The Impact of Total Quality Management in Corporate Governance

Abstract

This research paper aims to analyze the influence of total quality management (TQM), in the implementation of good corporate governance. Good corporate governance, the dependent variable, was measured by institutional ownership. Independent variables related to internal control were measured in terms of financing, those pertaining to TQM were measured by market shares and those describing audit committees were measured by the number of audit committee meetings in one year. This research uses data presented in the annual reports of Indonesia Stock Exchange Listed Manufacturing Companies and service companies in the period 2011 to 2013. The evidence shows that TQM have influence on the implementation of good corporate governance.