PERAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MEDIASI PADA HUBUNGAN ANTARA GROUP AFILIASI DAN ASSET QUALITY INDEX TERHADAP PROFIT PERFORMANCE
Published:
2026-04-30Downloads
Abstract
This study aims to examine the role of Corporate Governance as a mediating variable in the relationship between Group Affiliation, Asset Quality Index, and Profit Performance in palm oil agribusiness sub-sector companies listed on the Indonesia Stock Exchange. The study applies an explanatory quantitative approach using secondary data from annual reports and financial statements for the 2020-2024 period. The sample was selected through purposive sampling and consisted of 20 companies with 100 firm-year observations. Profit Performance is measured by Return on Assets (ROA), Group Affiliation is measured using a dummy variable, Asset Quality Index is calculated from the proportion of non-current assets to total assets, and Corporate Governance is proxied by the proportion of independent commissioners. The results show that Group Affiliation and Asset Quality Index have positive and significant effects on Corporate Governance at the 10% level. Group Affiliation has a negative and significant effect on ROA, while Asset Quality Index and Corporate Governance do not significantly affect ROA. The Sobel test indicates that Corporate Governance does not mediate the effects of Group Affiliation or Asset Quality Index on Profit Performance. These findings demonstrate that group affiliation does not automatically improve profitability when agency costs, related-party transactions, coordination burdens, and asset inefficiency outweigh the benefits of group synergy.
Keywords:
Asset Quality Index Corporate Governance Group Affiliation Palm Oil Agribusiness Profit Performance ROAReferences
Agbaje, W. H., & Oloruntoba, S. R. (2018). An assessment of impact of financial statement fraud on profit performance of manufacturing firm in Nigeria: A study of food and beverage firms in Nigeria. European Journal of Business and Management.
Akerlof, G. A. (2007). The missing motivation in macroeconomics. American Economic Review, 97(1), 5-36. https://doi.org/10.1257/aer.97.1.5 DOI: https://doi.org/10.1257/aer.97.1.5
Almeida, H., Kim, C. S., & Kim, H. B. (2015). Internal capital markets in business groups: Evidence from the Asian financial crisis. Journal of Finance, 70(6), 2539-2586. https://doi.org/10.1111/jofi.12309 DOI: https://doi.org/10.1111/jofi.12309
Almeida, H. V., & Wolfenzon, D. (2006). A theory of pyramidal ownership and family business groups. Journal of Finance, 61(6), 2637-2680. https://doi.org/10.1111/j.1540-6261.2006.01001.x DOI: https://doi.org/10.1111/j.1540-6261.2006.01001.x
Archambeault, D. S., DeZoort, F. T., & Hermanson, D. R. (2008). Audit committee incentive compensation and accounting restatements. Contemporary Accounting Research. DOI: https://doi.org/10.1506/car.25.4.1
Bamiatzi, V. (2023). Business group affiliation and firm performance: Evidence from emerging markets. Journal of Business Research.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. DOI: https://doi.org/10.1177/014920639101700108
Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24-36. DOI: https://doi.org/10.2469/faj.v55.n5.2296
Berger, A. N., & Bouwman, C. H. S. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146-176. DOI: https://doi.org/10.1016/j.jfineco.2013.02.008
Cantero-Saiz, M., et al. (2024). Corporate governance and profit performance: Evidence from recent firm-level studies.
Chakraborty, I. (2013). Does business group affiliation affect firm performance? Evidence from India. Journal of Policy Modeling.
Changwony, F. K., & Kyiu, A. (2024). Corporate governance, sustainability, and firm performance.
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation. Contemporary Accounting Research. DOI: https://doi.org/10.1111/j.1911-3846.1996.tb00489.x
Forgione, A. F., & Migliardo, C. (2025). Asset quality and corporate financial stability.
Grant, R. M. (1991). The resource-based theory of competitive advantage. California Management Review, 33(3), 114-135. DOI: https://doi.org/10.2307/41166664
Hair, J. F., et al. (2022). Multivariate Data Analysis. Cengage Learning.
Hayes, A. F. (2022). Introduction to Mediation, Moderation, and Conditional Process Analysis. Guilford Press.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. DOI: https://doi.org/10.1016/0304-405X(76)90026-X
Khanna, T., & Yafeh, Y. (2010). Business groups in emerging markets: Paragons or parasites? In The Oxford Handbook of Business Groups. Oxford University Press. DOI: https://doi.org/10.1093/oxfordhb/9780199552863.003.0020
Kladakis, G., Chen, L., & Bellos, S. K. (2020). Bank asset and informational quality. Journal of International Financial Markets, Institutions and Money, 69. https://doi.org/10.1016/j.intfin.2020.101256 DOI: https://doi.org/10.1016/j.intfin.2020.101256
Klapper, L. F., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 10, 703-728. DOI: https://doi.org/10.1016/S0929-1199(03)00046-4
Kusumawardani, A., Yudaruddin, R., & Yudaruddin, Y. A. (2021). Corporate governance policy on the impact of cash holding in Indonesia. Universal Journal of Accounting and Finance, 9(4), 594-603. DOI: https://doi.org/10.13189/ujaf.2021.090407
Manisa, D. E., & Defung, F. (2018). Pengaruh pengungkapan sustainability report terhadap kinerja keuangan perusahaan infrastruktur yang terdaftar di Bursa Efek Indonesia. Forum Ekonomi, 19(2), 174. DOI: https://doi.org/10.29264/jfor.v19i2.2124
Palepu, K. (1985). Diversification strategy, profit performance and the entropy measure. Strategic Management Journal. DOI: https://doi.org/10.1002/smj.4250060305
Paminto, A., Ulfah, Y., Ikbal, M., Irwansyah, & Darma, D. C. (2020). Structure of corporate governance important to reduce manipulation of financial statement: Empirical studies in Indonesia context.
Penrose, E. (1959). The Theory of the Growth of the Firm. Oxford University Press.
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737-783. DOI: https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355-374. DOI: https://doi.org/10.2307/1882010
Tricker, B. (2025). Corporate Governance: Principles, Policies, and Practices.
Waheed, A., et al. (2024). Litigation risk, ownership structure and payout policy: An agency theory perspective. Global Business Review. DOI: https://doi.org/10.1177/09721509241263740
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. DOI: https://doi.org/10.1002/smj.4250050207
License
Copyright (c) 2026 Maya Sari, Felicity Defung, Yana Ulfah
This work is licensed under a Creative Commons Attribution 4.0 International License.
Downloads
How to Cite
