EVALUATION OF PT ASURANSI JIWASRAYA (PERSERO) INVESTMENT STRATEGY AND GOOD CORPORATE GOVERNANCE TO IMPROVE THE INVESTMENT PERFORMANCE DURING THE PERIOD OF 2013 -2018

• Main Author: Maulidan Ahmad Wicaksana, Radhi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75460
• Institution: Institut Teknologi Bandung

This study investigates the investment strategy, investment performance, and corporate governance of PT Asuransi Jiwasraya (Persero) during the period of 2013-2018. To address these mismanagement issues, the study evaluates PT Asuransi Jiwasraya (Persero)'s investment strategy, investment performance, and corporate governance. It follows a systematic approach involving data collection, regression analysis, and interpretation using publicly available resources. Hypotheses are formulated and seven regression models analyze the relationship between these variables to identify potential improvements in investment performance. The findings reveal that the company’s investment strategy during the study period focused on growth investing and small capitalization stocks, with a significant proportion of dividend-paying stocks and stocks with conflicts of interest. The investment performance of the company's mutual funds exhibited lower returns compared to the risk-free rate, accompanied by higher standard deviation and negative risk-adjusted return. The analysis also highlights the company's comprehensive framework for implementing good corporate governance, as indicated by a "very good" SOE GCG assessment score of 90.43%. However, regulatory violations indicate a discrepancy between the assessed score and the actual conditions. Regression results demonstrate positive relationships between the selection strategy and investment performance, while investment manager characteristics such as management fees, education background, and years of experience show significant positive relationships. Conversely, investment horizon, asset size, and past performance exhibit significant negative relationships. The GCG score also shows a negative relationship with investment performance, further emphasizing discrepancies in the implementation of corporate governance. To improve investment performance, recommendations include shifting towards value investing, achieving a balanced stock composition, reducing dividend-paying stocks and stocks with conflicts of interest, selecting investment managers carefully, and strengthening governance practices in the investment business division. The study contributes to understanding the factors influencing investment performance and provides practical insights for enhancing PT Asuransi Jiwasraya (Persero)'s investment activities while offering valuable lessons for other insurance and investment managers to avoid similar situations.