Family control and corporate performance: the role of independent commissioners in reducing agency problems

• Published in: Gestão & Produção 2024, Vol.31
• Main Authors: Jafar, Rosmiati, Basuki, Basuki, Windijarto, Windijarto, Setiawan, Rahmat
• Format: Article
• Language: eng ; por
• Subjects: Agency problems; Corporate governance; Corporate performance; ENGINEERING, MANUFACTURING; Family business; Family control; Independent commissioners
• ISSN: 0104-530X; 1806-9649; 1806-9649
• DOI: 10.1590/1806-9649-2024v31e7923

Abstract This study examines the influence of family control on firm performance, taking into consideration the moderating variable of the proportion of independent commissioners. The sample for this research consists of manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2018, with 477 observations. Ordinary Least Squares (OLS) regression analysis and Moderated Regression Analysis (MRA) techniques were employed to test the hypotheses. The findings of this research indicate that family control has a significant negative impact on firm performance. Additionally, it was found that the proportion of independent commissioners significantly weakens the negative influence of family control on firm performance. Resumo Esta pesquisa analisa o efeito do controle familiar no desempenho corporativo tendo a proporção de conselheiros independentes como variável moderadora. A amostra desta pesquisa são empresas do setor manufatureiro listadas na Bolsa de Valores da Indonésia para o período 2012-2018, com 477 observações. Este estudo utiliza técnicas de mínimos quadrados ordinários (OLS) e análise de regressão moderada (MRA) para chegar aos resultados. Esta pesquisa descobriu que o controle familiar tem um efeito negativo significativo no desempenho corporativo. O outro resultado concluiu que a proporção de comissários independentes enfraquece significativamente o efeito negativo do controle familiar no desempenho empresarial.