Comparative Analysis of Good Corporate Governance Implementation Based on ASEAN Corporate Governance Scorecard from the Indonesian Banking Industry

Ramsey Ramli, Erna Setiany

Abstract


The phenomenon of Good Corporate Governance (GCG) implementation in Indonesia is still lagging compared to the other countries in the ASEAN region. For the first time, Indonesia only placed 2 (two) issuers from the banking industry as the ASEAN Top 50 publicly listed companies in the event of Awards and Recognition of Top ASEAN Publicly Listed Companies in 2015. This study aims to analyze significant difference of the GGG implementation among the Top 50 and non-Top 50 ranked banks using ASEAN Corporate Governance Scorecard (ACGS) index and its correlation with the human resources (HR) policies. The data analysis of this study uses descriptive and nonparametric comparative analyses with the Mann-Whitney test method. Despite some limitations, the empiric results showed that there are significant differences in the implementation of the GCG among the Top 50 and non-Top 50 ranked banks as proxied by the total score of the ACGS. On the contrary, there are no significant differences in the HR policies as proxied by the ACGS score on the Role of Stakeholders.

DOI: https://doi.org/10.26905/jkdp.v25i1.4779


Keywords


ASEAN Corporate Governance Scorecard; ACGS; Good Corporate Governance; GCG; Human Resources Policy; HR

Full Text:

PDF

References


ASEAN Corporate Governance Experts. (2017). ASEAN Corporate Governance Scorecard Country Reports and Assessments 2015. Published by Asian Development Bank, Manila.

Asian Corporate Governance Association. (2018). CG Watch 2018. Hard decisions. Asia faces tough choices in CG reform. Special report. Published by ACGA and CLSA Limited, Hong Kong SAR.

Hadad, M. (2017). Tata Kelola Perusahaan Indonesia Termasuk Peringkat Bawah di Asia Tenggara. Retrieved from: https://economy.okezone.com. December 15, 2018.

Human Development Report Team. (2019). Human Development Report 2019, Inequalities in Human Development in the 21st Century, Briefing note for countries on the 2019 Human Development Report. Published by United Nations Development Programme, New York.

Indonesian Institute for Corporate Directorship. (2015). IICD, Indonesian Institute for Corporate Directorship, 2015 Annual Report. Published by IICD Office, Jakarta.

Irvan, N., Mus, A.R., Su'un, M., & Sufri, M. (2017). Effect of Human Resource Competencies, Information Technology and Internal Control Systems on Good Governance and Local Government Financial Management Performance. IRA-International Journal of Management & Social Sciences, 8(1), 31-45.

Lukviarman, N., & Johan, A. P. (2018). Meta-analysis of corporate governance in Asia. Investment Management and Financial Innovations, 15(2), 267-280.

Martin, G., & Gollan, P. J. (2012). Corporate Governance and Strategic Human Resources Management In The UK Financial Services Sector: The Case Of The RBS. The International Journal of Human Resource Management, 23(16), 3295–3314.

Nazir, M. (2017). Metode Penelitian. Published by Ghalia Indonesia, Jakarta.

Nurharjanto, T. H., Suhardjanto, D., Lukviarman, N., & Setiany, E. (2018). Corporate Governance, Privatisation, and Financial Performance of Indonesian Stateowned Enterprises. International Journal of Revenue Management, 10(2), 168-188.

OECD. (2015), G20/OECD Principles of Corporate Governance, Published by OECD Publishing, Paris.

Oyewunmi, O. a., Adeyemi, K. s., & Gunnaike, O. o. (2017).

Corporate Governance and Human Resource Management in Nigeria’s Downstream Petroleum Sector. Economics and Business, 64(2). Scientific Annals of Economics and Business, 64(2), 139-153.

Singapore Institute of Directors. (2019), ASEAN Corporate Governance Scorecard, Singapore Companies Briefing 2019. Retrieved from: https://www.sid.org.sg. October 21, 2020.

Sedarmayanti. (2012), Good Governance: Pemerintahan yang Baik & Good Corporate Governance: Tata Kelola Perusahaan yang Baik. Published by Mandar Maju, Bandung.

Setiyawati, H., & Basar, Y. S. (2017). Pengaruh pengungkapan Corporate Social Responsibility dan penerapan Good Corporate Governance terhadap tingkat profitabilitas. Jurnal Akuntansi, 21(3), 351-360.

Shabi, O. R., Bakare, I. A. O., & Edun, A. C. (2014). HR-Corporate Governance Nexus: Implications for the Development of Nigeria’s Banking Sector Services. IOSR Journal of Economics and Finance (IOSR-JEF), 3(4), 68-80.

Sugiyono. (2014). Metode Penelitian Bisnis. Published by Alfabeta, Bandung.

Sujarweni, V. W. 2015. SPSS Untuk Penelitian. Published by Pustaka Baru Press, Yogyakarta.

Sukirno, S. (2017). Pengantar Bisnis. Published by Kencana, Jakarta.

Sulastri, A., Mulyati, S., & Icih. (2018). Analisis Pengaruh ASEAN Corporate Governance Scorecard, Leverage, Size, Growth Opportunities, dan Earnings Pressure Terhadap Konservatisme Akuntansi. Accruals. Accounting Research Journal of Sutaatmadja, 2(1), 41-67.

Sutedi, A. (2012). Good Corporate Governance, Published by Sinar Grafika, Jakarta.

Wahyudin, A., & Solikhah, B. (2017). Corporate governance implementation rating in Indonesia and its effects on financial performance. Corporate Governance: The International Journal of Business in Society, 17(2), 250-265.

Zarkasyi, M. W. (2019), Good Corporate Governance: Pada Badan Usaha Manufaktur, Perbankan dan Jasa Keuangan lainnya. Published by Alfabeta, Bandung.




DOI: https://doi.org/10.26905/jkdp.v25i1.4779

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534
Email: jkp@unmer.ac.id

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0