Life insurance companies have developed in Indonesia. The management of this company comes from the power of the large shareholder and board of directors. The objective of the research is to investigate the influence of large shareholders and the size of the board of directors on the performance of insurance companies in Indonesia. The author derives hypotheses based on review of literatures and tests hypotheses by using multiple linear regerssion model and data set of Indonesia life Insurance Companies in the period of 2013–2020. The impirical results suggest that the large shareholder has power to monitor the behavior of manager in managing insurance company by selecting the best agent (executive officers) in order to manage company affectively and afficiently and achive the company’s objectives. The size of the board of directors attenuates the relatiohship between large shareholders and the company’s performance.
Comments
No have any comment !