The Influence of Corporate Governance on Investment Efficiency: The Role of Board Members, Audit Quality, and Institutional Ownership in Indonesia

Authors

DOI:

https://doi.org/10.31000/bvaj.v9i2.15148

Abstract

This study explores how board characteristics impact investment efficiency among firms listed on the Indonesia Stock Exchange from 2019 to 2023. Using panel data regression with the Fixed Effect Model, the results show that board size and board independence positively affect investment efficiency, while board meeting frequency has a negative impact. Board gender diversity and audit quality do not significantly influence investment efficiency. Institutional ownership strengthens the link between board meeting frequency and investment efficiency but does not significantly moderate other connections. These findings emphasize the significance of board characteristics in boosting investment efficiency and offer valuable insights for improving corporate governance in Indonesia.

 

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2025-12-09

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