in Indonesian commercial banks influence sustainabilityconcerns and financial performance. This study encapsulates three areas of research by examining the shareholder and stakeholder perspectives into a single empirical study in a developing country context with a two-tier corporate governance system. This study utilises a unbalanced data panel of 252 firm-year observations from a population of 39 Indonesian listed commercial banking firms during the period of 2007-2014, and draws both shareholder and stakeholders perspectives in two different research models. It does so by utilising on a decision-making model framework, the Throughput Model, which allows identification of the impact of various steps in the decision-making process.This study provides evidence that the BoCs structure in the Indonesian banking acts as an internal governance mechanism in encouraging company to be more concerned with corporate sustainability actions, i.e., economic, environmental, and social activities. This study also finds according the shareholder perspective, theBoCs structure has positive influence on sustainability concerns that may dampen the firm's market value. In contrast,from the stake holder perspective, the BoCs structure has positive influence on corporate sustainability concernsthatwill increase firm’s market value performance via its financial health performance.