Board of Commissioners Involvement and Shareholder’s Wealth
Zaitul1, Elfiswandib2, Desi Ilonab3
1Zaitul, Economics Faculty, Universitas Bung Hatta, Padang Indonesia.
2Elfiswandib, Economics Faculty, Universitas Putra Indonesia YPTK, Padang Indonesia.
3Desi Ilonab, Economics Faculty, Universitas Putra Indonesia YPTK, Padang Indonesia.
Manuscript received on 16 October 2019 | Revised Manuscript received on 22 October 2019 | Manuscript Published on 02 November 2019 | PP: 484-490 | Volume-8 Issue-2S9 September 2019 | Retrieval Number: B11070982S919/2019©BEIESP | DOI: 10.35940/ijrte.B1107.0982S919
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Using Continental European data on Indonesia, this research investigates the effect of Board of Commissioners involvement which is measured by responsibility, seniority, women participation and independency on shareholder’s wealth. This paper is the first research that examines the association between Board of Commissioners involvement and shareholder’s wealth based on 249 Indonesia listed companies. Panel data analysis was used to assess whether the Board of Commissioners responsibility and independency have positive effect on shareholder’s wealth. Based on the finding, seniority and women involvement have a negative relationship with shareholder’s wealth. These findings have practical implication, i.e. the shareholders should consider the Board of Commissioners involvement in appointing and dismissing them. Theoretically, these findings contributed to the agency theory in the way that the Board of Commissioners involvement could reduce the agency cost and increase the wealth of shareholders.
Keywords: Board of Commissioners Involvement: Shareholder’s wealth.
Scope of the Article: Social Sciences