Track: Business Management
Abstract
This paper aims to analyze whether family control and good governance affect firm performance. This model is developed based on the agency view and stewardship perspective. It uses a sample of 71 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for 2017-2019, resulting in 213 observations. The data is analyzed based on panel data regression and moderated regression analysis. Our findings suggest that there is a positive and significant effect of corporate governance on a company's performance. These effects are weaker when firms have a higher level of family control. It might be indicated that the selected directors are not based on competence and only on family relationships which will negatively affect the management's decision.