The study aims to construct a cross-firm corporate governance index to predict firm performance. The index consists of 15 governance elements from a large sample of the Indonesian firms covering the period from 2003 to 2013.,This study presents robust results as the findings are tested by applying the generalized method of moments (GMM) estimator to eliminate endogeneity problems and unobservable heterogeneity posed by the relationship between performance and firm-level governance practices.,The results indicate that the corporate governance index is associated with enhanced corporate financial performance. Likewise, the findings reported under the pooled ordinary least squares and GMM also indicate corporate governance sub-indexes (elements), which have significant effects on performance: whistleblower mechanism, audit quality, board of director size and blockholders.,In the emerging market context, this study supports the notion that active and self-regulated governance practices are appreciated by the market and, in the end, can have a positive impact on financial performance. The analysis adds to the empirical literature by providing insights into how governance provisions are being actively implemented in the micro level. With regard to weak governance practices, this study is consistent with previous studies, according to which, firms have the opportunity to use corporate governance as a way of differentiating themselves from other players in countries with poorly regulated investor protection and institutional settings.,This study makes a positive contribution, as it looks at the impact of Indonesia’s corporate governance compliance on the basis of a set of 15 unique governance provisions, including the findings of the positive influence of corporate governance in family business.

中文翻译：

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印尼公司治理合规与绩效的跨公司分析

该研究旨在构建一个跨公司的公司治理指数来预测公司的绩效。该指数由2003年至2013年期间的大量印尼公司样本中的15个治理要素组成。通过采用广义矩量法（GMM）估计器消除内生性问题和绩效与公司层面的治理实践之间的关系造成了不可观察的异质性。结果表明，公司治理指数与增强的公司财务绩效相关。同样，在汇总的普通最小二乘法和GMM下报告的发现也表明了公司治理子指数（要素），这些子指数对绩效产生重大影响：举报人机制，审计质量，董事会规模和大股东。在新兴市场的背景下，本研究支持以下观念：积极和自律的治理实践受到市场的认可，并最终对财务绩效产生积极影响。通过提供有关微观层面如何积极实施治理规定的见解，该分析增加了经验文献。关于薄弱的治理实践，本研究与先前的研究一致，根据该研究，公司有机会利用公司治理作为与投资者保护和制度设置不严格的国家中的其他参与者区别开来的一种方式。做出积极的贡献，