PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN BUMN: PERAN MODERASI UKURAN PERUSAHAAN DAN KOMPLEKSITAS OPERASIONAL

Abstract

This study examines the relationship between corporate governance mechanisms and financial performance in Indonesian State-Owned Enterprises (SOEs), with firm size and operational complexity as moderating variables. Drawing from agency theory and stewardship theory, this research investigates how board independence, audit committee effectiveness, ownership concentration, and managerial compensation affect financial performance in the unique context of SOEs. Using panel data from 47 SOEs over a 7-year period (2018-2024) with 329 firm-year observations, this study employs fixed-effects regression models with robust standard errors. Multiple financial performance measures are used including Return on Assets (ROA), Return on Equity (ROE), Economic Value Added (EVA), and Tobin's Q to capture both accounting-based and market-based performance. The findings reveal that board independence has a significant positive effect on financial performance (β=0.312, p<0.01), while audit committee effectiveness shows the strongest impact (β=0.445, p<0.001). Ownership concentration demonstrates a curvilinear relationship with performance, showing positive effects up to 65% government ownership then declining thereafter. Managerial compensation shows positive effects but only when aligned with long-term performance metrics. Firm size positively moderates the relationship between board independence and performance (β=0.186, p<0.05), while operational complexity negatively moderates the audit committee effectiveness-performance relationship (β=-0.203, p<0.05). Additional analysis reveals that governance mechanisms are more effective in commercially-oriented SOEs compared to public service-oriented ones. These findings contribute to corporate governance theory by providing evidence from emerging economy SOE context and offer practical insights for policymakers and SOE managers in designing effective governance structures.