The Effect of Governance Mechanisms and Environmental Disclosure on Financial Performance with Firm Size Moderation

Adhevia Perdana Putri (Department of Accounting, Universitas Dian Nuswantoro, Indonesia)
St. Dwiarso Utomo (Department of Accounting, Universitas Dian Nuswantoro, Indonesia)
Imang Dapit Pamungkas (Department of Accounting, Universitas Dian Nuswantoro, Indonesia)
Enny Susilowati Mardjono (Department of Accounting, Universitas Dian Nuswantoro, Indonesia)

Jurnal Ekonomi, Manajemen, dan Bisnis
Vol. 4 No. 3 (2026): Jurnal Ekonomi, Manajemen dan Bisnis

This study investigates how managerial ownership, independent commissioners, board meeting frequency, board diversity, and environmental disclosure influence financial performance, with firm size acting as a moderating variable. The research is driven by discrepancies in previous studies on corporate governance and financial outcomes. The population includes state-owned banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2024. Using purposive sampling, 30 observations from 5 banks were analyzed. Moderated Regression Analysis (MRA) was used to test the hypotheses. The findings indicate that managerial ownership and board meeting frequency have significant negative effects on financial performance, whereas independent commissioners, board diversity, and environmental disclosure have no significant effects. Only the relationship between board meeting frequency and financial performance is moderated by firm size, which weakens its negative effect. These results contribute to agency and contingency theories by showing that governance mechanisms do not always positively influence performance, and firm size has a limited moderating effect in state-owned banks.