Board Knowledge of Corporate Governance Principles

DOI: 10.5176/978-981-08-8408-6_BizStrategy2011_16

Authors: Taufiqurrahman

Abstract:

Financial crisis and business scandals have been encouraging the importance of good corporate governance implementation in managing organizations. As a key element in improving economic efficiency, growth, and enhancing investor confidence, corporate governance involves board of directors, shareholders, and other stakeholders that have to deal with the issues of transparency, accountability, responsibility, independence, and fairness. Board of directors plays an important role in supporting implementation of corporate governance principles. Considering the importance of good corporate governance
implementation in private sectors as well as state-owned enterprises, this research has an objective to investigate whether board of directors at state-owned enterprises in Indonesia have sufficient knowledge of corporate governance principles thus they can support the implementation of corporate governance principles.

Keywords: board knowledge, corporate governance, state-owned enterprises