PENGARUH KARAKTERISTIK DIREKSI TERHADAP KUALITAS PENGENDALIAN INTERNAL (Studi Empiris pada perusahaan BUMN yang terdaftar di BEI periode 2009-2013)

Abstract

The important of internal control quality has been discussed by practioners and academics. One of the factors affecting the internal quality control is director’s entrenchment where according to the agency theory, this aspect of director will reduce the quality of internal control. However, the study that investigate the relationship between director’s entrenchment and internal control quality still limited, especially using the Indonesia’s companies. The significant different between Indonesia environment and other previous studies is corporate governance system, especially dismissed and appointed the directors. Indonesia apply the modified continental europe board system. Therefore, this condition will make director’s entrenchment higher and finally it will weaken the internal control. This study  aims to investigate empirically the effect of director’s entrenchment on the quality of internal control by using the governement-link companies listed in Indonesia Stock Exchange. This study also examine  the board director characteristics, such as  director’s ownership, director’s tenure, director’s incentive, director’s gender, and director’s age. The Sample of this research were 17 companies that listed in Indonesia Stock Exchange from 2009-2013. The data used  in this research was secondary data that selected  by using purposive sampling method. Technique of data analysis for examining the hypothesis was logistic model.The Result of research indicate that director’s entrenchment do not have a significant effeect on the internal control quality. The only variabel that have a significant relationshi with the internal control quality is director’s age..

Keyword:        Internal control quality, director’s entrechment, director’s ownership, director’s tenure, director’s insentive, director’s gender, and director’s age.