Analysis of the Board of Commissioners, Board of Directors, and Internal Audit on Competitiveness

Authors

  • Suparlan Suparlan University of Mataram
  • Nandyta Frismaya Putri University of Mataram
  • Ramlah Budiarti University of Mataram
  • Rika Apriana University of Mataram
  • Ulfa Tiana University of Mataram

DOI:

https://doi.org/10.61132/ijema.v1i4.284

Keywords:

Board of Commissioners, Board of Directors, Internal Audit, Company Competitiveness

Abstract

This study aims to examine the influence of the board of commissioners, board of directors, and internal audit on the company's competitiveness. Where, the company's competitiveness in question is ROA, CAR and BOPO. This study used purposive sampling with a sample size of 15 banking companies listed on the Indonesian Stock Exchange in 2021-2023. The results of this study indicate that the Board of Commissioners does not affect the company's competitiveness with ROA, BOPO and CAR indicators. The board of directors does not affect the company's competitiveness with ROA, BOPO, and CAR indicators. Internal Audit does not affect the company's competitiveness with ROA, BOPO, and CAR indicators. However, the Board of Commissioners, Board of Directors, and Internal Audit affect the company's competitiveness together with the BOPO indicator. This indicates that the Board of Commissioners, Board of Directors, and Internal Audit can increase the company's competitiveness together by streamlining its operational costs and operating income.

Downloads

Download data is not yet available.

References

Alzeban, A., & Sawan, N. (2013). The role of internal audit in enhancing corporate governance. Managerial Auditing Journal, 28(6), 539-559

Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43-60.

Asare, T., Johnson, E., & White, C. (2016). Internal audit quality and financial performance. Journal of Financial Control, 34(2), 112-126.

Bai, J., Liu, Y., & Wang, Y. (2021). Stakeholder engagement and bank performance: Evidence from China. Journal of Banking & Finance, 127, 106142.

Ceysa, SD, Putri, JD, Putri, DA, & Siswajanthy, F. (2024). The Role of Banking in the Indonesian Economy. Tambusai Education Journal, 8(2), 25956–25964.

Cohen, A., & Sayag, G. (2010). The effectiveness of internal auditing in enhancing the quality of financial reporting. Journal of Accounting and Finance, 25(4), 543-576.

Cormier, D., Magnan, M., & Van Velthoven, L. (2021). The Role of Board Governance in Corporate Risk Management. Journal of Business Finance & Accounting, 48(1-2), 118-146.

D'Aveni, R. A., & Kesner, I. F. (2021). The Effect of Corporate Governance on Performance: The Moderating Role of CEO Tenure. Journal of Management, 47(4), 926-950.

Fajar, D. (2021). The Influence of Corporate Governance on Financial Performance in the Banking Sector. Journal of Economics and Finance.

Fauzi, H., & Zain, M. (2022). The Effect of BOPO on the Profitability of Banks Listed on the IDX. Journal of Financial Management.

Febrina, V., & Sri, D. (2022). The Influence of the Board of Commissioners, Board of Directors, Audit Committee, and Managerial Ownership on Financial Performance. Journal of Accounting Information, 1, 78–89.

Handayani, R., & Prasetyo, E. (2021). The Effect of the Number of Board of Directors on Operational Cost Efficiency in Islamic Banks in Indonesia.

Hassan, M.K., Ali, M., & Kadir, A. (2020). Bank performance and board governance: Evidence from MENA countries. International Journal of Financial Studies, 8(1), 2.

Indarti, I., Aljufri, A., & Apriliyani, IB (2023). The role of audit quality as a moderator of the influence of the board of commissioners, audit committee and company size on the financial performance of the study company at General Banks on the IDX for the period 2016-2020. Competitive Accounting Journal, 6(1), 11–20.

Intia, LC, & Azizah, SN (2021). The Influence of the Board of Directors, Independent Board of Commissioners, and Sharia Supervisory Board on the Financial Performance of Islamic Banking. JRKA, 7(2), 46–59.

Khan, MM, et al. (2019). Impact of board characteristics on bank financial performance: Evidence from Pakistan. Journal of Business Research, 97, 156-166.

Kurniawan, AR, & Mahardika, DPK (2021). THE EFFECT OF GOOD CORPORATE GOVERNANCE (GCG) ON BANKING EFFICIENCY IN INDONESIA IN THE PERIOD 2015-2019. E-Proceeding of Management, 8(6), 8249–8259. www.detik.com

Lumbanharja, T. (2021). The Influence of Good Corporate Governance (Board of Directors, Board of Commissioners and Audit Committee on Profitability. Jurakunman, 14(2), 159–180.

Mashuri, M., & Nurjannah, D. (2020). SWOT ANALYSIS AS A STRATEGY TO IMPROVE COMPETITIVENESS (Study at PT. Bank Riau Kepri Pekanbaru Sharia Business Unit). Journal of Sharia Banking, 1(1), 97–112.https://ejournal.stiesyariahbengkalis.ac.id/index.php/jps

McKinsey & Company. (2020). The Future of Corporate Governance: The Role of the Board in Managing Risk.

Mihret, D. G., & Yismaw, A. W. (2007). Internal audit effectiveness: An Ethiopian public sector case study. Managerial Auditing Journal, 22(5), 470-484.

Mutianingsih, V., Usman, B., & Hartini, H. (2024). The Influence of Social Responsibility, Institutional Ownership, Board of Commissioners Size, Dividend Policy, Company Size and Leverage on Financial Performance. JAIM: Manado Accounting Journal, 5(5), 398–414.

Pratama, G., & Yudhistira, I. (2021). Board of Directors and Financial Performance: An Empirical Study on Banks in Indonesia. Journal of Accounting and Finance.

Puspita, ND, & Sukarmanto, E. (2024). The Effect of Independence, Female Gender, and Board of Commissioners Size on Financial Performance. Bandung Conference Series: Accountancy, 4(1).https://doi.org/10.29313/bcsa.v4i1.11871

Rachman, A. (2023). Supervision of the Board of Directors and its Impact on Bank Efficiency. Journal of Banking and Finance.

Saputra, A., & Hidayat, R. (2022). The effect of the number of board of directors on financial risk management and capital stability in banking companies in Indonesia.

Saputra, I., & Hidayat, M. (2022). Capital Adequacy Ratio and Bank Competitiveness in Indonesia. Journal of Business Economics.

Sari, D., & Utami, R. (2022). Risk Management by the Board of Directors and Its Implications for Bank Competitiveness. Journal of Risk Management.

Simatupang, HB (2019). THE ROLE OF BANKING IN IMPROVING THE INDONESIAN ECONOMY. Journal of Multiparadigma Accounting Research (JRAM), 6(2), 136–146.

Susanto, R., & Widjaja, K. (2023). Analysis of Banking Competitiveness Based on Financial Performance. Journal of Economics and Business.

Syafaat, F. (2021). The Effect of CAR, ROA, BOPO, and NIM on Profit Growth in State-Owned Banks. Accounting and Management, 16(1), 37–53.https://akuntansi.pnp.ac.id/jam

Wulandari, E., & Lestari, M. (2021). The Effect of ROA on Bank Competitiveness. Journal of Financial Economics and Banking.

Zulkifli, N., Ghani, E.K., & Said, J. (2020). Internal audit effectiveness and capital adequacy ratio: A study of Malaysian banks. Journal of Banking Regulation, 21(3), 243-258.

Downloads

Published

2024-10-21

How to Cite

Suparlan Suparlan, Nandyta Frismaya Putri, Ramlah Budiarti, Rika Apriana, & Ulfa Tiana. (2024). Analysis of the Board of Commissioners, Board of Directors, and Internal Audit on Competitiveness . International Journal of Economics, Management and Accounting, 1(4), 357–376. https://doi.org/10.61132/ijema.v1i4.284