Authors
- Anandhayu Mahatma Ratri
- Siti Deviatul Huzaifah
- Agung Suwandaru
- Wahyu Wiyani
- Ginanjar Indra Kusuma Nugraha
Affiliation
Department of Business Administration, Faculty of Social and Political Science, University of Merdeka Malang, Malang, Indonesia.
Publication Information
| Item | Details |
|---|---|
| Publication Type | Conference Proceeding |
| Conference | 1st International Conference on Digital Innovations in Education and Social Sciences (InnovatED2025) |
| Date | 8–9 July 2025 |
| Venue | UCMI, Kuala Lumpur |
| License | CC BY 4.0 |
Abstract
Corporate governance mechanisms exhibit complex variations that traditional analytical methods often fail to capture comprehensively. This study introduces an innovative Panel Principal Component Analysis (PCA) approach to systematically decompose governance structures into between-firm and within-firm components using a balanced panel dataset of Indonesian public companies. The findings reveal that effective corporate governance requires balancing stable firm-specific governance characteristics with dynamic governance adjustments over time. The proposed framework offers valuable insights for policymakers and corporate boards in developing more adaptive governance practices.
Keywords
- Corporate Governance
- Board Structure
- Ownership Structure
- Panel Data Analysis
- Principal Component Analysis (PCA)
Research Highlights
- Introduces a Panel Principal Component Analysis (PCA) framework.
- Distinguishes between stable governance characteristics and dynamic governance adjustments.
- Reveals two governance dimensions: board–managerial alignment and the trade-off between institutional ownership and audit committee independence.
- Provides practical implications for policymakers, regulators, and corporate boards.
Full Paper
📄 Download Full Paper (PDF)
The Duality of Corporate Governance Independence vs. managerial Control Revealed by Principal Components
Citation
Ratri, A. M., Huzaifah, S. D., Suwandaru, A., Wiyani, W., & Nugraha, G. I. K. (2025). The Duality of Corporate Governance: Independence vs. Managerial Control Revealed by Principal Components. Proceedings of the 1st International Conference on Digital Innovations in Education and Social Sciences (InnovatED2025), UCMI, Kuala Lumpur.
