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The purpose of this paper is to extend the existing, yet limited, literature on the influence of ownership concentration and family control on the demands for high-quality audits. This study focusses on an emerging market, namely, Indonesia, where ownership concentration and family control are relatively higher than those in developed markets.

The sample consists of 787 firm-year observations of public firms listed on the Indonesia Stock Exchange. Following prior studies, a firm is considered using a higher quality audit when its external auditor is one of the Big 4 audit firms. Logistic regressions are employed to test research hypotheses.

Empirical evidence obtained reveals that firms with higher ownership concentration are more likely to hire a Big 4 auditor. Hence, in such firms, high-quality audits are employed to mitigate agency issues. However, when the controlling shareholder is a family, the association between ownership concentration and the demands for high-quality auditors turns negative, implying that family-controlled firms tend to sustain opaqueness gains by hiring lower quality auditors.

Previous empirical studies examining the influence of ownership concentration and family control on auditor choice are relatively limited in the literature and are heavily focussed on developed economies. In addition, the present study is one of the first to investigate the association between family control and auditor choice in the context of a developing economy.

The purpose of the present paper is to examine the influence of the educational qualifications of board members, including the CEO, on the financial performance of Indonesian listed firms. Indonesia is a developing economy that adopts a two‐tier board system.

This study employs a sample comprising 160 firms listed on the Indonesia Stock Exchange (IDX). Tobin's Q and return on assets (ROA) are used as measures of financial performance. It uses four proxies for board members' educational qualifications, namely postgraduate degrees, degrees obtained from prestigious universities, degrees obtained from developed countries, and degrees in financial disciplines. Regressions are performed separately for the supervisory board, management board, and CEO.

This study provides empirical evidence that the educational qualifications of board members and the CEO matter, to a particular extent, in explaining either ROA or Tobin's Q. For example, CEOs holding degrees from prestigious domestic universities perform significantly better than those without such qualifications.

Even though intellectual competence should appear to be one of the considerations in the appointment of board members, educational qualification is not always a good proxy for superior advising or managerial quality. There may be many other factors that need to be considered, such as experiences, managerial skills, networks, and other skills obtained outside schools. As such, the establishment of a nomination committee, which is expected to provide independent recommendations on qualified candidates to serve in the boardrooms, plays an important role.

Empirical studies focusing on the influence of the educational backgrounds of board members and the CEO on financial performance are still rare in the literature. This study is among the first to address such an issue in the context of a developing economy.

The purpose of this paper is to investigate the influence of family control on the extent of voluntary disclosure in the annual report of Indonesian listed firms. Further, it seeks to investigate the role of corporate governance mechanisms in explaining the association between family control and voluntary disclosure. Governance mechanisms addressed here include board independence and institutional ownership.

This study employs a sample comprising non-financial firms on the Indonesia stock exchange that published the 2010 annual report. The voluntary disclosure index is computed for each sample firm, based on content analysis of the annual report. Cross-sectional regressions are performed to test research hypotheses.

Our evidence reveals that family control negatively and significantly influences the extent of information disclosure. This finding suggests that family-controlled firms have lower motivation to disclose additional voluntary information, which might unexpectedly expose private benefits maintained by the controlling family. We also find that the relationship between institutional ownership and disclosure is stronger in family firms. However, independent commissioners do not contribute to improving the extent of disclosure by family firms.

The present study contributes to the rare existing literature addressing the relation of family control to information disclosure. Further, the role of corporate governance mechanisms in promoting greater information transparency in family-controlled firms is still very rarely examined.

The purpose of this paper is to examine whether and how underpricing is associated with board structure and corporate ownership among firms conducting initial public offerings (IPOs) in the Indonesian equity market.

To capture the most recent development, the sample comprises 101 firms conducting IPOs in Indonesia's primary equity market in the period of 2003‐2011. The explanatory variables consist of board size, board independence, ownership concentration, and institutional ownership. In further analysis, the authors perform regressions considering three types of the controlling shareholder, namely families, foreign entities, and the government.

Providing some support for signaling theory, it is found that board independence is positively related to the level of underpricing. Further, this study provides evidence that the level of underpricing is negatively associated with both board size and institutional ownership, indicating that these two governance mechanisms play important roles in mitigating information asymmetry between the issuer and potential investors. Ownership concentration is insignificant in explaining the first‐day returns. When the type of corporate control is taken into account, it is revealed that government‐controlled companies tend to experience higher underpricing.

This paper contributes to the IPO underpricing literature since the influence of corporate governance mechanisms on initial returns is relatively under‐researched, particularly within the context of emerging markets.

The purpose of this paper is to examine the relationship between gender diversity on the management board and the financial performance of Indonesian listed companies.

Cross‐sectional regression analysis was conducted based on a sample comprising 92.4 percent of public firms listed on the Indonesia Stock Exchange (IDX). The dependent variable was firm performance, measured by return on assets (ROA) and Tobin's q. The explanatory variable was gender diversity, proxied by the proportion of women, the presence of women, and a gender heterogeneity index.

It was found that the representation of female top executives is negatively related to both ROA and Tobin's q, suggesting that female representation is not associated with an improved level of performance. From correlation analysis, the results also reveal that smaller firms, which tend to be family‐controlled, are more likely to have a higher proportion of female members on management boards. This implies that large firms are “tougher” for women in terms of opportunities to hold seats on the board.

The data only cover one single financial year (2007); hence, the results may lack generalizability.

Studies on the relationship between board gender diversity and financial performance have been conducted in the context of a few developed economies. This study contributes to the literature by examining such an issue in a developing economy that has a different environment from that of developed economies.

In 2011, the Malaysian cabinet approved the policy that all board of directors of companies listed on the Bursa Malaysia should consist of 30 per cent women in decision-making positions by the year 2016. The purpose of this paper is to examine the association between the presence of women on the board and firms’ performance following the introduction of the diversity policy.

The analysis uses the information of the top 200 Malaysian public listed companies for the financial year 2011–2013. The multiple regression analysis is used to estimate the relationship between the firm performance (return on assets (ROA)) as the dependent variable and the independent variables.

The results show that during the period under study, the proportion of women directors on board is negatively correlated with ROA. This indicates that the firm performance may not be dependent on the number of women directors on board. However, the results of the study also show that the academic backgrounds of the women board members add some value toward generating better firm performance.

A small sample size of only the top 200 public listed companies was utilised. Consequently the outcome may not be generalisable to smaller public companies or private firms. Another limitation is regarding the sample period. Taking only one year before and one year after the policy’s approval may be too short of the period under study and may be too early to study the impact of the policy. Future studies could sample a longer period.

The findings encourage public listed companies to appoint women with the necessary qualities as members of the board and not to simply increase the number of women on boards.

There is a lack of work on studying women’s effectiveness on board in developing countries, whereby previous work and literature review were predominantly based upon the experience of Western economies. This study, thus, contributes to the rising literature on women board member representation based on the firm performance of the top 200 listed companies in Malaysia.

The purpose of this paper is to explore disclosure on corporate governance mechanisms in annual reports of Islamic commercial banks in Indonesia.

Employing a sample comprising seven Islamic commercial banks in Indonesia, the present study constructs the so‐called Corporate Governance Disclosure Index (CGDI) to score the banks' disclosure level. Corporate governance mechanisms addressed in this study include Shariah Supervisory Board, the Board of Commissioners, the Board of Directors, board committees, internal control and external audit, and risk management.

It is revealed that Bank Muamalat and Bank Syariah Mandiri, the county's two largest and oldest Islamic commercial banks, score higher than their peers. Disclosure of the sample banks on some dimensions, such as board members and risk management, is found to be strong. On the other hand, disclosure on internal control and board committees tends to be weak.

This study shows that the average disclosure level among the sample banks is relatively low. Hence, this result has important implications for the enhancement of corporate governance disclosure of Islamic banks, thereby wider acceptance and enhanced reputation could be gained.

This paper is believed to be among the first to explore the practice of disclosure on corporate governance mechanisms among Islamic commercial banks. Additionally, it focuses on Indonesia, the largest Muslim country that has a different institutional setting from that in other Muslim countries.

This study examines the effect of working capital management and board diversity on firm profitability and firm value for a sample of Indonesian firms listed in the LQ45 index. The interaction of board diversity components with working capital management adds a comprehensive discussion to enhancing working capital management efficiency.

This study engages a panel multiple regression method. Data from a sample of LQ45 companies from 2010 to 2016 are analysed using a fixed and a common effect model. Board diversity is further analysed in interaction variables, whether it holds the moderating role in the relationship of working capital and firm performances. This study operates return on capital employed (ROCE) as the proxy of profitability performance and EVA-Spread for the firm's value performance. The simultaneous effect test is used for the robustness test.

The results indicate that working capital management and board diversity have no significant impact towards profitability. However, they significantly positively impact firm value, meaning that the market is attracted by effective working capital management and board diversity. However, the interaction variable analysis shows that gender diversity and education level diversity weaken the impact of working capital management towards firm value.

This study is not limited to one industry; therefore, future studies may focus on one industry and detect the pattern of working capital components in the particular industry. This study focuses on quantitative numbers to explain board diversity's interaction in working capital management to maximise shareholders' wealth. Future studies may consider a qualitative discussion to describe the quality of women's presence on the board, education level and educational background of board members.

Unlike most studies in which authors relate working capital and board diversity to firm performances separately, this study combines both components and analyses whether board diversity can act as a moderator effect. As part of corporate governance, it is expected that board diversity can enhance working capital management efficiency.

Using the Indonesian setting where the government formally limits the presence of busy commissioners, the authors investigate whether a board containing busy commissioners could be beneficial or detrimental for firm performance.

The authors propose an econometric model focusing on the impact of busy commissioners on the firm's profitability. The authors are also interested in investigating whether the effect is different between small and large firms and between mature and non-mature firms. A sample of 392 Indonesian listed firms from 2014 to 2020 is used in this study.

The authors find a negative association between busyness and performance and this result is robust across different estimations and econometrics strategies. The authors also document that the negative impact of busy directors diminishes particularly in young and small firms. The authors also find that the impact is more pronounced in state-owned firms.

From a firm point of view, the result suggests that the companies should be aware that appointing busy commissioners in the board structure can detriment market-based performance. The listed firms should also understand that busy commissioners are inefficient, especially if these firms are large, mature and state-owned.

To the best of the authors’ knowledge, this is the first study investigating the relation between busy commissioners and performance by considering age, firm size and state-owned firms as a moderator in a sample of Indonesian listed firms.