Title: Evaluating the role of independent and female directors on the remuneration committee: evidence from LQ45 and IDX SMC liquid

Authors: Josua Tarigan; Jennifer Adriana; Saarce Elsye Hatane

Addresses: Petra Christian University, Jl. Siwalankerto No.121-131, Surabaya, Jawa Timur, Indonesia ' Petra Christian University, Jl. Siwalankerto No.121-131, Surabaya, Jawa Timur, Indonesia ' Petra Christian University, Jl. Siwalankerto No.121-131, Surabaya, Jawa Timur, Indonesia

Abstract: This study uses a sample of Indonesian large and small-medium enterprises to examine the effect of independent and female directors on the relationship between remuneration and firm performance. Pooled cross-sectional data is gathered from 138 LQ45 (Liquid 45) and 142 IDX SMC (Indonesia Stock Exchange Small-Mid Cap) liquid observations, with 2017 to 2020 as the observation years. The different influence towards executive remuneration between Indonesian large and small-medium companies, but similar participation percentages, indicate that their number or presence may not determine the success of independent and female directors in influencing remuneration. This study extends earlier research on the influence of independent and female directors on remuneration committees. This is notably the first study to evaluate the influence of independent and female directors on remuneration committees that uses Indonesia as the sample, comparing large and small-medium companies.

Keywords: independent directors; female directors; remuneration committee; remuneration; company's performance; LQ45; IDX SMC liquid.

DOI: 10.1504/IJBGE.2026.150424

International Journal of Business Governance and Ethics, 2026 Vol.20 No.1, pp.93 - 114

Received: 30 Jul 2022
Accepted: 02 Oct 2023
Published online: 13 Dec 2025 *

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