Business, Management and Accounting
8 years ago

Independent Boards Increase Costs for Indonesia's Top Companies

Abstract of Business Strategy and Social Sciences
The Impact of Ownership Structure and Independent Commissioner on Agency Cost of Indonesia Most Trusted Companies Listed
Arief Yulianto, Achmad Slamet, Widiyanto Widiyanto, Rafika

Paper Summary

The study looked at how ownership structure and independent commissioners impact agency costs in Indonesia's most trusted companies. They analyzed data from 102 firms over a period of 2007 to 2015. The researchers found that managerial and institutional ownership did not significantly affect agency costs, but having more independent commissioners increased these costs. This suggests that reducing the number of independent commissioners could help lower agency costs for these companies.

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