Universal Journal of Accounting and Finance Vol. 9(5), pp. 982 - 994
DOI: 10.13189/ujaf.2021.090509
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The Impact of Board Directors, Audit Committee and Ownership on Financial Performance and Firms Value

Askar Garad ^1,*, Alni Rahmawati ², Suryo Pratolo ^2
1 Doctoral Management Program, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia
² Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

ABSTRACT

The purpose of this study is to gather and analyze recent research publications on the relationship between governance (board, audit, and ownership) and financial and corporate value. A rigorous literature review of current international articles is used in this paper. The meta-analysis method was utilized to examine papers published in high-evaluation scientific publications indexed in Scopus. The tool (WordStat 8) was utilized to study articles and summarize descriptive statistics, correlation, and keyword cloud during the analysis process. According to the study, the board of directors works to protect investments from misappropriation by actively participating in the development of the company's strategy, giving appropriate incentives to management, and monitoring and evaluating its performance, thus maximizing the company's value. The audit committee can be used as a governance mechanism to improve financial information confidence and openness. Through their participation in the financial statement preparation process as well as improving the independence of both internal and external auditors, the audit committee can help prevent future financial disasters. The study discovered that the emphasis on a company's ownership is critical, and that focusing on the largest shareholder can considerably boost the company's long-term profitability. As a result, it is obvious that the current shifts in ownership focus will diminish performance, but that the negative effects will fade with time and may even have a beneficial impact on the organization's performance. The study will benefit a variety of stakeholders, including investors, stakeholders, company CEOs, board of directors, and other connected groups. Furthermore, guiding shareholders, investors, and stakeholders to make decisions based on reasonable and objective foundations follows a true assessment of the company's market value. This study offers both academics and professionals a written review of the study as well as an updated reference index to measure the relationship between governance and financial success from 2017 to 2020.

KEYWORDS
Board, Audit Committee, Ownership, Financial Performance, Firms Value

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Askar Garad , Alni Rahmawati , Suryo Pratolo , "The Impact of Board Directors, Audit Committee and Ownership on Financial Performance and Firms Value," Universal Journal of Accounting and Finance, Vol. 9, No. 5, pp. 982 - 994, 2021. DOI: 10.13189/ujaf.2021.090509.

(b). APA Format:
Askar Garad , Alni Rahmawati , Suryo Pratolo (2021). The Impact of Board Directors, Audit Committee and Ownership on Financial Performance and Firms Value. Universal Journal of Accounting and Finance, 9(5), 982 - 994. DOI: 10.13189/ujaf.2021.090509.