Abstract
This study discusses about good corporate governance implementation which in this study includes managerial ownership, institutional ownership, and audit committee which rated as capable to improve the images on banking which were bad, protect the stakeholder interest, and increasing the obedience to applicable laws and regulation and also general etiquette in banking industry in imaging banking system that is through company financial performance. The population of this study is all conventional and Islamic banking listed in Indonesia Stock Market throughout 2016-2018, sample that is used are 42 companies which have published their financial report from 2016 to 2018 continuously. The study result shows the managerial ownership variable has 0.02 significant effect towards financial performance, institutional ownership variable has 0.049 significant value towards financial performance, audit committee variable has 0.031 significant value towards financial performance. Meanwhile, they are simultaneously having 0.031 significant value towards financial performance.
Highlights
Bank is an industry which in its business activity rely on people trust so that the health level of bank need to be maintained
This research is conducted in order to test the CG which is affecting to financial report performance and at the same time researches another factor which is yet to be studied by previous researcher, which is independent commissioner and using previous research variable which are profitability and leverage as controlled variable
The research method in this research is quantitative descriptive in which this research describes the CG effect on financial performance which is the data in form of data that can be calculated, financial data from BEI, in this research the variable used are managerial, institutional ownership, and audit committee
Summary
Bank is an industry which in its business activity rely on people trust so that the health level of bank need to be maintained. The researcher in this study is only focusing on conducting the CG mechanism test (independent commissioner, managerial ownership, institutional ownership, audit committee) which have an effect on financial report performance. This research is conducted in order to test the CG (independent commissioner, managerial ownership, institutional ownership, audit committee) which is affecting to financial report performance and at the same time researches another factor which is yet to be studied by previous researcher, which is independent commissioner and using previous research variable which are profitability and leverage as controlled variable.
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