Muhammad, Idris and Mohamad, Amir (2018) Directors’ Characteristics and its impact on firm’s productivity and performance: The case of trade and industry listed-firms in Indonesia. Interciencia Journal. (Unpublished)
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Abstract
This study aims to investigate the directors’ charateristics and its impact on firm’s productivity and firm performance. Directors’ characteristics contains of the level of education (high school, undergraduate, graduate and post-graduate), the type of education (business and non-business), the directors’ tenure. Firm’s productivity is measured using the ratio of sales and the number of employees. Firm performance is measured using the ratio of return on assets (ROA). The population is all listed-firms in the sector of trade and industry with a total of 112 firms and the sample size is 87 firms that is chosen proportionately from each sub-sectors. Due to the missing data and incomplete data, the final sample is 44 firms with a period of 2010 to 2016. A quarterly financial report is used and thus there is 28 financial reports (2010 to 2016), and the total observation is 1232. The ordinary least square (OLS) is used to analyse the data, and prior to analysis, a normality test of data is employed using Kolmogorov-Smirnov test. The specification test such as normality test, autocorrelation test, multicolinearity test is performed. The result reveals that the directors’ charateristics has a significant effect on firm’s productivity and firm performance. This significant result is supported by the type of directors’ education that is more than 80% of directors have a master degree and a bachelor degree qualification and most of the directors have an education major in business. Moreover, most of the directors has more that five years of tenure, however, the term of office of the chief executive needs to be limited, because it will impact on saturation and innovativeness. Keyword directors’ characteristics, firms’ productivity, firm performance, Indonesia.
| Item Type: | Article |
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| Subjects: | Ekonomi dan Bisnis |
| Divisions: | Lain - Lain > Jurnal |
| Depositing User: | Irwan syah |
| Date Deposited: | 28 Apr 2021 07:11 |
| Last Modified: | 28 Apr 2021 07:11 |
| URI: | http://repository.um-palembang.ac.id/id/eprint/16145 |
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