The Role of Good Corporate Governance in Mediating the Capital Structure of Relationships to The Performance of Type A Hospitals in Indonesia

Abstract

The purpose of this study is to examine the role of corporate governance in mediating the relationship between capital structure and financial performance. Research related to corporate governance has been widely studied. However, this research focus at corporate governance as an independent variable that affects financial performance. The aspect of corporate governance acting as a mediator has not been explored much. Another novelty of this research is that it is mostly done in the private sector. Researchers want to investigate the role of corporate governance in mediating in the public sector in government-owned hospitals. The hospital is considered important because it is the spearhead of services in the era of the COVID-19 pandemic. An anomaly occurred during a pandemic because the hospital's burden increased in handling COVID-19 patients for COVID-19 referral hospitals. The surge in the number of patients in the hospital resulted in disrupted cash flow.The initial step of this research was to collect data related to the research variable, namely the financial reports of hospitals in Indonesia with A accreditation status. Testing was then carried out using partial least squares (PLS) to see the role of GCG in mediating.