Articles
| Open Access | Corporate Governance, Financial Integrity, and Their Interplay with Leverage and Company Size
Bakti Hasan , The Faculty of Economics and Business, Riau University, Pekanbaru, IndonesiaAbstract
Corporate governance plays a crucial role in ensuring financial integrity within organizations, serving as a framework for effective decision-making, accountability, and transparency. The relationship between corporate governance, financial integrity, and financial variables such as leverage and company size is critical in understanding how governance mechanisms influence a company's overall financial health and performance. This study investigates the interplay between corporate governance practices, leverage, and company size in shaping financial integrity. Utilizing a sample of publicly listed companies, the research examines the effect of corporate governance structures (e.g., board composition, ownership structure, and executive compensation) on key financial indicators, including financial transparency, profitability, and risk management. The study finds that companies with strong corporate governance structures exhibit higher levels of financial integrity, particularly in reducing the risks associated with excessive leverage and managing the challenges related to company size. Moreover, the results suggest that the effectiveness of corporate governance in promoting financial integrity is more pronounced in larger firms, where the complexity of financial decisions and governance mechanisms is more significant. This research highlights the importance of corporate governance in fostering an environment conducive to financial stability and long-term value creation, especially in firms with high leverage or large-scale operations.
Keywords
Corporate Governance, Financial Integrity Leverage, Company Size
References
Alviyani, K. (2016). Pengaruh Good Corporate Governance, Karakter Eksekutif, Ukuran Perusahaan, dan Leverage terhadap Penghindaran Pajak (Tax Avoidance). Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 3(1), 2540-2554. https://jom.unri.ac.id/index.php/JOMFEKON/article/view/11930.
Anthony, R. N., & Govindarajan, V. (2012). Management Control System.Jakarta: Salemba Empat.
Brigham, E.F., & Houston, J. F. (2001). Manajemen Keuangan. Edisi Kedelapan Buku 2. Jakarta: Erlangga.
Cadbury. (1992). Report of Committee on The Financial Aspects of Corporate Governance.Great Britain: Gee.
Cahyono, D. D., Andini, R., & Raharjo, K. (2016). Pengaruh Komite Audit, Kepemilikan Institusional, Dewan Komisaris, Ukuran Perusahaan (Size), Leverage (DER) dan Profitabilitas (ROA) terhadap Tindakan Penghindaran Pajak (Tax Avoidance) pada Perusahaan Perbankan yang Listing BEI Periode Tahun 2011-2013. Journal of Accounting, 2(2). https://jurnal.unpand.ac.id/index.php/AKS/article/view/462.
Dewi, N. K., & Putra, I. M. (2016). Pengaruh Mekanisme Corporate Governance Pada Integritas Laporan Keuangan. E-‐JurnalAkuntansi Universitas Udayana, 15(3), 2269-2296. https://ojs.unud.ac.id/index.php/Akuntansi/article/view/20454.
Fajaryani, A. (2015). Analisis Faktor-faktor yang Mempengaruhi Integritas Laporan Keuangan (Studi Empiris pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2008-2013). Jurnal Nominal, 4(1), 67-82. https://journal.uny.ac.id/index.php/nominal/article/view/6888/5920.
Article Statistics
Copyright License
Copyright (c) 2025 Bakti Hasan
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.