Emil Bachtiar Assesses the Influence of Family Involvement, Directors with Career Background, Board Capital from the Board of Commissioners in the Company
Nino Eka Putra ~ Humas FEB UI
DEPOK – Accounting Science Postgraduate Program Faculty of Economics and Business, University of Indonesia held an open session of Doctoral Promotion Emil Bachtiar (1206310045) which took place at the Postgraduate Auditorium, Postgraduate Building, on Thursday (1/16/2020).
The Doctoral Promotion Session was chaired by Prof. Nachrowi Djalal Nachrowi, with his supervisor, Prof. Dr. Lindawati Gani (Promoter), Elvia Rosantina, Ph.D. (Co-Promoter 1), and Dr. Ancella Anitawati Hermawan (Co-Promoter 2). As the testing team, Prof. Sidharta Utama, Ph.D. (Chief Examiner), Hilda Rossieta, Ph.D., Dr. Vera Diyanty, Dr. Mahjus Ekananda, and Helson Siagian, Ph.D.
The dissertation raised by Promovendus, entitled “The Influence of Family Involvement, Directors with Career Background and Board Capital from the Board of Commissioners on Company Performance”. This study cannot prove that there are significant differences between the types of family involvement developed based on the dimensions of founder’s involvement and successor involvement.
The four types of family involvement, namely the involvement of the founder, successor, founder & successor, and family involvement. However, this study proves that the involvement of founders has a positive effect on company performance, and the involvement of successors has a negative effect.
Non-family directors whose career backgrounds have a positive effect on the company’s market performance for each type of family involvement, except the involvement of several founders. This finding supports the argument that directors with a career background meet the criteria of being part of familiness as defined by Habberson and Williams (1999).
The negative influence of non-family directors with career backgrounds on the influence of the involvement of some founders on company performance may be due to a more pronounced atmosphere of nepotism so that the best people leave the company and directors with career backgrounds are actually not high achievers.
Board capital depth has a positive effect on all types of family involvement and directors with a career background (including the involvement of several families), except for the involvement of one founder.
This exception might be due to the fact that one founder already has adequate human capital and social capital, coupled with the team of directors he developed, so that the presence of the commissioners who also have the same abilities & expertise as the founders actually causes prolonged debate in unproductive companies.
The diversity of board capital (board capital breadth) does not affect all types of family involvement and directors with a career background (including the involvement of several families), except for the involvement of founders and successors.
From the findings obtained, it can be concluded that directors not having a well-developed family background can maintain the familiness of the family company, while the board of commissioners with the same background can help the family company not only in dealing with environmental uncertainty as argued by the RDT theory, but can carry out effective supervision of the possibility of altruism asymmetry.
Sensitivity analysis which is done by replacing the variables of career directors with non-career directors variables supports the conclusions of this study. Directors are not family members whose background has only a positive effect on the influence of successor involvement on company performance, where the professionalism of directors with a non-career background can overcome the problem of asymmetry of altruism.
However, the presence of a commissioner causes no difference in the influence of non-family members of directors from non-career backgrounds on the influence of the type of family involvement.
Thus, the Leadership Council of the open session of doctoral promotion decided, Emil Bachtiar (1206310045) was declared to graduate with the title of Very Satisfactory and succeeded in obtaining the 73rd Doctorate in Accounting. Congratulations to Dr. Emil Bachtiar! (Des)
