This study thoroughly examines the impact of board size, independent board commissioners, audit committee size, and leverage on the financial performance of consumer non-cyclical sector companies listed on the Indonesia Stock Exchange (IDX). Utilizing panel data regression and the Random Effect Model (REM), the analysis covers 192 observations from 64 companies over the period 2021 to 2023. Secondary data were sourced from financial statements published on the IDX and company websites. The results reveal that independent board commissioners and audit committee size have a positive and significant influence on financial performance, whereas board size and leverage exhibit no statistically significant effect. The novelty of this research lies in its focused investigation of corporate governance factors in conjunction with leverage within the context of consumer non-cyclical companies during the critical post-pandemic economic recovery phase. The findings underscore the importance for management to enhance the role and effectiveness of independent commissioners and audit committees to improve financial outcomes. Furthermore, the study contributes methodologically by affirming the suitability of the Random Effect Model for panel data analysis in governance-performance research. These insights provide valuable guidance for company executives, investors, and policymakers aiming to optimize corporate governance frameworks to sustain and elevate financial performance.
Fitri et al. (Tue,) studied this question.
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