Abstract
A company will be more productive if the company is in a stable condition, both in terms of finances, personnel, and the political and social climate of the country where the company lives. Good economic improvement can be realized one way by prioritizing good corporate governance (GCG), which is a governance concept. good company and prepare a governance framework that includes the mission to be achieved, rules and clear conventions for guidelines for achieving the mission.
 The research sample used Purposive Sampling technique. Company sampling was carried out based on the criteria of annual financial report data available consecutively during the research period. The results of this research found that Variable X1 has no effect on Y, Variable X1 has no effect on Z, Variable X2 indirectly affects Y through Z.
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