The Influence of Good Corporate Governance Implementation towards Employee Performance in PT. XYZ, Surabaya.

Abstract

In the era of business volatility and uncertainty, there are companies that dealing with loss caused by fraudulence and unethical actions. Good Corporate Governance (GCG) known as one of the best management frameworks, is now being adapted and implemented by many of companies around the world. It is often referred as the formal standard for business principles and corporate ethics. This research paper aims to measure the influence (including correlation) of Good Corporate Governance (GCG) implementation towards the employee performance in PT. XYZ, Surabaya. Method used in this study is simple linear regression applying the equation of Y=a+bX. Some of activities done here include observation and analysis where survey is conducted using questionnaire, process of identification and data modelling, parametric testing, goodness of fit evaluation, and also hypothesis examination. Based on the analysis result, it is found that Good Corporate Governance implementation has influence towards employee performance positively and significantly in PT. XYZ with coefficient determination value at the number of 0,41 which is categorized as fine correlation.