Effectiveness of the Board of Commissioners Role: Review of Resources Dependence Theory

DOI

10.2991/icame-18.2019.31How to use a DOI?

Keywords

Social Capital, Advising Role, Corporate Performance

Abstract

Abstract: One of the roles of the board of directors is to provide advice on policies and strategies to management. This advice requires intellectual ability inherent in the board of commissioners, one of them is social capital. The study aims to determine the effect of social capital on the role of giving advice and counseling, as well as its impact on company performance. The population used is companies listed on the Indonesia Stock Exchange for the period 2008-2015. Based on purposive sampling, 150 observations are obtained. The hypothesis is tested using path analysis. This study provides evidence that social capital influences the role of advising, the role of advising influences the company performance; social capital does not directly affect the company's performance; and the role of advising mediates the influence of social capital on company performance. The results of this study indicate that the role of advising is needed in improving the company.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Makaryanawati
AU  - Sriyani Mentari
AU  - Fatmawati Zahroh
AU  - Ria Zulkha Ermayda
PY  - 2019/08
DA  - 2019/08
TI  - Effectiveness of the Board of Commissioners Role: Review of Resources Dependence Theory
BT  - Proceedings of the 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018)
PB  - Atlantis Press
SP  - 276
EP  - 285
SN  - 2352-5428
UR  - https://doi.org/10.2991/icame-18.2019.31
DO  - 10.2991/icame-18.2019.31
ID  - 2019/08
ER  -