Independent Commissioner Proportion
Proxy: Independent Commissioners (%)
Definition & Description
The ratio of board members not affiliated with management or majority shareholders.
How to Use (Panel Data)
A primary indicator of objective monitoring.
Full Explanation Article
OJK regulations require a minimum of 30% independent commissioners.
A higher proportion is assumed to improve corporate governance.
Related Reference Journals
- [1]Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control.
Research Ideas
The role of independent commissioners in reducing agency costs.
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.