PENGARUH GOOD GOVERNANCE TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

The purpose of this study was to determine the effect of good corporate governance on financial performance in banking companies listed on the Indonesia Stock Exchange. The analytical method used is multiple linear regression analysis. The results showed that a) simultaneously the board of commissioners, board of directors, independent commissioners, company size had an effect on financial performance and b) partially variables X1, X2, and X3 had a positive effect on financial performance but were not significant and variable X4 had a negative effect on performance financial not significant. This means that if the number of board of commissioners, board of directors and independent commissioners is increased it will be able to cause an increase in the company's financial performance but this effect is not significant. And conversely, if the size of the company gets bigger, it will cause a decline in the company's financial performance. This should be a concern of the company, with the increasing size of the company will cause a decline in company performance. The limitation of this study is that the formulation of the regression analysis used is not appropriate because the data used have different measurement scales.