Effect of Board Characteristics, Capital Structure on Firm Performance and Value

The board of directors is one the components corporate governance used by company to improve firm's performance both in long and short term so that characteristics become key factors running a good system for company, even though having composition not always makes have because conflict interest occurs between principal manager there need an in-depth study impact capital structure on performance. This attempts assess specifically (board size, diversity, audit committee) owned structure, then confirmed effect firm value using ROE Tobin’s Q value. Was sample 25 had entered into LQ45 index within time frame 2015-2019. technique analysis was this Path Analysis. results testing hypotheses found size committee positive while diversity negative performance, otherwise,