The Odd-Even Effect in The Boards of Commissioners and Corporate Values

  • Ardhi Islamudin Faculty of Economics and Business, Airlangga University, Indonesia
  • Gerrinko Giffari Wurintara Faculty of Economics and Business, Airlangga University, Indonesia
  • Yustrida Bernawati Faculty of Economics and Business, Airlangga University, Indonesia

Abstract

This article enlarges the literacy about the characteristics on board of commissioners by adding a new perspective, namely the odd-even effect in board of commissioners’ structure. This type of research was quantitative research. When the board of commissioners is formed with an odd number, the decision making process will be easier and more efficient. It is because there is no possibility of a voting tie and result the one directional perspective. It is different, when the board of commissioners is formed with an even number. It will trigger a voting tie in the decision making process. Therefore, there is a possibility of different perspective in the board of commissioners. As a result, the odd or even proportions number in the board of commissioners affects the corporate value. The smaller number board of commissioner’s forms a stronger board of commissioners. Then, the company that have odd boards of commissioners has a higher corporate value than the company that has an even board of commissioners.


Keywords:   corporate value, odd-even effects, board of commissioners.

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Published
2020-06-02
How to Cite
ISLAMUDIN, Ardhi; WURINTARA, Gerrinko Giffari; BERNAWATI, Yustrida. The Odd-Even Effect in The Boards of Commissioners and Corporate Values. Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 15, n. 2, p. 308-316, june 2020. ISSN 2303-1018. Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/56051>. Date accessed: 09 aug. 2020. doi: https://doi.org/10.24843/JIAB.2020.v15.i02.p12.
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Articles