Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Do the Implementation of Self Assessment Corporate Governance Increase Firm Performance?

Author(s): Dini Wahjoe Hapsari, Winwin Yadiati, Harry Suharman, Dini Rosdini

The primary objectives of this paper are to comment upon the self-assessment system of state-owned enterprises in Indonesia, assess the relative importance of different cluster industry and provide detailed information on each corporate governance implementation. The population research was 72 non-financial Indonesian state-owned enterprises. The overall score of corporate governance is taken from the annual report in 2020. This study finds that the highest predicate of corporate result is the energy, oil and gas cluster, mineral and coal cluster, infrastructure clusters, logistics clusters. A very good predicate with a score of more than 90. The score assessment result for health cluster, logistic cluster, telecommunication cluster, tourism, and support cluster shows an 85-90 with a very good predicate. Manufacture cluster, tourism and support cluster achieve a good predicate. Empirical evidence shows that corporate governance has a positive and significant influence on Indonesian state-owned enterprises. However, this study is limited to only a sample of Indonesian state-owned enterprises. Further studies should be conducted to understand better the complexity of the multi-attribute nature of the corporate governance model in state-owned enterprises in developing countries. The population set is a unique combination of all non-financial SOEs. Hence, these firms' self-assessment corporate governance practices, as understood from the results of this study, can be benchmarked for all Indonesian SOEs. It is the first paper explaining all indicators of self-assessment corporate governance for Indonesian SOEs.

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