Implementation of Good Corporate Governance and Financial Performance: Lessons from Telecommunication and Technology Sector in South East Asia

Didi Achjari, Sri Suryaningsum, Ratna Candra Sari


Implementation of Good Corporate Governance (GCG) has been interesting topics in Indonesia as well as in many other countries. The current study aims to investigate GCG implementation especially in communication and technology companies in ASEAN countries. GCG implementation is measured using some surrogates such as corporate action, GCG elements in organization structure, public ownership, audited financial report, and return of total assets. Samples used in this study are technology and telecommunication companies from six ASEAN countries. Data obtained from OSIRIS database from year 2005 to 2007 is examined using regression analysis. The study finds factors influencing net profit vary across the countries. In Indonesia, public ownership and corporate action affect net profit. In Malaysia, the influencing factors are corporate action, public ownership independence, quality of audited financial report, and return of total assets. Meanwhile, in Singapore the significant factors are corporate action, public ownership independence, and return of total assets. Further, Thailand's results show that all variables are significant. However, Philippine's results suggest that not all variables are significant. Lastly, in Vietnam, corporate actions, the number of GCG members and return of total assets influence the net profit.


Good Corporate Governance (GCG); ASEAN; corporate action; completeness of GCG organisation structure; public independency indicator; telecommunication and technology company.



  • There are currently no refbacks.


The Indonesian Journal of Accounting Research (IJAR)

Editorial Secretariat

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

Jl. Nusantara, Bulaksumur Yogyakarta 55281
CP : Novita
Phone  : +62 812-2848-2829
Fax    : +62 274 524606
Email  :

Marketing and Sales Office

Ikatan Akuntan Indonesia
Graha Akuntan, Jl. Sindanglaya No.1 Menteng, Jakarta Pusat 10310
CP : Reza Fauzi
Divisi Pelayanan, Keanggotaan dan Mitra IAI.
Grha Akuntan, Jl. Sindanglaya No.1, Menteng.
Telp.021-31904232 Ext.324/321



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.