Said Musnadi

This study aims to investigate the influence of family commissioner boards (FCBs) on the operational efficiency of companies in Indonesia that use debt as a control tool, which includes bank and non-bank debt. Using the two-step GMM-First Difference estimation method, the research sample consists of 121 family-owned companies using unbalanced panel data from 2009 to 2018. This investigation produces several significant findings. Firstly, the results of the analysis show that the presence of family representatives on the board of commissioners has a negative impact on overall company performance. These observations suggest that FCBs may prioritize the interests of family shareholders over minority shareholders, which indicates entrenchment behavior. Second, the analytical results reveal that debt plays a moderating role in the influence of FCB on company performance. Debt acts as a deterrent to entrenchment behavior, thereby improving firm performance. Third, the results of the analysis did not find significant differences in FCB entrenchment behavior between companies that have bank debt and companies that have non-bank debt. These findings have significant policy implications for regulatory bodies in Indonesia regarding the governance of family-owned companies. It is vital to establish a mechanism for appointing family members to the board of commissioners that protects the interests of all shareholders and promotes a fairer corporate landscape.

Environmental degradation can lead to climate change, air and water quality degradation, and biodiversity loss. The study aims to assess the impact of illegal oil extraction on environmental, social, economic, and public health dimensions in Peurelak, East Aceh, Indonesia. Using proportional random sampling techniques, 245 respondents were selected, representing owners and investors (9), tenant investors (18), workers/laborers (68), melters (6), public figures/community leaders (3), the community (138), and village government officials (3). Data were analyzed using structural equation modeling (SEM) with AMOS software. The results revealed a significant negative effect of illegal oil mining on social, environmental, and health performance (p-values = 0.031, 0.029, and 0.010, respectively, at a 95% confidence level). Additionally, informal leadership and government support were found to positively influence illegal oil mining (p-values = .017 and .035, respectively, below the significance threshold of .05). Furthermore, illegal oil mining significantly affects economic performance (p-value = .021). This paper emphasizes the adverse impacts of unauthorized oil extraction on community well-being while highlighting the collusive role of informal leaders and government authorities. Additionally, the study reveals a worrisome positive relationship between illegal oil mining and economic performance in Indonesia.

Type of the article: Research Article

Abstract
Herding behavior, in which investors follow overall market trends rather than conducting independent analysis, has significant implications for market efficiency, volatility, and liquidity conditions, particularly in emerging markets like Indonesia. This study aims to investigate the presence and dynamics of herding behavior in Indonesia’s LQ-45 index during three distinct periods: pre-pandemic (2019), pandemic (2020–2021), and post-pandemic (2023). The sample comprises 22 firms consistently listed on the LQ-45 index, with daily data collected from 2019 to 2023. A time-series regression based on the Cross-Sectional Absolute Deviation (CSAD) model measured herding intensity, while a Granger causality test assessed the relationship between herding behavior and market liquidity. The results indicate that herding behavior intensified significantly during the pandemic, evidenced by a strong negative γ₂ coefficient (–0.0124, p = 0.0026) and an adjusted R² of 0.1902, the highest across all periods. In contrast, the pre-pandemic period showed relatively weak herding behavior under more stable market conditions, while the post-pandemic phase demonstrated a return to more independent decision-making. The Granger causality test confirmed a bidirectional relationship between market liquidity and herding during the crisis, while such causality was absent after the pandemic. In the pre-pandemic period, herding influenced liquidity (p = 0.014), while no significant causal relationships were found afterward. Overall, herding behavior increased during the pandemic but returned to more independent decision-making in the post-pandemic phase.

Acknowledgments
The authors thank to Universitas Syiah Kuala for supporting this research. We also thank the reviewer for the thorough review of this manuscript and for the guidance on this research article. We sincerely appreciate the time and effort you have dedicated to providing valuable feedback.