Muhammad Agung Prabowo

Independent Directors and Firm Performance in Family Controlled Firms: Evidence from Indonesia

We analyse the relationship between board structure and firm performance in family-controlled firms using a sample of Indonesian non-financial companies. We find that the share of independent directors on the board has an insignificant relationship with firm performance. We suspect that the result is driven by the lack of institutional reforms in relation to the appointment of independent directors. Our analysis shows strong empirical support for the proposition that family control (family ownership and family involvement on the board) is negatively related to firm performance. However, the significant effect of family ownership disappears when family involvement on the board is taken into the model. This result indicates that family ownership is more detrimental to firm performance whenever the family is highly involved in control decisions. Our results suggest that Indonesia needs to implement governance reforms that prevent majority owners from exercising excessive control over firms.

The importance of synergy and organisation culture to accelerate university in the global environment: a case study

Indonesian universities appearance and recognition in the international environment is left behind some neighbouring countries, for example, Thailand, Malaysia and Singapore. In line with the policy of the Indonesian government to accelerate the international recognition of Indonesian universities, Universitas Sebelas Maret (UNS) which is relatively younger than other public universities in Indonesia, has aggressively progressed to achieve its vision to be a world-class university. Some accelerating strategies have been implemented, more particular with regard to research and innovation, academic quality and international collaboration. To do so, the university put more weight on the strengthening of integrity, ethics, loyalty, commitment and sense of belonging which create synergy between faculty members and administrative staffs. It eventually leads to a more conducive academic environment and organisational culture which is the basis for internationalisation strategy. On the other hand, the university has also released some technical policies and strategies for the internationalisation process.