| Issue |
E3S Web Conf.
Volume 426, 2023
The 5th International Conference of Biospheric Harmony Advanced Research (ICOBAR 2023)
|
|
|---|---|---|
| Article Number | 02095 | |
| Number of page(s) | 9 | |
| Section | Innovative Management and Sustainable Society | |
| DOI | https://doi.org/10.1051/e3sconf/202342602095 | |
| Published online | 15 September 2023 | |
The Effect of Corporate Governance Regulation on the Profitability of Insurance Companies in Indonesia
Finance (International) Program, Accounting Department, School of Accounting, 11480 Bina Nusantara University Jakarta, Indonesia
* Corresponding author: mohamad.modjo@binus.edu
This study is driven by the growing importance of insurance companies in Indonesia and corporate governance as determinants of their profitability. Corporate governance is crucial in insurance companies as they provide instruments for risk transfers and savings mechanisms and promote investments in an economy. Our research examines the impact of implementing good corporate governance regulation POJK 73/2016 on the profitability of insurance companies in Indonesia. Using samples of all listed Indonesian insurance companies across 200 observations by employing LSDV panel data and 2SLS models, we found that the regulatory reform is negatively related to the company’s profitability and thus reduces performance. The outcomes of this study advocate for the continuation of fine-tuning of existing regulations so it could deliver the stated objectives.
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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