ABSTRACT
Performance of family firms in Indonesia is an interesting topic of study. Some studies had been conducted in an attempt to understand the performance of family firms, especially the ones that went public. This study aims at examining the effect of family governance on firm performance moderated by debt, firm age, and firm size. The effect of various factors relating to family governance on firm performance was tested through board size, board independence, director’s degree, director’s expertise, leadership structure, debt, firm age, and firm size. The moderating variables of this study include earnings per share, operating cash flow, and Tobin’s Q of the company. The success of the family firm plays an important role in regulating leadership duality for the survival of their firms and protecting their legacy for future generations. The sample study comprised 58 family companies listed on the Indonesia Stock Exchange in 2016–2018. This study explored family governance and firm performance, which serve as the basis for defining the significant increase in the company’s revenue. Further studies will be helpful for future business research and policymaking practice.
