The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia

For the last few decades, the Indonesian Oil Palm industry has contributed to economic development by reflecting on the percentage contribution to the Gross Domestic Product. However, most of those companies had a history of poor financial performance. Poor performance has been linked to inefficient...

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Main Author: ,, Asna
Format: Thesis
Language:eng
eng
Published: 2022
Subjects:
Online Access:https://etd.uum.edu.my/11175/1/s99007_01.pdf
https://etd.uum.edu.my/11175/2/s99007_02.pdf
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spelling my-uum-etd.111752024-06-12T02:15:20Z The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia 2022 ,, Asna Kamaruddin, Roslina College of Business (COB) College of Business HD2709-2930.7 Corporations HD28-70 Management. Industrial Management For the last few decades, the Indonesian Oil Palm industry has contributed to economic development by reflecting on the percentage contribution to the Gross Domestic Product. However, most of those companies had a history of poor financial performance. Poor performance has been linked to inefficient corporate governance mechanisms, corporate social responsibility, and board equity ownership. Thus, this study aimed to examine the effects of corporate governance mechanisms, corporate social responsibility, and the moderation effect of board ownership equity between the specified linkages. A quantitative research design approach was chosen, with a questionnaire developed for primary data collection via a survey of 281 Indonesian oil palm companies’ board of directors from three regions using the stratified random sampling technique. The partial least square regression was applied to analyze the relationship between the variables. The findings show that the dimension of corporate governance, such as independent director, female director, and board process, has significant positive effects on company performance. Likewise, environmental responsibility and community responsibility as dimensions of corporate social responsibility significantly positively affect company performance. Based on the results of the moderation effects, board ownership equity strengthens the relationship between corporate governance, corporate social responsibility, and company performance. The findings have several implications for the company’s owner, including raising awareness among family businesses about the importance of an independent director as a board member, re-evaluating the size of the board, expanding the list of corporate social responsibility activities that are tax-deductible, creating a solid risk management policy, and encouraging companies to allow board members to have at least 5% of the total company share, as recommended in the Law No. 40 of 2007 on the Regulation of Limited Liability Companies. 2022 Thesis https://etd.uum.edu.my/11175/ https://etd.uum.edu.my/11175/1/s99007_01.pdf text eng 2024-07-26 staffonly https://etd.uum.edu.my/11175/2/s99007_02.pdf text eng public other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Kamaruddin, Roslina
topic HD2709-2930.7 Corporations
HD2709-2930.7 Corporations
spellingShingle HD2709-2930.7 Corporations
HD2709-2930.7 Corporations
,, Asna
The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
description For the last few decades, the Indonesian Oil Palm industry has contributed to economic development by reflecting on the percentage contribution to the Gross Domestic Product. However, most of those companies had a history of poor financial performance. Poor performance has been linked to inefficient corporate governance mechanisms, corporate social responsibility, and board equity ownership. Thus, this study aimed to examine the effects of corporate governance mechanisms, corporate social responsibility, and the moderation effect of board ownership equity between the specified linkages. A quantitative research design approach was chosen, with a questionnaire developed for primary data collection via a survey of 281 Indonesian oil palm companies’ board of directors from three regions using the stratified random sampling technique. The partial least square regression was applied to analyze the relationship between the variables. The findings show that the dimension of corporate governance, such as independent director, female director, and board process, has significant positive effects on company performance. Likewise, environmental responsibility and community responsibility as dimensions of corporate social responsibility significantly positively affect company performance. Based on the results of the moderation effects, board ownership equity strengthens the relationship between corporate governance, corporate social responsibility, and company performance. The findings have several implications for the company’s owner, including raising awareness among family businesses about the importance of an independent director as a board member, re-evaluating the size of the board, expanding the list of corporate social responsibility activities that are tax-deductible, creating a solid risk management policy, and encouraging companies to allow board members to have at least 5% of the total company share, as recommended in the Law No. 40 of 2007 on the Regulation of Limited Liability Companies.
format Thesis
qualification_name other
qualification_level Doctorate
author ,, Asna
author_facet ,, Asna
author_sort ,, Asna
title The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
title_short The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
title_full The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
title_fullStr The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
title_full_unstemmed The effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in Indonesia
title_sort effect of board equity ownership towards the relationships between corporate governance, corporate social responsibility, and company’s performance of oil palm companies in indonesia
granting_institution Universiti Utara Malaysia
granting_department College of Business (COB)
publishDate 2022
url https://etd.uum.edu.my/11175/1/s99007_01.pdf
https://etd.uum.edu.my/11175/2/s99007_02.pdf
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