Economic Development of Kenya and Singapore Case Study - 1

Economic Development of Kenya and Singapore - Case Study Example Whether it is in the form of education, governance, or availability of social amenities, the colonial powers had made no moves at empowering their subjects (Meredith, 2000). The departure of the colonialists, though an event that had been looked forward to by the natives, who had fought hard for their freedom, also brought great trepidation. The young nations had to take their first wobbly steps in self governance, international relations and trade, as well as come to terms with globalization which was being thrust upon them. Kenya and Singapore, who attained independence within two years of each other in 1963 (Ndulu, 2008) and 1965 (Yew, 2000) respectively, both had underdeveloped economies with limited industrialization and a heavy dependence on the agricultural sector. However, there was great potential for development for both countries. Forty years down the line, Singapore, along with several East Asian countries, has been able to raise herself from the status of 'third world' to a quickly growing economy. Kenya, and most other African countries, on the other hand, is still mark timing with no real advances made (Findlay et al, 1993). The question then arises why today majority of African countries, taking Kenya as a case study, are vastly underdeveloped economies while those in East Asia have moved up the ladder to be labeled as fast growing economies. This is what shall be analyzed and discussed, by reviewing both countries economic policies, their strengths and shortcomings to try find out what has been done right, or what needs to be revised. 1960: A look at Kenya and Singapore four decades back Le Blanc (1980) traces Singapore's economic growth from 1960 to the 1980s. He says that though Singapore was considered an underdeveloped economy in the sixties, the transformation that was to be seen two decades later was amazing. On the basis of the three most common development indicators namely, social services, education and per capita output with little indebtedness, Singapore can simply not be classified as a third world country (Le Blanc, 1980). Singapore under British colonial rule was considered a major trade port and a military outpost for Britain. However, with the disintegration of the colonial empires, Singapore faced a privation because she had been the meeting point for these empires. Her trade was built around exporting spices, rubber and timber in exchange for machinery and processed goods. When Indonesia and Malaysia gained independence, they opted not to conduct trade with Singapore and thus she lost thee source of her export materials (Daquila, 2000). Her situation was made worse by the communist agitations in china, the impacts of which she experienced in the form of civil unrests and political tensions within the country that scared away any aspiring foreign investors(Yew, 2000). Singapore looked abroad for help on the way forward and was receptive to the recommendations made by the United Nations Industrial Survey Mission. The Singaporean government realized that it had to achieve three things before it could move towards industrialization (Dent 2002). These were: - The abolishment of the communist party so as to create room for industrial stability as well as instilling discipline in the relationships

Discrimination of African Americans Essay Example | Topics and Well Written Essays - 1000 words

Discrimination of African Americans - Essay Example Malcolm X, who was shot down for his activities and involment against inequality and racism existing in the country. The period of 1955-1968 saw the emergence of the civil rights movements aimed at outlawing racial discrimination against the African Americans and giving them back their right to vote. The emergence of the Black power movement, which lasted from 1966 to 1975? supported the civil rights movement to expand their aims as well as protect racial dignity and freedom from oppression by the whites. In the year 1965? the Voting Rights Act was passed, and it was considered to be the most successful period of civil rights legislation ever adopted by the United States congress. This action of the congress was greatly appreciated and supported by almost all African Americans in many southern parts. All these acts and legislations passed that were passed? during that time? facilitated the eradicaton of ongoing obstructions faced by the African Americans against their right to vote. The situation and condition of the working class in the United States improved immediately? once the country got involved in the World War II. The nation saw a drastic increase in the employment rate from its 1940 levels. Employers were desperate to fill positions required in the production of military equipments, vehicles, weapons and ammunition. The vacancies were open to traditional workforce, women as well as the non-whites who had long been excluded from skilled and high paying industries. The emergence of the Black Panther Party (BPP) saw a dramatic change in the political scenario in the United States during the period. It was a progressive political party that stood for the rights of the working class people in America since the civil war. The BPP was... Rgis paper stresses that there are places where racism exists between the whites and the African Americans. But the situation was much worse during a few decades back. The African Americans had no rights and were totally supressed and oppressed under the power of the whites. Let us take a look at the America as it was after the 1950s. At the beginning of the 1960s, the Americans believed that they were about to witness the golden age or, in other words, the era of golden age was about to begin. On Jan 20, 1961, John.F.Kennedy was elected as The President of the United States. But the golden age was never materialised and the end of the 1960s seemed to be the downfall of the nation. During his presidential campaign, John.F.Kennedy had introduced laws and reforms to eliminate injustice and racism in the country. But these laws did not bring with them solutions to any of the problems faced by African Americans in US. This paper makes a conclusion that it becomes evident that it was because of the joint efforts of a lot of leaders, especially African American ones, that they could restore equal treatment and rights just like the white people had. A lot of processions and demonstrations finally paved way to the world in general to realize the fact that there is no point in racial discrimination, or any kind of discrimination for that matter. People all over the world, especially America opened their eyes to the reality that all human beings are the same despite what his race, religion, caste, ethnicity or nationality may be.

Medical anthropology Essay Example | Topics and Well Written Essays - 250 words - 1

Medical anthropology - Essay Example st, and the author of ‘Pathologies of Power: Health, Human Rights, and the New War on the Poor’, (Farmer 4) displayed a corresponding between medical anthropology with that of the stories of his personal past. Farmer believes that listening forms the work we normally do. He sharpened his listening skills, which get used in anthropology on an ethnographic context, when his first night at an emergency room, noticing that many slight cases were brought in just because people had no other opening for treatment (Farmer 73). Also, being a good listener helped Farmer to understand the complete effect of a 1981 slavery process concerning migrant workers in Florida (Farmer 29). It was the same skill of listening that helped Farmer understand and tell the story of Haiti’s, and also understand the intricate network that exists between privation and privilege (Farmer 302). Just as the line between primary care and medical anthropology is often indistinct, the â€Å"bracing connection between privation and privilege† becomes even more ostensible the longer one devotes studying both extremes (Farmer 354). While at first, the part of anthropology that divides the structures of violence appears isolated from medical anthropology, these structures of violence introduce the vast inequalities that make medicine to seem inaccessible. Structural violence results to a system in which victims are blamed, endowing those who suppress the victims while inhibiting victim’s access to healthcare. Farmer’s speech could have been unforeseen in its biographical content, but perhaps the key point is that the connection between anthropology and medicine can be viewed not as a single fact but a line that goes the full length on each of these disciplines. It is with listening, understanding privation and privilege (Farmer 82), and avoiding violence, that the future medical anthropologists will bridge the gap between practical medicine and social

Archeology Essay Example | Topics and Well Written Essays - 500 words

Archeology - Essay Example Archaeology's close connection with history proves to be an important one. Historical accounts are often based on unearthed and discovered materials. Archaeological records are significant devices in history and anthropology (Neustupny, 1993). Thus, archaeology is an important tool in the continuous writing and understanding of man's history. As new evidences are uncovered, history as we know it may change and may evolve into a better and more truthful account of the past. However, the case may be the opposite, as what may happen if biased study or poor analysis of the excavated materials is carried out. In the end, the importance of archaeology in the uncovering of the very history of man cannot be undermined. "Archaeology has progressed," and the reason is that we, or most of us, no longer consider the creation theory of thousands of BC years (Johnson, 1999, p. 172). Archaeologists carry out important processes that lead to the significant part of their job. Traditional methods may be as what we see in films, and the modern practices have certainly improved. The systematic study of the past (Gamble, 2004) often starts with surveying areas. If significant conclusions are drawn from the initial process, then the excavation plan will proceed.

Develop and document the scope of a project Research Paper

Develop and document the scope of a project - Research Paper Example They are Marketing and Sales departments. The corresponding departments in the sister company also perform the same function and are highly interdependent. These departments are very essential if not the most important departments for both companies in case of undertaking the project of releasing the new product to the market. This is so because of the strategic role the departments play in the successful realization of the project implementation (Dervaes, 1998). This paper tries to give a brief scope of the project with a clear outline of some important issues that concern the project. Some of the issues that are outlined in the scope include, but not limited to: the deliverables in the project, the specific limitations of the project and its scope together with the specific exclusions and assumptions that come with the project while implementing the project. These assumptions are specific to the operations that are undertaken in the distribution chains in Winsome sales department. Some of the specific deliverables that are expected from the project include meeting the sale volumes that have been set by the sales and marketing departments of both companies. The company plans to double the sales volume in the next fiscal year as a result of an introduction of the new product. This could mean that the Sales department would be required to increase their human resource capacity by contracting more staff to help in the achievement of these targets. Alternatively, Winsome manufacturing would procure the services of its sister company. To choose one among these two options, the company will undertake an analysis to find out which of the two options is a better one concerning the financial obligations that each project requires. If procuring the services of the sister company is the cheapest option, there must be specific terms and conditions that should be agreed upon in order to make sure the company will succeed. The factors that affect the project also include it s limitations and challenges. They must be well addressed in order to help the company successfully meet its targets without obligatory affecting other products (Dervaes, 1998). A steep competition from the other firms in the industry must be considered. Elaborate plans to counter their influence must be adhered to in order to achieve the overall objective of the company which is to double its sales volume in the next fiscal year. There are key elements of the products that must also be addressed like the branding which will help market the new product. Its pricing structure must also be addressed well with intense marketing also done. Some of the specific exclusions that must be identified in order to be certain that the venture succeeds include excluding this particular project from the other products that have been manufactured by the company. This product should be given a lot of emphasis with its features and advantages made known to all the customers who would be as well poten tial buyers of the product. Other existing products that the firm is producing in the market should also be excluded in the general analysis of the firm performance (Mathur, 2006). There must also be proper communication channels between the two companies and strategic customers. These means that all the information regarding the product must be made available to sales representatives of both Winsome and the sister company, and they should be able to pass the same

Systems Case Study Essay Example for Free

Systems Case Study Essay The subway network can be split into 4 main sub systems, those being design, manufacturing and maintenance, operation and customers. The design process initially involves designing the desired rail network, however once the entire system in in operation the design sub system involves the constant re design of features and parts caused by arising issues as well as updating the system to use newer technologies. This subsystem requires many disciplines of engineering including electrical which designs many of the electrical features including the main power system responsible in powering  of the overall system [1], civil which designs structures such as stations, bridges and tunnels underneath the city [2] and mechanical which is involved in the design of railway vehicles [3]. The manufacturing and maintenance subsystem involves the building of everything required for the system to function from manufacturing the trains themselves to constructing the network of rails, tunnels and stations they travel through. This is all continuously maintained to assure it is reliable and fully functioning to allow for the system to be operated. One important engineering discipline involved in the manufacturing subsystem is manufacturing engineering which with the aid of many other engineering disciplines is able to turn raw materials into new products such as train carts, railway tracks etc [4]. The operation process is the subsystem that the customers or users of this system rely heavily upon. The operation of this system involves using all the parts of this system in order to fulfil its function of transporting its users. The operation process involves constant monitoring of the system in order to allow for a schedule as well as maintain safety and assure the system is functioning correctly. This all requires many operators such as traffic controllers, drivers and conductors. Software Engineering is a very important part of the operation process as it is responsible for developing software to track rail carts, display arrival times and operate automated train supervision [5]. The final subsystem of this system is the customers or the users. This system includes all the users of the rail system and as the main purpose this system is to provide customers with transportation this subsystem like every other relies heavily upon all the other subsystems in order to allow the rail system to function. The main subsystems or the systems key elements interact strongly with each other and rely heavily upon each other in order for the system to function. The whole purpose of the rail transportation system is to create a more efficient, convenient and more simple way for people to travel to and from a desired location. A high level of intelligent communication and interactions between the subsystems allows the system to meet its desired outcomes. As transportation is the users need there is a strong interaction between the customers and the operation subsystems. In order to meet customers’ needs the operation of this system needs to be working efficiently, this requires all the parts involved in this subsystem to be running proficiently as any dilemmas within this subsystem can impact the customers causing problems such as delays and accidents which can lead to many complications with the system as a whole [6]. In order to meet customers needs there is a strong interaction between the operation and the manufacturing and maintainance subsystems. In order to operate the system there initially needs to be parts that have been manufactured such as tracks, stations and trains. However once the system is running constant maintenance on parts as well as the manufacturing of new parts are needed in order to allow to allow for the operation of the system to run efficiently [4]. Problems in the manufacturing and mainanace system can furthur lead to operation issues that can have a devastating impact on the customers. To assure that apropriate parts are made the manufacturing and maintainance subsystem relies on the design subsystem. This subsystem is extremely important in assuring that features of the system are designed  apropriatly eliminating any potential risks during the manufacturing and operating stages [7]. Finally the customer subsystem has strong interaction between all the other main susbystems. Actions and the behaviours of the customers infuluences and changes the ways all the subsystems interact. More users require more operation which leads to the need of more manufacturing, maintainence and design. Less users can potentially reverse this effect. In order to create a sustainable system the key elements need to rely heavily upon each other [8].

Effect of Corporate Governance on Attracting Investors

Effect of Corporate Governance on Attracting Investors Corporate governance is the way of corporation being directed which is involves a relationship between the manager , the shareholders , and other stakeholders of the company. The use of corporate governance is to provides the structure through which the objectives of the company are set. In adopting a good corporate governance, companies should be transparent of the financial reports. Now adays most company around the world have adopt good corporate governance system , but some of the countries have not adopt the system. In this project , it will contain a research of the corporate governance status in Indonesia. Wether most of company in Indonesia have adopted a good corporate governance or not. Inside this project, there are two research question which is using different type of statical analysis. The first research question was made to found out wether is it true that a good corporate governance will attract more investors to the company. The second research question was made to know have most company in Indonesia have issue their corporate governance report according to the standard and transparency. And the result of the research is that there are some correlation between the corporate governance and performance of company. The other finding is that some of the company in Indonesia still not transparent in disclosing the corporate governance report. Chapter 1 Introduction Research background Corporate governance is one of the important factors that should be maintain inside the company. Now adays a lot of investors not only looking for financial reports of the company but they are also looking for the corporate governance status of the company. Since the financial crisis in 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s. Indonesia facing some diffculties in the economic factors. Alot of company were collapse , because many directors made a wrong decision. From that moment the economic and political condition in Indonesia is not stable. This problems will effects the corporate governance system in Indonesia. But by creating a good corporate governance structure they are some benefit from it. A good corporate governance system will help directors, corporate managers , and owner to better governing the company. Many international investors hesitate to invest their money if the corporate governance structure does not so good. They want to know how well the is the directors can manage the company. There are some important key role of the corporate governance which are a transparency of the company financial and non-financial reportings , independent commisioner , and audit committee of the company. Investors want to know clearly the way of company leaders directing their company in achiving the goal. Investors will not invest their money if the company does not have a clear structure of the company. That is why adopting a good corporate governance may have some advantages, it will be easier to obtain capital and increasing share price. Using the data of corporate governance it can also effects the performance of the company.The corporate governance report will shows all the activity of the leaders inside the company. In governing a company there are rules for the directors , managers, and shareholders that must be follow. Such as a Annual General Meetings, most of the leaders of the company must attend this meetings at lease twice a year. If they are not fullfil their job as a leader of the company, it will be reported in the corporate governance report. 1.2 Research Objectives 1.2.1 Primary Research Objectives The primary objectives of this project is to give some information about the latest situation of coporate governance in Indonesia using the latest data which is taken from the year 2009 and also a questioner which is from the year 2010. Many people believes that a good corporate governance system can attract more investors to the company, so inside this project it will tested wether that statement is true or not. And this project also want to know wether most of company in Indonesia have disclosed their corporate governance reporting transparently. 1.2.2 Secondary Research Objectives The secondary objective of this project are : From the research it will shows the advancement of corporate governance system in Indonesia. Showing the effectiveness of corporate governance reporting for the company Take some feedback from the employee in Indonesia about the corporate governance situation in the company where they are working. Chapter 2 Literature Review A good corporate governance is important for a company around the world. Instead of financial data of the company, investors also looking at the corporate governance disclosure data before they are deciding in which company that should they invest in. From the data it will show the management situation of that company. Some of the country around the world still very low in conducting a good corporate governance. Conducting a good corporate governance will make the company more profitable , it will attract more shareholders to invest in our company. Lawrence D. Brown and Marcus L. Caylor (2004) using a sample of 2,327 companies and based on 51 corporate governance provisions which is provided by Institutional Investor Services (ISS) they found out that companies which are better governed relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Based on a data which is taken from Institutional Shareholder Service , they create b road measure of corporate governance and they create Gov- score. The Gov-score was measured of 51 factors which is encompassing eight categories of the corporate goverenance which is : board of directors , auditors , characters by laws , executive and director compensation , ownership , progressive practices , and state of incorporation. Financial problem now adays become the major topic globally , it effects a lot of firms around the world. PaquitaY. Davis , Li Li Eng , and Chao-Shin Liu (2006) they were investigate the role of corporate governance mechanisms and accounting system in four different countries in Asia which is Indonesia , Korea , Malaysia , and Thailand. Those countries were effected by Asian financial crisis. They found out that it is depends on the corporate governance mechanisms and accounting system in effecting the book value of equity and it is also determining the relation between the accounting information and stock prices during the economy-wide financial crisis. Results of their finding is the earnings in Thailand and Indonesia was reduced during the Asian financial crisis and increased in book of value. In Korea , neither earnings nor book of value was impacted by the crisis. And the last one which is in Malaysia both book of value and earnings was decreased during the Asian financial crisi s. Bernard S. Black , Woochan Kim , Hasung Jang , and Kyung-Suh Park (2009) conduct a research in KCGI (Korea Corporate Governance Index). They try to find the relation between level of corporate governance and the effects the firm market value. And the findings of their research that overall firms that are better governed got a some competitive advantage than other company. From the research , overall firms who got higher KCGI will get higher dividends , got a lower capital expenditures ( because of Korea firms that are overinvest) but the investment is more sensitive to profitability , lagged board structure predicts higher profit , the related party transactions will reduce adverse for firm value. Robert W.McGee (2010) Indonesia need to develop the structure of the corporate governance. By developing a good corporate governance he found out that it will helps increasing the share prices and it will be easier to obtain capital. And from his research information which is from the Worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s bank ROSC report about rights of shareholders , equitable treatment of shareholders , role of stakeholders in corporate governance , disclosure and transparancy , and responsibility of the boards from the scale one to five , Indonesia overall score is 2.83% which conclude from his research that corporate governance in Indonesia is need to be develop. From the research he suggested that companies in Indonesia need to strenghten shareholder access to the information of the company , in treating the shareholders must be equally , and company must fully adopt the International Financial Accounting Standards (IFRS) and also International Standards of Auditing. Meidyah Indreswari (2006) identified Indonesia corporate governance status which was turn bad because of the tragedy of economic crisis in 1997. From the research the writters found out there are several factors that make corporate governance fail in that year. Firstly, using agency theory to explain the relation between the agent and the principal was more problematic in ISOEs than the private enterprise. Secondly, the rules of board director and management is really important for the company. Government should reduce their intervention in ISOEà ¢Ã¢â€š ¬Ã¢â€ž ¢s operating system in order to make the boards of the company to work more effective. Thirdly, findings of the research shows that the corporate governance in Indonesia was not effective due to unclear information about role of corporate governance and also a unclear programmes of the company. These problems can create the lack of commitment of the employee to the company which lead to failling of the corporate governance. La stly, other factors that lead into fail corporate governance are culture , public governance , and law enforcement. In order to fix those factors, there should be a joint efforts from the public sectore is needed to ensure a good corporate governance will be occure. A study also conducted by Maria Andersson and Manal Daoud (2005) using the agency theory to test the factors that influence the corporate governance disclosure information in Swedish listed corporations. Using 41 listed companies in Swedish as an example , according to they research it found out that factors that influence the corporations are the parents company it self and the size of the corporation in disclose the corporate governance information. They also find out that agency theory is not a proper theory to find the influence of corporations in disclose information about corporate governance. Zheng Fan , Liyan Wang , Jidong Zhang (2008) they conduct a research about the relation of company motivation in voluntary disclosure will effect the earning quallity of the company. The research information was taken from the Chinese capital market in 2004-2006 period. And the results of their result is that the company disclosure data and corporate governance of the company will not effects the earning quality of the company. There are many companies in different countries that already adopted a good corporate governance. When a lot company have adopted a good corporate governance and shows the transparency of the company performance, it will be easier for the investors to choose in which country they will invest in. But in some countries such as Indonesia there are still some difficulties in adopting a good corporate governce. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Dudi M. Kurniawan and Nur Indiriantoro (2000) did a research about the status of corporate governance in Indonesia. And the findings of the study were divided into 5 different parts which are factors that influence the corporate governance status in a company. The first part of his research was about the ownership structure in Indonesia companies. And he found out that Indonesia had two boards in corporate governance system which is not effective for the company. The second part of his research was about the efforts to develop the corporate governance in Indonesia , and he found out that Indonesia corporate governance still need a help from the international countries. The third part of his research was about the accounting standards in Indonesia which should be written according to the basic of International Accounting Standards. The fourth part of his research tell us about audit standards and the audit profession in Indonesia. He suggested that Indonesian auditors need to pay atte ntion to the standards in Indonesia. It is because according to his research a lot of Indonesian auditors look for USA auditors standards and forgeting the standards in his country. This will be a crucial effects for the company. And according to his research the cause of Indonesian financial crisis in 1997 was the auditors in Indonesia miss ditection of fraud that happened in most of companies in Indonesia. This fraud make a lot of company in Indonesia collapse.The fifth parts of his research found out the disclosure data of corporate Indonesia still need to be more transparancy to the public. So from his research conclude that there are a lot of challenges in conducting a good corporate governance in Indonesia but those challenges can be minimize if there is an efforts to conducting a good corporate governance from inside the company. Werner R. Murhadi (2009) did a research using some information from the Indonesia Stock exchange in period 2005-2007 specializes in manufacture companies to test the performance of the corporate governance in Indonesia. He was using five good corporate governance indicators which are independent commisioner , CEO duality , audit committee , top share , and shareholders coalition to investigate rather it will effects the earning management practices. The findings of the research was a good corporate governance will effect earning management practices which done by the company. Another thing that he found out from the research was a lot of companies in Indonesia do EM ( Earning Management ) with negative leans. The purpose of the company do that is to make their revenue look smaller which can help the company to avoiding tax. Sanjeev Bhojraj and Partha Sengupta (2001) they conducted research about the effect of corporate governance to the bond ratings and yield. They found out that corporate governance mechanisms will reduce conflicts of interest between the directors and the providers by monitoring to their actions. And they were also found out that company which have a greater institutional ownership and got influence by the external control of the board will have a lower bond yields and high ratings for the new bond issues. From the research they are suggested that company that are facing stronger external monitoring from the governance mechanisms are rewarded with low yields and high bond ratings. Monitoring the situation of the company should be maintain so it will stabilize the firm value of the company. Sridhar Arcot and Valentina G. Bruno (2009) studied about the different type of corporate governance will effects the firm performance. Their studied the effects of law in a country to the corporate governance mechanism. Since law and regulation is different from one country to the others, according Sridar and Valentina company must adjust to that law especially for the multinational firms. Disclosing corporate governance report is one of the important factor because they found out some of the governance report was uninformative which mean it was not clear. The impact of the weak corporate governace was it shows the the inefficient use of the firms resources which can lead to the poor operating income. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Siti Nuryanah (2009) said there are still a problem in Indonesia corporate governance specially in audit committee. The problems in audit committee in Indonesia is that they holding a double positions in other companies, which it make the audit committee is not efficient in doing the works. And also , there are some company that does not have an audit committee. By not having an audit committee will become a problem for the board of committe in taking a decision. The research found out that 30 % from the JSX (Jakarta Stock Exchange) public listed companies does not have independent commisioners. Although that kind of problem occure , from her results it was found out that most of the companies in Indonesia have complied with the regulation of corporate governance. Chapter 3 Methodology 3.1 Data The data of this project was taken from annual report in Indonesia stock exchange, IICD (Indonesia Institute for Corporate Directorship) reports which is the latest report, and 100 questioners which is given to the working people in Indonesia. The questioner was translating into Indonesia Language. 3.2 Methodology In this project there are two-research question that can lead to the answer of this research project. Each of the research questions will be tested in different type of statistical analysis test. The two-research questions of this project are: First: Is it true that adopting good corporate governance will attract more investors? Second: Using some factors in corporate governance reports, does most company in Indonesia have report their corporate governance data transparently? By using these research questions, several questions in the questionnaire had been made to gather answers from the respondents which then it will be linked back to answer the research questions. Inside the questioner there are divided into two section. The first section of the questioner is basic question about the corporate governance and the employee posisition in a company which they are working. The second section of the questioner is the important answer for this project which is contain all information that will be used to analyze. As for the following questions in the questionnaires, respondents will be asked about questions which are mostly related to the research questions 3.2.1 Research Question 1 Is it true that adopting good corporate governance will increse the company performance ? Hypothesis: H1: good corporate governance will give a significant effect to the company performance H0: good corporate governance will not give a significant effect to the company perfirmance From the research that was conducted by Lawrence D. Brown and Marcus L. Caylor (2004) said that there were some advantages in adopting a good corporate governance. He was using a sample of 2,327 companies and based on 51 corporate governance provisions that are provided by Institutional Investor Services (ISS). And found out that company that are better governed are relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Another people that argued about corporate governance mechanisms were Sanjev Bhojraj and Partha Sengupta they found out corporate governance mechanism can reduce a conflicts of interest between the directors. And also a company should monitoring inside the company so the goodness performance of the company can be maintain. From this type of question, from the statement above I would like to test whether companies that have a good corporate governance will have a lot of investors in it and also is it will attract more investors to the company. Using the survey question, it will guide to the answer of this question which are : How effective is the corporate governance report being used in your company? In your opinion, does good corporate governance will attract more investor? H0: à ? = 0 (There is no correlation between corporate governance and number of investors) H1: à ? à ¢Ã¢â‚¬ °Ã‚   0 (There is a correlation between corporate governance and number of investors) Sample correlation coefficient, commonly denoted  r, is calculated as following: Where X and Y are the sample means. T-test for correlation formula: 3.2.2 Research Question 2 Does most company in Indonesia have reported their corporate governance activity data transparently and disclosed it to the public on time ? Hypothesis: H1: All of the companies in Indonesia have disclosed their corporate governance activity transparently and on time H0: Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time Werner R. Murhadi (2009) explored some information period 2005-2007 in Indonesia Stock Exchange specializes in manufacture companies to test the performance of the corporate governance in Indonesia. One of the result from his research was, he found out a lot of companies in Indonesia still not develop transparency in reporting data of the company. A lot of companies want to avoid tax by creating an incorrect data, which is making the revenue of the company looks smaller. Another researcher were Zheng Fan , Liyan Wang , Jidong Zhang (2008) they are argued that the company disclosure data and corporate governance of the company will not effects the earning quality of the company I would like to test whether most of the companies in Indonesia have disclosed their coporate governance data transparently. Because a good corporate governance will show a transparency data, all the performance of the companies which is bad or good must be inform to the public. One à ¢Ã¢â€š ¬Ã¢â‚¬Å"Way Anova (Parametric Test) From using this type of test , data that used to this test will be from question number 7, question number 8, question number 9 and question number 10 , the question from the survey have been desing will be in a way that respondents are asked to rate . This test is used to test the equality of 3 or more means by using the variances. H0:  µ1=  µ2=  µ3=  µ4 ( Most companies in Indonesia have disclosed their corporate governance activity transparently and on time) H1:  µ1à ¢Ã¢â‚¬ °Ã‚    µ2à ¢Ã¢â‚¬ °Ã‚    µ3à ¢Ã¢â‚¬ °Ã‚    µ4 ( Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time) The formulas for the various sums of squares are as follows: SSE = SST à ¢Ã¢â€š ¬Ã¢â‚¬Å" SSA X = sample value ith item in the jth sample n = total sample size Xj = sample value of jth sample nj = size of the jth sample We will get the respective variances if we divide the sum of squares of SSA and SSE which are as follows: F-test formula: P-value: Degrees of freedom = k-1 Degrees of freedom = n-k These two values will be used to find the critical values for the F statistic and helps us to know whether the p-value is less than or more than the significance level. Conclusion: A null hypothesis will be rejected when the significant value from the test is lower than 5 percent 3.2.3 Limitations In this project there are some limitations in it. This project only representing a small objectives of coporate governance practices in Indonesia. Moreover, the data collected from this study are limited which is only from the Indonesia Institute of Corporate directorship and 100 questioners that had been given the working people in Indonesia. Chapter 4 Findings and Analysis 4.1 Data Statistic of Questioner Section 1 4.1.1 Statistics Questioner that was Given To the Respondent N Valid 100 Missing Total Respond 7 93 From the table 4.1.1, It shows that there are 100 valid questioner that have been produced but the respond that can be used only 93 because the other 7 questioner are missing or cannot be use. 4.1.2 Number of respondent that know corporate governance Frequency Percent Valid Percent Cumulative Percent Valid Yes 71 76.3 76.3 76.3 No 22 23.7 23.7 100.0 Total 93 100.0 100.0 4.1.3 Respondent Knowledge Of Corporate Governance Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 5 7.0 7.0 7.0 Bad 17 23.9 23.9 31.0 Neutral 19 26.8 26.8 57.7 Good 19 26.8 26.8 84.5 Very Good 11 15.5 15.5 100.0 Total 71 100.0 100.0 4.1.4 Respondent Status In Company Frequency Percent Valid Percent Cumulative Percent Valid Director 19 26.8 26.8 26.8 Manager 11 15.5 15.5 42.3 Supervisor 13 18.3 18.3 60.6 Non-Supervisor 28 39.4 39.4 100.0 Total 71 100.0 100.0 4.1.5 Relationship Of Directors and Shareholders in Respondent Company Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 7 9.9 9.9 9.9 Bad 18 25.4 25.4 35.2 Neutral 13 18.3 18.3 53.5 Good 26 36.6 36.6 90.1 Very Good 7 9.9 9.9 100.0 Total 71 100.0 100.0 4.2 Data Statistic of Questioner Section 2 Using pearson 4.2.1 Correlations between corporate governance and Shareholders Performance CG effectiveness Shareholders Performance CGeffectiveness Pearson Correlation 1 .219 Sig. (2-tailed) .066 N 71 71 ShareholdersPerformance Pearson Correlation .219 1 Sig. (2-tailed) .066 N 71 71 4.2.2 Correlations between Corporate governance and Commisioners Performance CG effectiveness Commisioners Performance CGeffectiveness Pearson Correlation 1 -.019 Sig. (2-tailed) .875 N 71 71 CommisionersPerformance Pearson Correlation -.019 1 Sig. (2-tailed) .875 N 71 71 4.2.3 Correlations between Corporate governance and Directors Performance CGeffectiveness DirectorsPerformance CGeffectiveness Pearson Correlation 1 .396** Sig. (2-tailed) .001 N 71 71 DirectorsPerformance Pearson Correlation .396** 1 Sig. (2-tailed) .001 N 71 71 **. Correlation is significant at the 0.01 level (2-tailed). IICD ( Indonesia Institute of Corporate Directorship) have made a report about the corporate governance status in Indonesia. Since the corporate governance report 2009 have not been come out yet, I am using the data from the year 2008 which is issued in 2009 by the IICD institute. Corporate Governance Performance by SOEs, Bank, and Overall Category Mean Score of Corporate Governance Performance (%) 2008 Study Previous Study SOEs 76.80 74.63 Banking 75.55 71.11 Overall 61.26 67.29 The table above shows the performance of corporate governance in Indonesia Listed company. The data show in two different categories which are State Owned Enterprises sector and Banking sector. There were difference in Corporate governance performance between the SOEs variable and Banking variable. The SOEs performance was 75.20 %, while Banking was only 56.50 %. However, there are some improvement of corporate covernance practices in both of the group. There were around four percent of increasement for those top quartile and bottom quartile respectively. It is still challenging tasks facing Indonesian corporations, regulatory bodies, and other governance-related institutions how to enhance the commitment of these bottom quartile companies to good corporate governance practices as well as those companies with corporate governace performance between the top and the bottom quartile. This does not mean that attention to those top quartile firms is not necessary. In the meantime, empiric al evidence shows that corporate governance is significantly correlated to companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic performance, although the correlation is weak. OECD Principles Mean Score (%) 2008 Study Previous Study Rights of Shareholders 50.37 51.23 Equitable Treatment of Shareholders 86.35 83.02 Role of Stakeholders 63.64 58.76 Disclosure and Transparency 70.81 66.64 Responsibilities of the Board 59.02 52.36 Overall Mean Score 64.96 61.26 Using the instrument from OECD ( Organization for Economic Co-Operation and Development) the IICD institute has conducted a survey which was given to the 314 public listed company in Indonesia. Inside the survey they are consisting 5 principles of OECD which are : Rights of Shareholders , Equitable Treatment of Shareholders , Role of Stakeholders , Disclosure and Transparency , and Responsibilities of the board. From the survey the IICD institute analyze the status of corporate governance in Indonesia in the year 2008. The results of research shows there are deflation in rights of shareholders in the year 2008 which is 50.37 % and from the previous study it shows that 51.23 %. But others factors for corporate governance in Indonesia had been increase in 2008, such as equitable treatment of shareholders in the year 2008 was 86.35% which is shows an advancement comparing to the previous study only 83.02 %. The role of stakeholders percentage also rise up in the year 2008 which is 63.64 % comparing to the previous study which in only 58.76%. Other factors that have been changing which is disclosure and transparency of the company, in the year 2008 it reach 70.81 % and the previous study only reach 52.36 %. The last factors that upsurged was responsibilities of the board, in the year 2008 in achieve 59.02 % and the previous study only 52.36 %. The overall mean score of the year 2008 was 64.96 % and the previous study was 61.26 %. The data shows that by using the OECD principles , the situation of corporate governance in Indonesia is getting better. Chapter 5 Conclusion and Recommendatio Effect of Corporate Governance on Attracting Investors Effect of Corporate Governance on Attracting Investors Corporate governance is the way of corporation being directed which is involves a relationship between the manager , the shareholders , and other stakeholders of the company. The use of corporate governance is to provides the structure through which the objectives of the company are set. In adopting a good corporate governance, companies should be transparent of the financial reports. Now adays most company around the world have adopt good corporate governance system , but some of the countries have not adopt the system. In this project , it will contain a research of the corporate governance status in Indonesia. Wether most of company in Indonesia have adopted a good corporate governance or not. Inside this project, there are two research question which is using different type of statical analysis. The first research question was made to found out wether is it true that a good corporate governance will attract more investors to the company. The second research question was made to know have most company in Indonesia have issue their corporate governance report according to the standard and transparency. And the result of the research is that there are some correlation between the corporate governance and performance of company. The other finding is that some of the company in Indonesia still not transparent in disclosing the corporate governance report. Chapter 1 Introduction Research background Corporate governance is one of the important factors that should be maintain inside the company. Now adays a lot of investors not only looking for financial reports of the company but they are also looking for the corporate governance status of the company. Since the financial crisis in 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s. Indonesia facing some diffculties in the economic factors. Alot of company were collapse , because many directors made a wrong decision. From that moment the economic and political condition in Indonesia is not stable. This problems will effects the corporate governance system in Indonesia. But by creating a good corporate governance structure they are some benefit from it. A good corporate governance system will help directors, corporate managers , and owner to better governing the company. Many international investors hesitate to invest their money if the corporate governance structure does not so good. They want to know how well the is the directors can manage the company. There are some important key role of the corporate governance which are a transparency of the company financial and non-financial reportings , independent commisioner , and audit committee of the company. Investors want to know clearly the way of company leaders directing their company in achiving the goal. Investors will not invest their money if the company does not have a clear structure of the company. That is why adopting a good corporate governance may have some advantages, it will be easier to obtain capital and increasing share price. Using the data of corporate governance it can also effects the performance of the company.The corporate governance report will shows all the activity of the leaders inside the company. In governing a company there are rules for the directors , managers, and shareholders that must be follow. Such as a Annual General Meetings, most of the leaders of the company must attend this meetings at lease twice a year. If they are not fullfil their job as a leader of the company, it will be reported in the corporate governance report. 1.2 Research Objectives 1.2.1 Primary Research Objectives The primary objectives of this project is to give some information about the latest situation of coporate governance in Indonesia using the latest data which is taken from the year 2009 and also a questioner which is from the year 2010. Many people believes that a good corporate governance system can attract more investors to the company, so inside this project it will tested wether that statement is true or not. And this project also want to know wether most of company in Indonesia have disclosed their corporate governance reporting transparently. 1.2.2 Secondary Research Objectives The secondary objective of this project are : From the research it will shows the advancement of corporate governance system in Indonesia. Showing the effectiveness of corporate governance reporting for the company Take some feedback from the employee in Indonesia about the corporate governance situation in the company where they are working. Chapter 2 Literature Review A good corporate governance is important for a company around the world. Instead of financial data of the company, investors also looking at the corporate governance disclosure data before they are deciding in which company that should they invest in. From the data it will show the management situation of that company. Some of the country around the world still very low in conducting a good corporate governance. Conducting a good corporate governance will make the company more profitable , it will attract more shareholders to invest in our company. Lawrence D. Brown and Marcus L. Caylor (2004) using a sample of 2,327 companies and based on 51 corporate governance provisions which is provided by Institutional Investor Services (ISS) they found out that companies which are better governed relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Based on a data which is taken from Institutional Shareholder Service , they create b road measure of corporate governance and they create Gov- score. The Gov-score was measured of 51 factors which is encompassing eight categories of the corporate goverenance which is : board of directors , auditors , characters by laws , executive and director compensation , ownership , progressive practices , and state of incorporation. Financial problem now adays become the major topic globally , it effects a lot of firms around the world. PaquitaY. Davis , Li Li Eng , and Chao-Shin Liu (2006) they were investigate the role of corporate governance mechanisms and accounting system in four different countries in Asia which is Indonesia , Korea , Malaysia , and Thailand. Those countries were effected by Asian financial crisis. They found out that it is depends on the corporate governance mechanisms and accounting system in effecting the book value of equity and it is also determining the relation between the accounting information and stock prices during the economy-wide financial crisis. Results of their finding is the earnings in Thailand and Indonesia was reduced during the Asian financial crisis and increased in book of value. In Korea , neither earnings nor book of value was impacted by the crisis. And the last one which is in Malaysia both book of value and earnings was decreased during the Asian financial crisi s. Bernard S. Black , Woochan Kim , Hasung Jang , and Kyung-Suh Park (2009) conduct a research in KCGI (Korea Corporate Governance Index). They try to find the relation between level of corporate governance and the effects the firm market value. And the findings of their research that overall firms that are better governed got a some competitive advantage than other company. From the research , overall firms who got higher KCGI will get higher dividends , got a lower capital expenditures ( because of Korea firms that are overinvest) but the investment is more sensitive to profitability , lagged board structure predicts higher profit , the related party transactions will reduce adverse for firm value. Robert W.McGee (2010) Indonesia need to develop the structure of the corporate governance. By developing a good corporate governance he found out that it will helps increasing the share prices and it will be easier to obtain capital. And from his research information which is from the Worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s bank ROSC report about rights of shareholders , equitable treatment of shareholders , role of stakeholders in corporate governance , disclosure and transparancy , and responsibility of the boards from the scale one to five , Indonesia overall score is 2.83% which conclude from his research that corporate governance in Indonesia is need to be develop. From the research he suggested that companies in Indonesia need to strenghten shareholder access to the information of the company , in treating the shareholders must be equally , and company must fully adopt the International Financial Accounting Standards (IFRS) and also International Standards of Auditing. Meidyah Indreswari (2006) identified Indonesia corporate governance status which was turn bad because of the tragedy of economic crisis in 1997. From the research the writters found out there are several factors that make corporate governance fail in that year. Firstly, using agency theory to explain the relation between the agent and the principal was more problematic in ISOEs than the private enterprise. Secondly, the rules of board director and management is really important for the company. Government should reduce their intervention in ISOEà ¢Ã¢â€š ¬Ã¢â€ž ¢s operating system in order to make the boards of the company to work more effective. Thirdly, findings of the research shows that the corporate governance in Indonesia was not effective due to unclear information about role of corporate governance and also a unclear programmes of the company. These problems can create the lack of commitment of the employee to the company which lead to failling of the corporate governance. La stly, other factors that lead into fail corporate governance are culture , public governance , and law enforcement. In order to fix those factors, there should be a joint efforts from the public sectore is needed to ensure a good corporate governance will be occure. A study also conducted by Maria Andersson and Manal Daoud (2005) using the agency theory to test the factors that influence the corporate governance disclosure information in Swedish listed corporations. Using 41 listed companies in Swedish as an example , according to they research it found out that factors that influence the corporations are the parents company it self and the size of the corporation in disclose the corporate governance information. They also find out that agency theory is not a proper theory to find the influence of corporations in disclose information about corporate governance. Zheng Fan , Liyan Wang , Jidong Zhang (2008) they conduct a research about the relation of company motivation in voluntary disclosure will effect the earning quallity of the company. The research information was taken from the Chinese capital market in 2004-2006 period. And the results of their result is that the company disclosure data and corporate governance of the company will not effects the earning quality of the company. There are many companies in different countries that already adopted a good corporate governance. When a lot company have adopted a good corporate governance and shows the transparency of the company performance, it will be easier for the investors to choose in which country they will invest in. But in some countries such as Indonesia there are still some difficulties in adopting a good corporate governce. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Dudi M. Kurniawan and Nur Indiriantoro (2000) did a research about the status of corporate governance in Indonesia. And the findings of the study were divided into 5 different parts which are factors that influence the corporate governance status in a company. The first part of his research was about the ownership structure in Indonesia companies. And he found out that Indonesia had two boards in corporate governance system which is not effective for the company. The second part of his research was about the efforts to develop the corporate governance in Indonesia , and he found out that Indonesia corporate governance still need a help from the international countries. The third part of his research was about the accounting standards in Indonesia which should be written according to the basic of International Accounting Standards. The fourth part of his research tell us about audit standards and the audit profession in Indonesia. He suggested that Indonesian auditors need to pay atte ntion to the standards in Indonesia. It is because according to his research a lot of Indonesian auditors look for USA auditors standards and forgeting the standards in his country. This will be a crucial effects for the company. And according to his research the cause of Indonesian financial crisis in 1997 was the auditors in Indonesia miss ditection of fraud that happened in most of companies in Indonesia. This fraud make a lot of company in Indonesia collapse.The fifth parts of his research found out the disclosure data of corporate Indonesia still need to be more transparancy to the public. So from his research conclude that there are a lot of challenges in conducting a good corporate governance in Indonesia but those challenges can be minimize if there is an efforts to conducting a good corporate governance from inside the company. Werner R. Murhadi (2009) did a research using some information from the Indonesia Stock exchange in period 2005-2007 specializes in manufacture companies to test the performance of the corporate governance in Indonesia. He was using five good corporate governance indicators which are independent commisioner , CEO duality , audit committee , top share , and shareholders coalition to investigate rather it will effects the earning management practices. The findings of the research was a good corporate governance will effect earning management practices which done by the company. Another thing that he found out from the research was a lot of companies in Indonesia do EM ( Earning Management ) with negative leans. The purpose of the company do that is to make their revenue look smaller which can help the company to avoiding tax. Sanjeev Bhojraj and Partha Sengupta (2001) they conducted research about the effect of corporate governance to the bond ratings and yield. They found out that corporate governance mechanisms will reduce conflicts of interest between the directors and the providers by monitoring to their actions. And they were also found out that company which have a greater institutional ownership and got influence by the external control of the board will have a lower bond yields and high ratings for the new bond issues. From the research they are suggested that company that are facing stronger external monitoring from the governance mechanisms are rewarded with low yields and high bond ratings. Monitoring the situation of the company should be maintain so it will stabilize the firm value of the company. Sridhar Arcot and Valentina G. Bruno (2009) studied about the different type of corporate governance will effects the firm performance. Their studied the effects of law in a country to the corporate governance mechanism. Since law and regulation is different from one country to the others, according Sridar and Valentina company must adjust to that law especially for the multinational firms. Disclosing corporate governance report is one of the important factor because they found out some of the governance report was uninformative which mean it was not clear. The impact of the weak corporate governace was it shows the the inefficient use of the firms resources which can lead to the poor operating income. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Siti Nuryanah (2009) said there are still a problem in Indonesia corporate governance specially in audit committee. The problems in audit committee in Indonesia is that they holding a double positions in other companies, which it make the audit committee is not efficient in doing the works. And also , there are some company that does not have an audit committee. By not having an audit committee will become a problem for the board of committe in taking a decision. The research found out that 30 % from the JSX (Jakarta Stock Exchange) public listed companies does not have independent commisioners. Although that kind of problem occure , from her results it was found out that most of the companies in Indonesia have complied with the regulation of corporate governance. Chapter 3 Methodology 3.1 Data The data of this project was taken from annual report in Indonesia stock exchange, IICD (Indonesia Institute for Corporate Directorship) reports which is the latest report, and 100 questioners which is given to the working people in Indonesia. The questioner was translating into Indonesia Language. 3.2 Methodology In this project there are two-research question that can lead to the answer of this research project. Each of the research questions will be tested in different type of statistical analysis test. The two-research questions of this project are: First: Is it true that adopting good corporate governance will attract more investors? Second: Using some factors in corporate governance reports, does most company in Indonesia have report their corporate governance data transparently? By using these research questions, several questions in the questionnaire had been made to gather answers from the respondents which then it will be linked back to answer the research questions. Inside the questioner there are divided into two section. The first section of the questioner is basic question about the corporate governance and the employee posisition in a company which they are working. The second section of the questioner is the important answer for this project which is contain all information that will be used to analyze. As for the following questions in the questionnaires, respondents will be asked about questions which are mostly related to the research questions 3.2.1 Research Question 1 Is it true that adopting good corporate governance will increse the company performance ? Hypothesis: H1: good corporate governance will give a significant effect to the company performance H0: good corporate governance will not give a significant effect to the company perfirmance From the research that was conducted by Lawrence D. Brown and Marcus L. Caylor (2004) said that there were some advantages in adopting a good corporate governance. He was using a sample of 2,327 companies and based on 51 corporate governance provisions that are provided by Institutional Investor Services (ISS). And found out that company that are better governed are relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Another people that argued about corporate governance mechanisms were Sanjev Bhojraj and Partha Sengupta they found out corporate governance mechanism can reduce a conflicts of interest between the directors. And also a company should monitoring inside the company so the goodness performance of the company can be maintain. From this type of question, from the statement above I would like to test whether companies that have a good corporate governance will have a lot of investors in it and also is it will attract more investors to the company. Using the survey question, it will guide to the answer of this question which are : How effective is the corporate governance report being used in your company? In your opinion, does good corporate governance will attract more investor? H0: à ? = 0 (There is no correlation between corporate governance and number of investors) H1: à ? à ¢Ã¢â‚¬ °Ã‚   0 (There is a correlation between corporate governance and number of investors) Sample correlation coefficient, commonly denoted  r, is calculated as following: Where X and Y are the sample means. T-test for correlation formula: 3.2.2 Research Question 2 Does most company in Indonesia have reported their corporate governance activity data transparently and disclosed it to the public on time ? Hypothesis: H1: All of the companies in Indonesia have disclosed their corporate governance activity transparently and on time H0: Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time Werner R. Murhadi (2009) explored some information period 2005-2007 in Indonesia Stock Exchange specializes in manufacture companies to test the performance of the corporate governance in Indonesia. One of the result from his research was, he found out a lot of companies in Indonesia still not develop transparency in reporting data of the company. A lot of companies want to avoid tax by creating an incorrect data, which is making the revenue of the company looks smaller. Another researcher were Zheng Fan , Liyan Wang , Jidong Zhang (2008) they are argued that the company disclosure data and corporate governance of the company will not effects the earning quality of the company I would like to test whether most of the companies in Indonesia have disclosed their coporate governance data transparently. Because a good corporate governance will show a transparency data, all the performance of the companies which is bad or good must be inform to the public. One à ¢Ã¢â€š ¬Ã¢â‚¬Å"Way Anova (Parametric Test) From using this type of test , data that used to this test will be from question number 7, question number 8, question number 9 and question number 10 , the question from the survey have been desing will be in a way that respondents are asked to rate . This test is used to test the equality of 3 or more means by using the variances. H0:  µ1=  µ2=  µ3=  µ4 ( Most companies in Indonesia have disclosed their corporate governance activity transparently and on time) H1:  µ1à ¢Ã¢â‚¬ °Ã‚    µ2à ¢Ã¢â‚¬ °Ã‚    µ3à ¢Ã¢â‚¬ °Ã‚    µ4 ( Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time) The formulas for the various sums of squares are as follows: SSE = SST à ¢Ã¢â€š ¬Ã¢â‚¬Å" SSA X = sample value ith item in the jth sample n = total sample size Xj = sample value of jth sample nj = size of the jth sample We will get the respective variances if we divide the sum of squares of SSA and SSE which are as follows: F-test formula: P-value: Degrees of freedom = k-1 Degrees of freedom = n-k These two values will be used to find the critical values for the F statistic and helps us to know whether the p-value is less than or more than the significance level. Conclusion: A null hypothesis will be rejected when the significant value from the test is lower than 5 percent 3.2.3 Limitations In this project there are some limitations in it. This project only representing a small objectives of coporate governance practices in Indonesia. Moreover, the data collected from this study are limited which is only from the Indonesia Institute of Corporate directorship and 100 questioners that had been given the working people in Indonesia. Chapter 4 Findings and Analysis 4.1 Data Statistic of Questioner Section 1 4.1.1 Statistics Questioner that was Given To the Respondent N Valid 100 Missing Total Respond 7 93 From the table 4.1.1, It shows that there are 100 valid questioner that have been produced but the respond that can be used only 93 because the other 7 questioner are missing or cannot be use. 4.1.2 Number of respondent that know corporate governance Frequency Percent Valid Percent Cumulative Percent Valid Yes 71 76.3 76.3 76.3 No 22 23.7 23.7 100.0 Total 93 100.0 100.0 4.1.3 Respondent Knowledge Of Corporate Governance Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 5 7.0 7.0 7.0 Bad 17 23.9 23.9 31.0 Neutral 19 26.8 26.8 57.7 Good 19 26.8 26.8 84.5 Very Good 11 15.5 15.5 100.0 Total 71 100.0 100.0 4.1.4 Respondent Status In Company Frequency Percent Valid Percent Cumulative Percent Valid Director 19 26.8 26.8 26.8 Manager 11 15.5 15.5 42.3 Supervisor 13 18.3 18.3 60.6 Non-Supervisor 28 39.4 39.4 100.0 Total 71 100.0 100.0 4.1.5 Relationship Of Directors and Shareholders in Respondent Company Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 7 9.9 9.9 9.9 Bad 18 25.4 25.4 35.2 Neutral 13 18.3 18.3 53.5 Good 26 36.6 36.6 90.1 Very Good 7 9.9 9.9 100.0 Total 71 100.0 100.0 4.2 Data Statistic of Questioner Section 2 Using pearson 4.2.1 Correlations between corporate governance and Shareholders Performance CG effectiveness Shareholders Performance CGeffectiveness Pearson Correlation 1 .219 Sig. (2-tailed) .066 N 71 71 ShareholdersPerformance Pearson Correlation .219 1 Sig. (2-tailed) .066 N 71 71 4.2.2 Correlations between Corporate governance and Commisioners Performance CG effectiveness Commisioners Performance CGeffectiveness Pearson Correlation 1 -.019 Sig. (2-tailed) .875 N 71 71 CommisionersPerformance Pearson Correlation -.019 1 Sig. (2-tailed) .875 N 71 71 4.2.3 Correlations between Corporate governance and Directors Performance CGeffectiveness DirectorsPerformance CGeffectiveness Pearson Correlation 1 .396** Sig. (2-tailed) .001 N 71 71 DirectorsPerformance Pearson Correlation .396** 1 Sig. (2-tailed) .001 N 71 71 **. Correlation is significant at the 0.01 level (2-tailed). IICD ( Indonesia Institute of Corporate Directorship) have made a report about the corporate governance status in Indonesia. Since the corporate governance report 2009 have not been come out yet, I am using the data from the year 2008 which is issued in 2009 by the IICD institute. Corporate Governance Performance by SOEs, Bank, and Overall Category Mean Score of Corporate Governance Performance (%) 2008 Study Previous Study SOEs 76.80 74.63 Banking 75.55 71.11 Overall 61.26 67.29 The table above shows the performance of corporate governance in Indonesia Listed company. The data show in two different categories which are State Owned Enterprises sector and Banking sector. There were difference in Corporate governance performance between the SOEs variable and Banking variable. The SOEs performance was 75.20 %, while Banking was only 56.50 %. However, there are some improvement of corporate covernance practices in both of the group. There were around four percent of increasement for those top quartile and bottom quartile respectively. It is still challenging tasks facing Indonesian corporations, regulatory bodies, and other governance-related institutions how to enhance the commitment of these bottom quartile companies to good corporate governance practices as well as those companies with corporate governace performance between the top and the bottom quartile. This does not mean that attention to those top quartile firms is not necessary. In the meantime, empiric al evidence shows that corporate governance is significantly correlated to companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic performance, although the correlation is weak. OECD Principles Mean Score (%) 2008 Study Previous Study Rights of Shareholders 50.37 51.23 Equitable Treatment of Shareholders 86.35 83.02 Role of Stakeholders 63.64 58.76 Disclosure and Transparency 70.81 66.64 Responsibilities of the Board 59.02 52.36 Overall Mean Score 64.96 61.26 Using the instrument from OECD ( Organization for Economic Co-Operation and Development) the IICD institute has conducted a survey which was given to the 314 public listed company in Indonesia. Inside the survey they are consisting 5 principles of OECD which are : Rights of Shareholders , Equitable Treatment of Shareholders , Role of Stakeholders , Disclosure and Transparency , and Responsibilities of the board. From the survey the IICD institute analyze the status of corporate governance in Indonesia in the year 2008. The results of research shows there are deflation in rights of shareholders in the year 2008 which is 50.37 % and from the previous study it shows that 51.23 %. But others factors for corporate governance in Indonesia had been increase in 2008, such as equitable treatment of shareholders in the year 2008 was 86.35% which is shows an advancement comparing to the previous study only 83.02 %. The role of stakeholders percentage also rise up in the year 2008 which is 63.64 % comparing to the previous study which in only 58.76%. Other factors that have been changing which is disclosure and transparency of the company, in the year 2008 it reach 70.81 % and the previous study only reach 52.36 %. The last factors that upsurged was responsibilities of the board, in the year 2008 in achieve 59.02 % and the previous study only 52.36 %. The overall mean score of the year 2008 was 64.96 % and the previous study was 61.26 %. The data shows that by using the OECD principles , the situation of corporate governance in Indonesia is getting better. Chapter 5 Conclusion and Recommendatio