The Effect of Corporate Governance and Corporate Strategy Toward Family Firm Performance in Indonesia

摘要

This paper aims to analyze the influence of corporate governance and corporate strategy on the performance of family firms listed on the Indonesia Stock Exchange. Corporate Governance is proxied with Family Ownership and Independent Commissioner and Corporate Strategy with Diversification and Compensation Strategy of Directors. This research used a sampling method with purposive sampling, which is a family company listed on the Indonesia Stock Exchange (IDX) from 2014 to 2018. Data analysis used multiple linear regression methods. The results of this study indicated that family ownership had a significant effect on company performance, either using a proxy of ROA or ROE. While the diversification and compensation strategy of directors had no effect firm performance measured by ROA or ROE.