Family Control and Corporate Performance: The Role of Independent Commissioners in Reducing Agency Problems
Rosmiati Jafar, Basuki Basuki, Windijarto Windijarto, Rahmat Setiawan

Universitas Airlangga

Abstract

This research analyses the effect of family control on corporate performance with the proportion of independent commissioners as a moderating variable. The sample of this research is manufacturing sector companies listed on the Indonesia Stock Exchange for the 2012-2018 period with 477 observations. This research found that family control has a significant negative effect on corporate performance. The other result found that the proportion of independent commissioners significantly weakens the negative effect of family control on corporate performance.

Keywords: Family Control, Corporate Performance, Independent Commissioners, Agency Problems, Corporate Governance, Family Business

Topic: Corporate governance