{"id":868,"date":"2026-07-01T08:24:19","date_gmt":"2026-07-01T08:24:19","guid":{"rendered":"https:\/\/faculty.unimaiwp.edu.my\/foe\/?page_id=868"},"modified":"2026-07-01T08:43:35","modified_gmt":"2026-07-01T08:43:35","slug":"the-duality-of-corporate-governance-independence-vs-managerial-control-revealed-by-principal-components","status":"publish","type":"page","link":"https:\/\/faculty.unimaiwp.edu.my\/foe\/research\/innovated-2025\/the-duality-of-corporate-governance-independence-vs-managerial-control-revealed-by-principal-components\/","title":{"rendered":"The Duality of Corporate Governance: Independence vs. Managerial Control Revealed by Principal Components"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"868\" class=\"elementor elementor-868\">\n\t\t\t\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-2b88ab60 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2b88ab60\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-custom\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-2872e122\" data-id=\"2872e122\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-633421b0 elementor-widget elementor-widget-text-editor\" data-id=\"633421b0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 18-06-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"783\" data-end=\"793\">Authors<\/h2><ol><li data-start=\"795\" data-end=\"818\">Anandhayu Mahatma Ratri<\/li><li data-start=\"795\" data-end=\"818\">Siti Deviatul Huzaifah<\/li><li data-start=\"795\" data-end=\"818\">Agung Suwandaru<\/li><li data-start=\"795\" data-end=\"818\">Wahyu Wiyani<\/li><li data-start=\"795\" data-end=\"818\">Ginanjar Indra Kusuma Nugraha<\/li><\/ol><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"911\" data-end=\"925\">Affiliation<\/h2><p data-start=\"927\" data-end=\"1055\">Department of Business Administration, Faculty of Social and Political Science, University of Merdeka Malang, Malang, Indonesia.<\/p><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"1062\" data-end=\"1088\">Publication Information<\/h2><div class=\"TyagGW_tableContainer\"><div class=\"group TyagGW_tableWrapper flex flex-col-reverse w-fit\" tabindex=\"-1\"><table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"1090\" data-end=\"1370\"><thead data-start=\"1090\" data-end=\"1108\"><tr data-start=\"1090\" data-end=\"1108\"><th class=\"last:pe-10\" data-start=\"1090\" data-end=\"1097\" data-col-size=\"sm\">Item<\/th><th class=\"last:pe-10\" data-start=\"1097\" data-end=\"1108\" data-col-size=\"md\">Details<\/th><\/tr><\/thead><tbody data-start=\"1128\" data-end=\"1370\"><tr data-start=\"1128\" data-end=\"1172\"><td data-start=\"1128\" data-end=\"1147\" data-col-size=\"sm\">Publication Type<\/td><td data-start=\"1147\" data-end=\"1172\" data-col-size=\"md\">Conference Proceeding<\/td><\/tr><tr data-start=\"1173\" data-end=\"1290\"><td data-start=\"1173\" data-end=\"1186\" data-col-size=\"sm\">Conference<\/td><td data-start=\"1186\" data-end=\"1290\" data-col-size=\"md\">1st International Conference on Digital Innovations in Education and Social Sciences (InnovatED2025)<\/td><\/tr><tr data-start=\"1291\" data-end=\"1315\"><td data-start=\"1291\" data-end=\"1298\" data-col-size=\"sm\">Date<\/td><td data-start=\"1298\" data-end=\"1315\" data-col-size=\"md\">8\u20139 July 2025<\/td><\/tr><tr data-start=\"1316\" data-end=\"1346\"><td data-start=\"1316\" data-end=\"1324\" data-col-size=\"sm\">Venue<\/td><td data-col-size=\"md\" data-start=\"1324\" data-end=\"1346\">UCMI, Kuala Lumpur<\/td><\/tr><tr data-start=\"1347\" data-end=\"1370\"><td data-start=\"1347\" data-end=\"1357\" data-col-size=\"sm\">License<\/td><td data-start=\"1357\" data-end=\"1370\" data-col-size=\"md\">CC BY 4.0<\/td><\/tr><\/tbody><\/table><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"1377\" data-end=\"1388\">Abstract<\/h2><p data-start=\"1390\" data-end=\"2111\">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.<\/p><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"2118\" data-end=\"2129\">Keywords<\/h2><ul data-start=\"2131\" data-end=\"2252\"><li data-start=\"2131\" data-end=\"2153\">Corporate Governance<\/li><li data-start=\"2154\" data-end=\"2171\">Board Structure<\/li><li data-start=\"2172\" data-end=\"2193\">Ownership Structure<\/li><li data-start=\"2194\" data-end=\"2215\">Panel Data Analysis<\/li><li data-start=\"2216\" data-end=\"2252\">Principal Component Analysis (PCA)<\/li><\/ul><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"2259\" data-end=\"2281\">Research Highlights<\/h2><ul data-start=\"2283\" data-end=\"2715\"><li data-start=\"2283\" data-end=\"2349\">Introduces a Panel Principal Component Analysis (PCA) framework.<\/li><li data-start=\"2350\" data-end=\"2443\">Distinguishes between stable governance characteristics and dynamic governance adjustments.<\/li><li data-start=\"2444\" data-end=\"2591\">Reveals two governance dimensions: board\u2013managerial alignment and the trade-off between institutional ownership and audit committee independence.<\/li><li data-start=\"2592\" data-end=\"2715\">Provides practical implications for policymakers, regulators, and corporate boards.<\/li><\/ul><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"2722\" data-end=\"2735\">Full Paper<\/h2><p>\ud83d\udcc4 <strong data-start=\"2740\" data-end=\"2769\">Download Full Paper (PDF)<\/strong><br \/><a href=\"http:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/The-Duality-of-Corporate-Governance-Independence-vs.-managerial-Control-Revealed-by-Principal-Components-6.pdf\">The Duality of Corporate Governance Independence vs. managerial Control Revealed by Principal Components<\/a><\/p><h2 class=\"PDq2pG_selectionAnchorContainer\" data-start=\"2776\" data-end=\"2787\">Citation<\/h2><p data-start=\"2789\" data-end=\"3162\">Ratri, A. M., Huzaifah, S. D., Suwandaru, A., Wiyani, W., &amp; Nugraha, G. I. K. (2025). <em data-start=\"2875\" data-end=\"2982\">The Duality of Corporate Governance: Independence vs. Managerial Control Revealed by Principal Components<\/em>. Proceedings of the 1st International Conference on Digital Innovations in Education and Social Sciences (InnovatED2025), UCMI, Kuala Lumpur.<\/p><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-5984c93\" data-id=\"5984c93\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2fe31bc elementor-widget elementor-widget-image\" data-id=\"2fe31bc\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 18-06-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"683\" height=\"1024\" src=\"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/ChatGPT-Image-Jul-1-2026-11_40_18-AM-3-683x1024.png\" class=\"attachment-large size-large wp-image-878\" alt=\"\" srcset=\"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/ChatGPT-Image-Jul-1-2026-11_40_18-AM-3-683x1024.png 683w, https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/ChatGPT-Image-Jul-1-2026-11_40_18-AM-3-200x300.png 200w, https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/ChatGPT-Image-Jul-1-2026-11_40_18-AM-3-768x1152.png 768w, https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-content\/uploads\/sites\/7\/2026\/07\/ChatGPT-Image-Jul-1-2026-11_40_18-AM-3.png 1024w\" sizes=\"auto, (max-width: 683px) 100vw, 683px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>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\u20139 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":864,"parent":849,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-868","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/pages\/868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/comments?post=868"}],"version-history":[{"count":15,"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/pages\/868\/revisions"}],"predecessor-version":[{"id":902,"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/pages\/868\/revisions\/902"}],"up":[{"embeddable":true,"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/pages\/849"}],"wp:attachment":[{"href":"https:\/\/faculty.unimaiwp.edu.my\/foe\/wp-json\/wp\/v2\/media?parent=868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}