Corporate Governance and Managerial Misconduct: Evidence from Indonesia

Nureni Wijayati

    Onderzoeksoutput

    470 Downloads (Pure)

    Samenvatting

    The dissertation aims at investigating how corporate governance mechanisms can mitigate opportunities for deviant managerial behaviour in Indonesia. As an emerging country, the corporate governance practices in Indonesia are different from developed countries. Since the early 2000s, Indonesia has improved its corporate governance practices through a better regulatory framework. However, Indonesia has been relatively slower in reforming corporate practices as compared to other developing countries in the Southeast Asia region. The research in this thesis consists of four studies. Study 1 sheds light on the role of the institutional framework in mitigating opportunities for corruption. Study 2 deals with the perceptions of external auditors when assessing fraud risks. Study 3 investigates the interaction between the board of directors and the change of the institutional framework, and its impact on the extent to which firms that have directors with political connections perform differently from firms without these connections. Study 4 analyses the link between board characteristics, transparency, and earnings management. Overall, the results of the empirical studies suggest that strong corporate governance mechanisms are important for the performance of companies in an emerging economy such as Indonesia. Having sound corporate governance practices ensures that checks-and-balances are put in place to prevent misbehaviour. Investing in corporate governance is critical not only for long-run business sustainability, but also for the economy as a whole. The thesis also shows that transparency and accountability create public trust, which may lead to attracting investors and stimulating economic growth.
    Originele taal-2English
    KwalificatieDoctor of Philosophy
    Toekennende instantie
    • Rijksuniversiteit Groningen
    Begeleider(s)/adviseur
    • Holzhacker, Ron, Supervisor
    • Hermes, Niels, Supervisor
    • Utama, S., Supervisor, Externe Persoon
    Datum van toekenning17-sep-2020
    Plaats van publicatieGroningen
    Uitgever
    DOI's
    StatusPublished - 2020

    Citeer dit