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The Effect of Non-Executive Directors and Institutional Ownership on Firm Size: The Role of Audit Committee as a Moderating Variable

Accounting Analysis Journal · Vol. 14 No. 1 (2025) · pp. 56–67

DOI
10.15294/aaj.v14i1.22553
ISSN
2502-6216, 2252-6765
Published
2025-08-05
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

Purpose: The study explores the influence of non-executive directors (NED) and institutional ownership on firm size. Additionally, it examines the role of the audit committee as a moderating variable. Method: The research uses data from the annual reports on the Indonesia Stock Exchange (IDX). The research focuses on the banking industry from 2019 to 2023 with 105 units of analysis. The study employs moderated regression analysis (MRA) to assess the relationship among the variables. Findings: The results indicate that non-executive directors and institutional ownership have a negative effect on firm size. In addition, the audit committee significantly contributes to moderating the relationship between non-executive directors (NED), institutional ownership, and firm size. This study contributes to companies where the audit committee can mitigate the adverse effects of corporate governance and reinforce governance structures to promote firm growth. Novelty: As far as the researcher’s knowledge, this is the first research that examines the role of the audit committee as a moderating variable on the framework of the relationship between non-executive directors, institutional ownership, and firm size.

Keywords

Collaboration network of the authors

26 authors · 95 co-authorship links

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  • Muhammadiyah University of Surakarta
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Trisni SuryariniAffiliation unknown3
Dhini SuryandariAffiliation unknown3
Anwar ZahidAffiliation unknown3
Eko SugiartoAffiliation unknown2
Arif FiyantoAffiliation unknown2
Dwi NurkholisohAffiliation unknown1
Kemal Budi MulyonoAffiliation unknown1
Muh Fakhrihun NaamAffiliation unknown1
Bangkit SanjayaAffiliation unknown1
Achmad ZairinAffiliation unknown1
Anung GunartoAffiliation unknown1
Muhammad Rijalul Azka ArifinAffiliation unknown1
M AkmalAffiliation unknown1
Indah Fajarini Sri WahyuningrumAffiliation unknown1
Linda AgustinaAffiliation unknown1
Prabowo Yudo JayantoAffiliation unknown1
I N KayatiAffiliation unknown1
Fian Tri RohmahAffiliation unknown1
Ima Nur KayatiAffiliation unknown1
Monita Bayu IslamiatunAffiliation unknown1
SuntariAffiliation unknown1
Sara R BasherAffiliation unknown1
Sukirman SukirmanMuhammadiyah University of Surakarta1
Siti Nurul FaizahAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/aaj/oai, first harvested 5 Nov 2026, last seen 5 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">The Effect of Non-Executive Directors and Institutional Ownership on Firm Size: The Role of Audit Committee as a Moderating Variable</dc:title>
	<dc:creator xml:lang="en">Hidayah, Retnoningrum</dc:creator>
	<dc:creator xml:lang="en">Ratmono, Dwi</dc:creator>
	<dc:subject xml:lang="en">Firm Size</dc:subject>
	<dc:subject xml:lang="en">Non-Executive Director</dc:subject>
	<dc:subject xml:lang="en"> Institutional Ownership</dc:subject>
	<dc:subject xml:lang="en">Audit Committee</dc:subject>
	<dc:description xml:lang="en">Purpose: The study explores the influence of non-executive directors (NED) and institutional ownership on firm size. Additionally, it examines the role of the audit committee as a moderating variable.
Method: The research uses data from the annual reports on the Indonesia Stock Exchange (IDX). The research focuses on the banking industry from 2019 to 2023 with 105 units of analysis. The study employs moderated regression analysis (MRA) to assess the relationship among the variables.
Findings: The results indicate that non-executive directors and institutional ownership have a negative effect on firm size. In addition, the audit committee significantly contributes to moderating the relationship between non-executive directors (NED), institutional ownership, and firm size. This study contributes to companies where the audit committee can mitigate the adverse effects of corporate governance and reinforce governance structures to promote firm growth.
Novelty: As far as the researcher’s knowledge, this is the first research that examines the role of the audit committee as a moderating variable on the framework of the relationship between non-executive directors, institutional ownership, and firm size.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-08-05</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/aaj/article/view/22553</dc:identifier>
	<dc:identifier>10.15294/aaj.v14i1.22553</dc:identifier>
	<dc:source xml:lang="en">Accounting Analysis Journal; Vol. 14 No. 1 (2025); 56-67</dc:source>
	<dc:source>2502-6216</dc:source>
	<dc:source>2252-6765</dc:source>
	<dc:source>10.15294/aaj.v14i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/aaj/article/view/22553/5569</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Accounting Analysis Journal</dc:rights>
</oai_dc:dc>