The Influence of Independent Board of Commissioners, Board of Directors, and Audit Committee on Financial Performance

An Empirical Study on Manufacturing Companies in the Basic Industry and Chemicals Subsector Listed on the Indonesia Stock Exchange for the 2019–2023 Period

Abstract

This study aims to analyze the influence of the independent board of commissioners, board of directors, and audit committee on the financial performance of manufacturing companies in the basic industry and chemicals subsector listed on the Indonesia Stock Exchange (IDX) for the 2019 - 2023 period. A quantitative approach using secondary data was applied. A total of 180 observations from 42 companies over five years were selected through purposive sampling. Data were analyzed using multiple linear regression with SPSS version 26. The results show that the board of directors has a positive and significant effect on financial performance, while the independent board of commissioners and audit committee have no significant effect. Simultaneously, all three variables significantly affect financial performance. These findings highlight the strategic role of the board of directors and reinforce Agency Theory, which suggests that effective managerial oversight can enhance company performance. This study is limited to one subsector and a five-year period.