The Effect of the Application of Good Corporate Governance Principles on the Managerial Performance of General Companies in the Tirta Kanjuruhan Area

Abstract

The purpose of this study is to find out the description of the application of the principles of transparency, accountability, responsibility, independence, fairness to the Tirta Kanjuruhan Regional Public Company. This research focuses on the effect of the application of good corporate governance principles on the managerial performance of general companies in the tirta kanjuruhan area. This type of research is quantitative research with multiple linier regression techniques. The total population of this study was 36 people, with the method used was a census. The respondents of this study were middle-level officials at the Tirta Kanjuruhan Regional Public Company. The results showed that the implementation of good corporate governance on the principle of transparency gained good perception by Perumda Tirta Kanjuruhan employees. The participation of employees in decision making was responded positively by respondents. Meanwhile, with accountability, clarity of functions, implementation, and accountability of organs so that company management is carried out effectively. It was found that the division of tasks of the Perumda Tirta Kanjuruhan organizational structure had matured and did not cause overlapping task implementation between employees. That responsibility is very effective in managing the company. Prudence shows that in Perumda Tirta Kanjuruhan in running its business is very concerned about business risks. The principle of independence shows that the company has been managed in a healthy manner. Professional to determine performance targets, in preparing the company’s annual work plan shows that in running its business Perumda Tirta Kanjuruhan has a measurable business orientation. In the principle of fairness, it is found that in running a business, the company can balance between the interests of the company and the rights of stakeholders.