Title:
The Effect of Corporate Governance and Ownership Structure on the Firm Performance: The Case of State-owned Enterprises Listed on the Indonesia Stock Exchange

Authors:
Rahma Fidela Noviyani and Sutrisno Sutrisno, Indonesia

Abstract:

This study aims to examine the influence of corporate governance and ownership structure on firm performance and firm value of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX). The corporate governance variables used include the size of the board of commissioners, the proportion of independent commissioners, and the existence of an audit committee, while the ownership structure variables consist of government ownership, institutional ownership, and foreign ownership. Firm performance is measured using Return on Assets (ROA), while firm value is measured by the Tobin's Q ratio. The study population is State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange, with a sample of 19 companies selected through a purposive sampling method. The data analysis technique uses multiple linear regression with the help of EViews software. The results show that the size of the board of commissioners, independent commissioners and audit committee do not significantly affect ROA or Tobin's Q. Government and institutional ownership have a significant positive effect on firm value, but do not affect financial performance. Meanwhile, foreign ownership has a significant positive effect on both performance and firm value. The control variables show that company size does not affect performance, but has a significant negative effect on firm value. In addition, leverage (DER) has a significant negative effect on profitability but not on firm value.

DOI: https://doi.org/10.51505/IJEBMR.2026.1016