![](bg4.png)
negative effects because unstandardized coefficient
of regression is negative.
Corporate debt has a negative effect which
means that the greater the long-term debt used to
fund the total assets of the company will result in a
smaller ROA. These results are reinforced by the
results of Gottesman and Morrey (2010) which
states that the company's debt has a negative effect
on ROA. In bad economic conditions, the use of
debt will lower profits because in times of bad
economy, loan rates are generally higher, while sales
and corporate profits will decline. During 2013 -
2015 stated that the Indonesian economy is slowing
down, the growth rate of Indonesian economy has
decreased from 5.8% in 2013, 5% in 2014, and 4.8%
in 2015.
The age of the company has a negative effect
which means that the older the company's age, the
smaller the company's ROA. The results of this
negative influence are supported by research by
Perryman et al. (2015) and Amran et al (2014). The
structural inertia theory believes that as
organizations become larger, both in size and age of
the organization, the volume of bureaucracy
increases and this can lead to resistance to change
that will ultimately lower the rate of return (Orens
and Reheul, 2013.).
The size of the company negatively affects ROA,
which means the larger the size of the company, the
smaller the company's ROA. This result is supported
by research by Amran et al. (2014), Perryman et al.
(2015) .The structural inertia theory believes that as
organizations become larger, both in size and
organizational age, the volume of bureaucracy
increases and this can lead to resistance to change
that will ultimately lower the rate of return (Hilman
and Cannella, 2007).
4 CONCLUSIONS
The level of education of the CEO has no significant
effect on company performance (ROA). In CEO
election, the ability to handle environmental and
business challenges is a highly considered factor.
Low-educated CEOs face some limitations, but they
perform very well to achieve CEO position. The
experience and tacit knowledge of the CEO is the
informal knowledge that can be used in managing
the company, including when making strategic
decisions for the sustainability of the company
Indonesian State-Owned Enterprise in the future.
CEO age has a significant positive effect on the
company's performance (ROA), which means the
older the CEO, the greater the ROA generated by the
company. Older CEOs will tend to avoid risks and
be less hasty. The CEO age also reflects the amount
of experience gained, both in terms of age, industry
experience, and experience throughout the
organization. The senior generation has a lot of
hands-on fieldwork experience in a career that will
have an impact on the company's performance.
Gender CEO no significant effect on company
performance (ROA), both men and women at the
highest peak of company management does not
affect company performance (ROA). The results are
not significant because the gender sample data of the
Indonesian State-Owned Enterprise is unbalanced.
Of the 168-sample data of CEO Indonesian State-
Owned Enterprise from 2013 - 2015 there are only 6
CEO Indonesian State-Owned Enterprise which is
female gender and the remaining 162 are CEO
Indonesian State-Owned Enterprise with the male
gender. In other words, in this research, female
CEOs do not show results because the numbers are
not equal to the number of male CEOs.
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