The Effect of Governance Mechanisms and Environmental Disclosure on Financial Performance with Firm Size Moderation

Adhevia Perdana Putri; St. Dwiarso Utomo; Imang Dapit Pamungkas; Enny Susilowati Mardjono

doi:10.70716/emis.v4i3.645

Authors

Adhevia Perdana Putri Department of Accounting, Universitas Dian Nuswantoro, Indonesia Author https://orcid.org/0009-0006-2672-800X
St. Dwiarso Utomo Department of Accounting, Universitas Dian Nuswantoro, Indonesia Author https://orcid.org/0000-0001-8062-3715
Imang Dapit Pamungkas Department of Accounting, Universitas Dian Nuswantoro, Indonesia Author https://orcid.org/0000-0002-7218-7295
Enny Susilowati Mardjono Department of Accounting, Universitas Dian Nuswantoro, Indonesia Author https://orcid.org/0000-0002-5308-7280

DOI:

https://doi.org/10.70716/emis.v4i3.645

Keywords:

managerial ownership, corporate governance, financial performance, environmental disclosure, firm size

Abstract

This study investigates how managerial ownership, independent commissioners, board meeting frequency, board diversity, and environmental disclosure influence financial performance, with firm size acting as a moderating variable. The research is driven by discrepancies in previous studies on corporate governance and financial outcomes. The population includes state-owned banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2024. Using purposive sampling, 30 observations from 5 banks were analyzed. Moderated Regression Analysis (MRA) was used to test the hypotheses. The findings indicate that managerial ownership and board meeting frequency have significant negative effects on financial performance, whereas independent commissioners, board diversity, and environmental disclosure have no significant effects. Only the relationship between board meeting frequency and financial performance is moderated by firm size, which weakens its negative effect. These results contribute to agency and contingency theories by showing that governance mechanisms do not always positively influence performance, and firm size has a limited moderating effect in state-owned banks.

Author Biographies

Adhevia Perdana Putri, Department of Accounting, Universitas Dian Nuswantoro, Indonesia

Adhevia Perdana Putri is a Master's student in the Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro, Semarang, Indonesia. She holds a Bachelor's degree in Accounting from the same university. Her research interests include corporate governance, financial performance, sustainability reporting, and public sector accounting. She is an active researcher and has presented papers at various national and international conferences.
St. Dwiarso Utomo, Department of Accounting, Universitas Dian Nuswantoro, Indonesia

Prof. Dr. St. Dwiarso Utomo, S.E., M.Kom., Akt., CA
Prof. Dr. St. Dwiarso Utomo is a Professor in the Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro, Semarang, Indonesia. He holds a Doctorate degree in Accounting, a Master's degree in Computer Science, and is a certified public accountant (CA). His research expertise spans financial accounting, auditing, accounting information systems, and corporate governance. He has published extensively in both national and international journals and serves as a reviewer for several accredited journals.
Imang Dapit Pamungkas, Department of Accounting, Universitas Dian Nuswantoro, Indonesia

Dr. Imang Dapit Pamungkas is a Senior Lecturer in the Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro, Semarang, Indonesia. He earned his Doctorate and Master's degrees in Accounting and holds professional certifications as a Certified Accountant (CA) and Certified Internal Business Auditor (CIBA). His research interests include financial accounting, auditing, public sector accounting, and corporate governance. He has published numerous articles in reputable national and international journals and is actively involved in academic research and community service.
Enny Susilowati Mardjono, Department of Accounting, Universitas Dian Nuswantoro, Indonesia

Enny Susilowati Mardjono is a Senior Lecturer in the Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro, Semarang, Indonesia. She holds a Ph.D. in Accounting, a Master's degree in Accounting, and is a certified public accountant (CA), Certified Financial Management Accountant (CFMA), and ASEAN Chartered Professional Accountant (ACPA). Her research areas include financial accounting, management accounting, corporate finance, and sustainability reporting. She has extensive experience in both academic research and professional practice, and has published widely in various accredited journals.

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