Family Voting Rights, Board Characteristics, and Shareholder Value: Evidence from Indonesia

Saiful Saiful


This study examines the relationship between board of director characteristics and shareholder value. This study also investigates the moderating role of family voting rights on the relationship between proportion of independent members on board and shareholder value. Based on 88 samples of Indonesian listed companies for the period 2002 to 2005 (352 observations) and using random effect panel data analysis, the results showed that the proportion of independent members on board is positively and significantly associated with shareholder value. It means that the role of an independent board director in advising and monitoring management to act in the best interest of shareholders is effective whether in a developed or in developing market including Indonesia. Further, this study also found that a lower proportion of family voting rights leads to the strengthening of the positive relationship between independent board and shareholder value.


board characteristics; corporate governance; shareholder value; family voting rights



  • There are currently no refbacks.


The Indonesian Journal of Accounting Research (IJAR)

Sekretariat :

Editorial Secretariat

Master of Science and Doctoral Programs
Faculty of Economics and Business, Gadjah Mada University

Jl. Nusantara, Bulaksumur Yogyakarta 55281
Phone  : +62 85227764898
Fax    : +62 274 524606
Email  :

Marketing and Sales Office

Ikatan Akuntan Indonesia
Graha Akuntan, Jl. Sindanglaya No.1 Menteng, Jakarta Pusat 10310


ISSN 2086-6887 (Print)
ISSN 2655 - 1748 (online)


Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.