Board member duality, agency costs, performance, and accountability: the evidence in parent and subsidiary of state-owned enterprises in Indonesia

The study of corporate governance of parent and subsidiary companies in the State- Owned Enterprises (BUMN) in Indonesia has received little attention from the public. In fact, an interlocking directorship between a parent company and a subsidiary is a common occurrence in BUMN in Indonesia; it is called “board member duality”, a new terminology proposed in this research. This terminology refers to the director of a parent company who is simultaneously serving as the commissioner of a subsidiary company. This addresses the gap found among several types of director duality which generally fall under CEO duality, Interlocking, and Multiple Directorships.