Corporate Governance and its Impact in Company's Stock Price: Case Study

  • BAHTIAR PRABOWO University Yos Soedarso, Indonesia
  • ENY ROCHMATULAILI University Yos Soedarso, Indonesia
  • RUSDIYANTO RUSDIYANTO University of Airlangga, Indonesia University of Gresik, Indonesia
  • ENY SULISTYOWATI University Yos Soedarso, Indonesia




This study aims to evaluate the application of good corporate governance to the stock prices of Indonesian manufacturing companies. It is used a descriptive method with a quantitative approach. The population in this study is the manufacturing companies in Indonesia from 2016 to 2018. The research data uses secondary information, and financial statements of the companies. The results of the study indicate that the Independent Commissioner and Managerial Ownership have an impact on stock prices, while the Institutional Ownership does not have an impact.




Este estudio tiene como objetivo evaluar la aplicación de la  buena gobernabilidad corporativa a los precios de las acciones de las empresas manufactureras indonesias. Se utiliza un método descriptivo con un enfoque cuantitativo. La población en este estudio está compuesta por las empresas manufactureras indonesas de 2016 a 2018. Los datos de la investigación utilizan información secundaria, tales como los estados financieros de dichas empresas. Los resultados del estudio indican que el Comisionado Independiente y la Propiedad Administrativa tienen un impacto en los precios de las acciones, mientras que la Propiedad Institucional no tiene impacto.



AKBAŞ, HE & CANIKLI, S (2019). "Determinants of voluntary greenhouse gas emission disclosure: An empirical investigation on Turkish firms." Sustainability (Switzerland), 11(1).

CATER, J, JAMES, K, KIDWELL, R, CAMP, K & YOUNG, M (2019). "HRM practices and effectiveness: a comparison of US Hispanic and non-Hispanic family firms." Journal of Small Business and Enterprise Development, 26(5), pp.726–746.

CHING, HY (2020). "Responsible Investment and the Disclosure of ESG Information in the Companies’ Integrated Reports." World Sustainability Series, pp.449–463.

CHRISMAN, JJ (2019). "Stewardship Theory: Realism, Relevance, and Family Firm Governance." Entrepreneurship: Theory and Practice, 43(6), pp.1051–1066.

CRISÓSTOMO, VL, BRANDÃO, IDF & LÓPEZ-ITURRIAGA, FJ (2020). Large shareholders’ power and the quality of corporate governance: An analysis of Brazilian firms. Research in International Business and Finance.

ESQUEDA, OA & O’CONNOR, T (2020). Corporate governance and life cycles in emerging markets. Research in International Business and Finance.

FARIDA, AL, ROZIQ, A & WARDAYATI, SM (2019). "Determinant variables of enterprise risk management (ERM), audit opinions and company value on insurance emitents listed in Indonesia stock exchange." International Journal of Scientific and Technology Research, 8(7), pp.288–293.

GAZALI KUSUMA, A, AINA, M, BUSTARAM, I, AMAR, SS, RUSDIYANTO & PANJILAKSANA, SDD (2020). "The Effect of Financial Performance on Stock Prices: a Case Study of Indonesian." Talent Development and Excellence, 12(1), pp.4007-4016.

GAZALI KUSUMA, A, AINA, M, BUSTARAM, I, RISAL, Z, PURWANTO & TJARAKA, H (2020). "Work Ethics of Madura Communities in Salt Business : A Case Study Indonesian." Talent Development and Excellence, 12(1), pp.3537–3549.

GREENE, D, INTINTOLI, VJ & KAHLE, KM (2020). "Do board gender quotas affect firm value? Evidence from California Senate." Journal of Corporate Finance.

HAPSORO, D & HUSAIN, ZF (2019). "Does sustainability report moderate the effect of financial performance on investor reaction? Evidence of Indonesian listed firms." International Journal of Business, 24(3), pp.308-328.

HARIS, M, YAO, H, TARIQ, G, JAVAID, HM & UL AIN, Q (2019). "Corporate governance, political connections, and bank performance." International Journal of Financial Studies, 7(4).

HERMAWAN, A & GUNARDI, A (2019). "Motivation for disclosure of corporate social responsibility: Evidence from banking industry in Indonesia." Entrepreneurship and Sustainability Issues, 6(3), pp.1297–1306.

HILLIARD, J, JAHERA, JS & ZHANG, H (2019). "The Us financial crisis and corporate dividend reactions: for better or for worse?" Review of Quantitative Finance and Accounting, 53(4), pp.1165–1193.

JEBRAN, K, CHEN, S & ZHANG, R (2020). "Board diversity and stock price crash risk." Research in International Business and Finance.

JENSEN, MC & MECKLING WH (1976). "Theory of The Firm: Managerial Behavior, Agency Cost And Ownership Structure." Journal of Financial Economics, 3(8), pp.305–360.

JUANAMASTA, IG, WATI, NMN, HENDRAWATI, E, WAHYUNI, W, PRAMUDIANTI, M, WISNUJATI, NS & UMANAILO, MCB (2019). "The role of customer service through customer relationship management (Crm) to increase customer loyalty and good image." International Journal of Scientific and Technology Research, 8(10), pp.2004–2007.

LE, TN, MAI, VA & NGUYEN, VC (2020). "Determinants of profitability: Evidence from construction companies listed on Vietnam Securities Market." Management Science Letters, 10(3), pp.523–530.

MELGAREJO, M (2019). "The impact of corporate governance on earnings quality: evidence from Peru." Journal of Accounting in Emerging Economies, 9(4), pp.527–541.

NASIH, M, HARYMAWAN, I, PARAMITASARI, YI & HANDAYANI, A (2019). "Carbon emissions, firm size, and corporate governance structure: Evidence from the mining and agricultural industries in Indonesia." Sustainability (Switzerland), 11(9).

PACHECO, L (2019). "Performance vs. Family ownership and management: The case of portuguese wine firms." Entrepreneurial Business and Economics Review, 7(3), pp.7–24.

RAMÍREZ MOLINA, R., MARCANO, M., RAMÍREZ MOLINA, R., LAY RABY, N & HERRERA TAPIAS, B (2019). “Relationship Between social intelligence and resonant leadership in public health Institutions”. Opción. Revista de Ciencias Humanas y Sociales, 35(90), pp.2477-9385.

RUSDIYANTO & NARSA, IM (2019). "The Effects of Earnings Volatility, Net Income and Comprehensive Income on Stock Prices on Banking Companies on the Indonesia Stock Exchange." Internasiotional Review of Manahement and Marketning, 9(6), pp.18–24.

RUSDIYANTO & NARSA, IM (2020). "The Effect of Company Size , Leverage and Return on Asset on Earnings Management : Case Study Indonesian." Espacios, 41(17), pp.25.

RUSDIYANTO, AGUSTIA, D, SOETEDJO, S & SEPTIARINI, DF (2020). "The effect of cash turnover and receivable turnover on profitability." Opcion, 36(26), pp.1417–1432.

RUSDIYANTO, AGUSTIA, D, SOETEDJO, S, NARSA, IM & SEPTIARINI, DF (2020). "Determinants of Audit Delay in Indonesian Companies: Empirical Evidence." Espacios, 41(3), pp.46–55.

RUSDIYANTO, HIDAYAT, W, SOETEDJO, S, TJARAKA, H, SEPTIARINI, DF, GAZALI & RAHAYU, DI (2020). "The Effect of Macroeconomics on Stock Prices : Case Study Indonesian." Espacios, 14(17), pp.26.

RUSDIYANTO, HIDAYAT, W, TJARAKA, H, SEPTIARINI, DF, FAYANNI, Y, UTARI W & IMANAWATI, Z (2020). "The Effect of Earnig Per Share, Debt to Equity Ratio and Return on Assets on Stock Prices: Case Study Indonesia." Academy of Entrepreneurship Journal, 26(2), pp.1–10.

RUSDIYANTO, SAWARJUWONO, T & TJARAKA, H (2020). "Interpret The Shari ’ ah Accounting Practice In Indonesian." Talent Development and Excellence, 12(3), pp.2420–2433.

RUSDIYANTO, TJARAKA, H, MUFAROKHAH, N, AL’ASLAINI, MZ, MUSTHOFA, AJ, AJI, S & ROHMAH, A (2019). "Corporate Social Responsibility Practices in Islamic Studies in Indonesian." Talent Development and Excellence, 12(1), pp.121–139.

SALEM, IH, AYADI, SD & HUSSAINEY, K (2019). "Corporate governance and risk disclosure quality: Tunisian evidence." Journal of Accounting in Emerging Economies, 9(4), pp.567–602


SETIAWAN, D, TAIB, FM, PHUA, LK & CHEE, HK (2019). "IFRS and earnings management in Indonesia: The effect of independent commissioners." International Journal of Business and Society, 20(1), pp.37–59.

SHARMA, P, CHENG, LTW & LEUNG, TY (2020). "Impact of political connections on Chinese export firms’ performance – Lessons for other emerging markets." Journal of Business Research, 106(4), pp.24–34.

TILL, RE & YOUNT, MB (2019). "Governance and Incentives: Is It Really All about the Money?" Journal of Business Ethics, 159(3), pp.605–618.

VILLALOBOS ANTÚNEZ, J & RAMÍREZ MOLINA, R (2018). “El derecho a la autobiografía: dimensión ius-filosófica desde la perspectiva de H. Arendt y P. Ricoeur”. Opción. Revista de Ciencias Humanas y Sociales, 34(18), pp. 1012-1587.

VO, XV (2019). "Residual government ownership and corporate investment efficiency in privatised firms: evidence from a transition country." Asian-Pacific Economic Literature, 33(2), pp.121–127.

ZHOU, C (2019). "Effects of corporate governance on the decision to voluntarily disclose corporate social responsibility reports: evidence from China." Applied Economics, 51(55), pp.5900–5910.

Cómo citar
PRABOWO, B., ROCHMATULAILI, E., RUSDIYANTO, R., & SULISTYOWATI, E. (2020). Corporate Governance and its Impact in Company’s Stock Price: Case Study. Utopía Y Praxis Latinoamericana, 25(1), 187-196. Recuperado a partir de