Corporate governance and financial performance of manufacturing companies in Indonesia

2026-07-08T07:30:56+00:00

This study aims to provide empirical evidence on the effect of corporate governance mechanisms, proxied by board size, independent commissioners, family connections, and audit committees, on corporate financial performance, as measured by Return on Assets (ROA). The population of this study comprises manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2024 period. Using a purposive sampling technique, 195 firm-year observations were selected. Data were analyzed using panel data regression with the Fixed Effect Model (FEM) employing Stata version 17. The findings reveal that board size, independent commissioners, family connections, and audit committees all have a positive and statistically significant effect on financial performance. These results suggest that robust internal governance mechanisms are effective in mitigating agency costs and enhancing corporate performance. Furthermore, the findings support the Alignment Effect perspective, indicating that family-connected boards can optimize the utilization of corporate assets and align managerial interests with those of shareholders. The study provides important implications for both corporate managers and regulators. Manufacturing firms are encouraged to maintain and strengthen governance structures to improve organizational performance, while regulators are expected to enhance substantive supervision regarding the implementation of good corporate governance practices.

Managerial Innovation and the Resilience of Agri-Food SMEs in Africa: An Analysis of the Role of Entrepreneurial Culture in Cameroon

2025-12-27T07:53:51+00:00

This study examines the influence of managerial innovation on the organizational resilience of agri-food small and medium-sized enterprises in Cameroon, with particular attention to the mediating role of entrepreneurial culture. Anchored in a context characterized by institutional instability, recurrent economic shocks, and heightened environmental uncertainty, the research develops and empirically tests an integrative conceptual model. Using survey data collected from 154 SME owner-managers, the study adopts a quantitative methodology and applies partial least squares structural equation modeling to assess both direct and indirect relationships among the constructs. The findings demonstrate that managerial innovation exerts a positive and significant effect on organizational resilience, enabling firms to better absorb, adapt to, and recover from systemic disruptions. Moreover, this relationship is partially mediated by entrepreneurial culture, suggesting that innovative managerial practices yield stronger resilience outcomes when embedded within organizational values that promote creativity, initiative, cooperation, and risk tolerance. By highlighting the interplay between managerial practices and culturally embedded resources, this study advances the literature on SME resilience in emerging economies, particularly within underexplored African contexts. From a practical standpoint, the results offer actionable insights for SME managers and policymakers seeking to design strategies that enhance adaptive capacity and long-term sustainability in volatile environments.

International journal of business, economics and management

Corporate governance and financial performance of manufacturing companies in Indonesia

Managerial Innovation and the Resilience of Agri-Food SMEs in Africa: An Analysis of the Role of Entrepreneurial Culture in Cameroon