Structural Principles The structura

Structural Principles The structural principles assume that corporate governance mechanisms matter for the performance of the firm and the achievement of the firm’s goals. These principles dictate the ideal composition of the board of directors (principles 2.1 and 2.2) and separation of roles on the board (principle 2.3), for the existence and structure of board committees (principles 2.4, 4.2, 4.3 and 9.2) and the operation of annual general meetings (encouraging effective participation — principle 6.1, and the use of auditors — principle 6.2). The review in the previous section showed that structure alone does not necessarily lead to better governance although it influences the context of decision making. So the effectiveness of the structural principles will depend on how they influence behaviour. Further, the empirical evidence supporting the structural principles is mixed. The underlying assumption that governance structures matter for firm performance has been dismissed by most financial economists (for example, Bhagat and Black, 1998; Demsetz and Villonga, 2001). The weight of empirical evidence shows that board structure (such as a majority of independent non-executive directors) and/or that separation of board roles (such as between the chair and CEO positions) is unrelated to better average financial performance, other things being equal. There is, however, evidence that the operation of boards improves around important events (such as poor performance, CEO dismissal) and on certain key decisions-making issues (such as CEO remuneration, auditor appointment) when the board has a majority of independent non-executive directors. The number of non-executive directors in Australia are positively associated with the likelihood of CEO dismissal and negatively associated with excess CEO remuneration (Suchard, Singh, and Barr, 2001; Fleming and Stellios, 2002). Thus, we cannot expect to observe better financial outcomes for equity and debt holders as a result of adopting the principles on structure. Behavioural change is also necessary.

Results (Indonesian) 1:

Structural Principles
The structural principles assume that corporate governance mechanisms matter for
the performance of the firm and the achievement of the firm’s goals. These
principles dictate the ideal composition of the board of directors (principles 2.1
and 2.2) and separation of roles on the board (principle 2.3), for the existence and
structure of board committees (principles 2.4, 4.2, 4.3 and 9.2) and the operation
of annual general meetings (encouraging effective participation — principle 6.1,
and the use of auditors — principle 6.2).
The review in the previous section showed that structure alone does not
necessarily lead to better governance although it influences the context of decision
making. So the effectiveness of the structural principles will depend on how they
influence behaviour. Further, the empirical evidence supporting the structural
principles is mixed. The underlying assumption that governance structures matter
for firm performance has been dismissed by most financial economists (for
example, Bhagat and Black, 1998; Demsetz and Villonga, 2001). The weight of
empirical evidence shows that board structure (such as a majority of independent
non-executive directors) and/or that separation of board roles (such as between the
chair and CEO positions) is unrelated to better average financial performance,
other things being equal. There is, however, evidence that the operation of boards
meningkatkan sekitar peristiwa penting (seperti kinerja yang buruk, CEO pemecatan) dan
keputusan pengambilan kunci tertentu masalah (seperti CEO remunerasi, auditor
janji) ketika dewan memiliki mayoritas non-eksekutif independen
direksi. Jumlah direktur non-eksekutif di Australia positif
terkait dengan kemungkinan CEO pemecatan dan terkait negatif dengan
kelebihan CEO remunerasi (Suchard, Singh, dan Barr, 2001; Fleming dan Stellios,
2002). Dengan demikian, kita tidak bisa berharap untuk mengamati hasil keuangan yang lebih baik untuk ekuitas dan
pemegang utang sebagai akibat dari mengadopsi prinsip-prinsip pada struktur. Perilaku
perubahan juga diperlukan.

Results (Indonesian) 2:

Prinsip struktural
Prinsip struktural mengasumsikan bahwa mekanisme tata kelola perusahaan
kinerja firma tersebut dan pencapaian tujuan perusahaan. Ini
menentukan susunan ideal Dewan Direksi (prinsip 2,1 dan
dan 2,2) dan pemisahan peran di papan tulis (prinsip 2,3), untuk keberadaan dan
struktur Dewan Direksi (prinsip 2,4, 4,2, 4,3 dan 9,2) dan operasi
pertemuan umum tahunan (mendorong partisipasi efektif — prinsip 6,1,
dan penggunaan auditor — prinsip 6,2).
Tinjauan di bagian sebelumnya menunjukkan bahwa struktur saja tidak
harus mengarah pada tata kelola yang lebih baik meskipun itu mempengaruhi konteks
Membuat. Jadi, efektivitas prinsip struktural akan tergantung pada bagaimana mereka
mempengaruhi perilaku. Selanjutnya, bukti empiris yang mendukung struktur struktural
prinsip dicampur. Asumsi yang mendasari bahwa struktur tata kelola penting
untuk kinerja perusahaan telah diberhentikan oleh sebagian besar ekonom keuangan (untuk
contoh, Bhagat dan Black, 1998; Demsetz dan Villonga, 2001). Berat
bukti empiris menunjukkan bahwa struktur Dewan (seperti mayoritas independen
Direktur non-Eksekutif) dan/atau pemisahan peran Dewan (seperti antara
kursi dan posisi CEO) tidak terkait dengan kinerja keuangan yang lebih rata,
hal lain yang sama. Namun, ada bukti bahwa pengoperasian papan
meningkatkan sekitar peristiwa penting (seperti kinerja yang buruk, pemecatan CEO) dan
pengambilan keputusan kunci tertentu (seperti remunerasi CEO, auditor dan
pengangkatan) bila Dewan memiliki mayoritas independen non-Eksekutif
Direktur. Jumlah Direktur non-eksekutif di Australia secara positif
terkait dengan kemungkinan pemberhentian CEO dan negatif terkait dengan
kelebihan remunerasi CEO (Suchard, Singh, dan Barr, 2001; Fleming dan Stellios,
2002). dengan demikian, kita tidak dapat mengharapkan untuk mengamati hasil keuangan yang lebih baik
pemegang hutang sebagai akibat dari mengadopsi prinsip pada struktur. Perilaku
perubahan juga diperlukan.