INDEPENDENCE, SIZE AND PERFORMANCE OF THE BOARD: AN EMERGING MARKET RESEARCH

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Abstract

The purpose of this article is to find the link between board independence, board size and BPD (regional development bank) performance for describing the corporate governance in regional development bank. The sample of firms consists all 26’s BPD in Indonesia in the period 2010-2014; we take secondary data from the annual report of each BPD, total 203 top executives who are members of the boards of all BPD in Indonesia. The results are the influence of the board independence and board size on the BPD performance. The sample employed all the members of the boards of BPD in Indonesia giving us a confidence in generalization our findings. The statistical method used to test the hypotheses is OLS regression. This method was applied to measure the relationship between board independence, board size and BPD performance. The results suggested that there is a positive relationship between board independence, board size and BPD performance.

Keywords: Corporate Governance, Board Independence, Board Size, BPD Performance

Received: 22.10.2017

Accepted: 18.12.2017

JEL Classification: G34, G21

How to cite this paper: Tulung, J. E., & Ramdani, D. (2018). Independence, size and performance of the board: An emerging market research. Corporate Ownership & Control, 15(2-1), 201-208. https://doi.org/10.22495/cocv15i2c1p6