CORPORATE GOVERNANCE TOWARD 5.0 Case Study From BUMN Companies In Indonesia Ade Manggala Hardianto (a), Raden Irna Afriani(b), Rika Kartika(b*)
a) Doctor in Accounting, Faculty of Economics and Business Universitas Bina Bangsa Banten email ade.manggala[at]binabangsa.ac.id
b) Faculty of Economics and Business Universitas Bina Bangsa Banten, irnaafriani.binabangsa[at]gmail.com, rikakartika.binabangsa[at]gmail.com
Abstract
The role of the board of directors must be based on the potential and role that leads to financial performance and the ratio of independent directors has a positive relationship with corporate financial reporting. The board of change commissioners who are too ^easy to come and easy to go^ can worsen the company^s performance conditions and increase the risks faced by the company and the dual role of the board of commissioners can be a serious problem for the company to maintain its position as a board of commissioners.
The purpose of this research is to determine the role of the board of directors in facing the challenges of Indonesian state-owned enterprises in the future.
Research methodology used is the quantitative correlation between independent and dependent variables with or not using variable control. The study also involved Nine financial ratios to reflect a broader range of corporate conditions.Sample and data, this study used secondary data of financial statements and annual disclosures of state enterprises in Indonesia in 2009 - 2016.The results showed that First, H1 is accepted that skill with or without control variables correlated to Return On Asset and Fixed Asset Turnover. Secondly, H2 is accepted that tenure with or without control variable is not correlated to financial performance. Third, H3 board size with control variable is not correlated to financial performance whereas without control variable correlate to net profit margin and cash ratio. Originality of the research, this study provided an idea of a new board performance director to anticipate bankruptcy indications of firms characterized by ROA and Fixed Asset Turnover.
Keywords: Transparency, A New Board Performance Director, independent director, global change Financial Performance
