The Influence Managerial Ownership, Board of Commissioners, Independent Directors and Independent Audit Committee on the Expropriation of Minority Shareholder

Abstract

This study aims to investigate the effect how of managerial ownership, board of commissioners, independent directors and independent audit committees on the expropriation of minority shareholder by majority shareholders in companies listed in Indonesia Stock Exchange. This study is based on the agency theory type II, that is a conflict between majority and minority shareholder. In addition, this phenomena is happening in Indonesia. By using the secondary data and regression analysis, we find that managerial ownership, board size, board of commissioner’s composition do not significantly influence the expropriation of minority shareholders' rights, while audit committee independence significantly effect on expropriation rights of minority shareholders in manufacturing companies listed in Indonesia Stock Exchange.This study do have the practical and theoretical contribution with the sense that to minimise the expropriation of minority shareholder right, company can employ the more audit committee independence.

Keywords        Managerial Ownership, Board of Commissioners, Independent Directors, Independent Audit Committee and the Expropriation of Minority Shareholders