Influences of Roles and Responsibilities of the Board of Directors and Internal Control on Firm Performance of Companies Listed on the Market for Alternative Investment (mai)
Keywords:
Internal control, MAI companies, Responsibilities of the Board of DirectorsAbstract
The purpose of this research was to examine the effects of the roles and responsibilities of the board of directors and internal control on firm performance of listed companies on the Market for Alternative Investment (mai). The sample group used in this study were 132 listed companies in the mai from all industries excluding the financial industry. The study used secondary data collected from financial statements, form 56-1 and annual reports issued from 2017 to 2019 using the Set Market Analysis and Reporting Tool (SETSMART) on the Internet. The statistics used to analyse the data were descriptive and multiple regression analysis at a statistically significant level of .05. The study results revealed that CEO duality negatively affected return on asset (ROA) and return on equity (ROE), while independent boards similarly had a negative effect on ROA but had a positive effect on ROE, and conversely, executive committee remuneration had a positive effect on ROA but negatively affected ROE. Additionally, it was found that the components of internal control comprising control environment, risk assessment, and information and communication affected ROA whereas the components of risk assessment, control activities, and information and communication affected ROE. These effects had a statistically significant level of .05.
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