Corporate Governance, Size, and Growth: Do they Drive Financial Performance? Evidence from Indonesia's Consumer Non-cyclical Sector

Abstract

Aims: This study aims to analyze the influence of corporate governance, company size, and company growth on financial performance in the consumer non-cyclicals sector. Study Design: This study uses a quantitative approach with secondary data and multiple linear regression analysis, and the data is tested using StataMP 17. Place and Duration of Study: Consumer non-cyclical companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Methodology: this study uses a quantitative approach, relying on secondary data extracted from published annual reports. This study used purposive sampling technique with a total sample of 183 observations from 41 companies in the consumer non-cyclicals sector listed on the main board of the Indonesia Stock Exchange (IDX) from 2019 to 2023. Results: The results indicate that independent commissioners and the board of directors have a significant positive effect on financial performance. However, the audit committee, company size, and company growth do not significantly affect financial performance. Conclusion: These findings imply that effective and competent independent commissioners and the board of directors can provide objective supervision, enabling them to make strategic decisions that can improve the company's financial performance.