This study aims to empirically investigate the effect of ultimate controlling ownership, as indicated by entrenchment effect and alignment effect, to firm performance both accounting and market performance. This study also investigates the role of effectiveness of the Board of Commissioners moderating variables. This study shows that firm performance tends to increase as the cash flow right of ultimate controlling shareholders increases, which is consistent with the alignment effect. This paper found that the entrenchment negatively affects firm value. The highly effectiveness of Board of Commissioners could increase the alignment effect and reduce negative entrenchment effect of controlling shareholders to the firm performance.