INDEPENDENT COMMISSIONERS AND OWNERSHIP STRUCTURES ON FIRM PERFORMANCE

Abstract

This study investigates the relationship between board independence, ownership structure, and firm performance in publicly listed food and beverage companies in Indonesia. The sector was chosen for its economic importance, operational vulnerabilities, and the prevalence of concentrated ownership, all of which may influence corporate governance effectiveness. The analysis utilizes secondary data from 20 companies listed on the Indonesia Stock Exchange between 2018 and 2024, yielding 140 firm-year observations. Multiple regression analysis is conducted, using Tobin’s Q as a proxy for firm performance and incorporating year controls to account for temporal effects. The empirical results reveal a negative and significant association between independent commissioners and firm performance, while managerial ownership and foreign ownership do not demonstrate significant relationships. These findings indicate that governance arrangements may not necessarily improve market valuation in firms with concentrated ownership and sector-specific operational challenges. This study provides sector-specific evidence from the Indonesian food and beverage industry and underscores the importance of enhancing the substantive effectiveness of governance mechanisms.