Research Article
The Mechanism of Board of Commissioners and Managerial Ownership on Financial Performance with Mediation of Capital Structure in the Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.16-9-2025.2361136, author={Nasirwan Nasirwan and Azizul Kholis and Muhamad Ridha Habibi Z}, title={The Mechanism of Board of Commissioners and Managerial Ownership on Financial Performance with Mediation of Capital Structure in the Indonesia Stock Exchange }, proceedings={Proceedings of the 7th International Conference on Innovation in Education, Science, and Culture, ICIESC 2025, 16 September 2025, Medan, Indonesia}, publisher={EAI}, proceedings_a={ICIESC}, year={2026}, month={3}, keywords={board of commissioners managerial ownership capital structure financial performance}, doi={10.4108/eai.16-9-2025.2361136} }- Nasirwan Nasirwan
Azizul Kholis
Muhamad Ridha Habibi Z
Year: 2026
The Mechanism of Board of Commissioners and Managerial Ownership on Financial Performance with Mediation of Capital Structure in the Indonesia Stock Exchange
ICIESC
EAI
DOI: 10.4108/eai.16-9-2025.2361136
Abstract
This study analyzes the effect of board of commissioners mechanisms and managerial ownership on financial performance, with capital structure as a mediating variable. Using a quantitative approach, the research examined 18 banking companies listed on the Indonesia Stock Exchange (2022-2024), selected through purposive sampling from 47 companies. Data analysis employed Structural Equation Modeling (SEM) via Smart PLS 3. Results indicate that board of commissioners does not influence financial performance but affects capital structure. Managerial ownership significantly impacts financial performance, though its effect on capital structure remains inconclusive. Capital structure substantially influences financial performance. However, neither board of commissioners nor managerial ownership affect financial performance through capital structure mediation. The findings suggest managerial ownership more effectively enhances financial performance compared to board mechanisms, while capital structure significantly affects performance but lacks mediating function.
