Does Commissioner Characteristic Determine Firm Performance?
Diana Riyana H (a*), Suherman (b), Gatot Nazir Ahmad (c), Asyifa Salsabila (d)

Universitas Negeri Jakarta
Faculty : Post Graduate
Program Doctoral Management

Abstract

This study discusses the relationship between the characteristics of commissioners to the performance of banking companies in Indonesia. In this study, the variables that represent the characteristics of the commissioners are the percentage of age commissioners over 55 years old and independent commissioners in the company. Meanwhile, to measure the performance of banking companies use ROA and ROE. The sample in this research covers 4 major banks in Indonesia during 2017-2021. By conducting ordinary least square of panel data this research obtained an increasing percentage of age commissioners over 55 years old, which will increase ROA but decrease ROE. And increasing the percentage of independent commissioners will increase ROA and ROE.

Keywords: Independent Commissioner, Age of Commissioner, Return on Assets, Debt to Equity Ratio

Topic: Management