Stronger Corporate Governance Boosts Financial Performance, but Capital Structure Doesn't Moderate the Relationship
The study looked at how good corporate governance affects the financial performance of manufacturing companies in the Indonesia Stock Exchange. They found that institutional ownership and managerial ownership have a significant impact on financial performance. Additionally, the audit committee, independence of commissioners, and independence of the board of directors also influence financial performance when considered together. However, the researchers did not find evidence that the capital structure of these companies moderates the relationship between good corporate governance and financial performance.