Purpose

This study aims to analyse the effect of corporate governance on investment efficiency and the moderating impact of industry competition on the relationship between corporate governance and investment efficiency.

Design/methodology/approach

The research sample includes a total of 36 publicly listed companies assessed by the Indonesian Institute for Corporate Directorship from 2012 to 2018. Testing is performed on full sample and overinvestment and underinvestment subsamples. Additional testing is further carried out using the generalized method of moments to address endogeneity problems and a robustness test is performed to assess the estimated investment efficiency.

Findings

Corporate governance can increase investment efficiency and the effectiveness of corporate governance is found to drop when the level of industry competition is higher.

Practical implications

The results of the present study corroborate the suggestion that companies need to implement corporate governance mechanisms. Furthermore, designing a corporate governance mechanism requires the scrutiny of the external environment, including industry competition.

Originality/value

The present study adds the profitability factor in the calculation of investment efficiency levels. This study also considers external factors that can influence the effectiveness of corporate governance in determining investment efficiency.

中文翻译：

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印度尼西亚的公司治理和投资效率：行业竞争的调节作用

目的

本研究旨在分析公司治理对投资效率的影响以及行业竞争对公司治理与投资效率关系的调节作用。

设计/方法/方法

研究样本包括 2012 年至 2018 年印度尼西亚公司董事协会评估的总共 36 家上市公司。对全样本以及过度投资和投资不足子样本进行测试。进一步使用广义矩法进行额外测试以解决内生性问题，并进行稳健性测试以评估估计的投资效率。

发现

公司治理可以提高投资效率，但随着行业竞争程度的提高，公司治理的有效性会下降。

实际影响

本研究的结果证实了公司需要实施公司治理机制的建议。此外，设计公司治理机制需要审视外部环境，包括行业竞争。

原创性/价值

本研究在投资效率水平的计算中加入了盈利因素。本研究还考虑了可以影响公司治理在确定投资效率方面的有效性的外部因素。