The role of the board commissioners in the implementation of the principles of good corporate governance and the achievement of the performance of bank perkreditan rakyat in tasikmalaya

Dedi Kusmayadi,Iwan Hermansyah

doi:10.24912/ja.v22i1.319

Abstract

This study aims to determine: the effect of the role of the commissioners, to the implementation of the principles of good corporate governance, the influence of the role of the commissioners and the implementation of the principles of corporate governance either partially or simultaneously on the performance of Bank Perkreditan Rakyat in Tasikmalaya. The method used a quantitative descriptive study population is a Bank Perkreditan Rakyat in Tasikmalaya, sampling using purposive sampling technique, with analysis tools using path analysis. The results showed that: the role of the board of commissioners, the implementation of the principles of corporate governance and bank performance generally categorized as good; the role of commissioner to the application of the principles of good corporate governance positively and significantly; and, the role of the commissioner and the application of the principles of good corporate governance partially and simultaneously on the performance of positive and significant influence.

Highlights

The lack of good corporate governance is one of the triggers of the financial crisis in Asian countries
The results of ADB's (2001) study of five Asian countries, including Indonesia, which was most affected by the economic crisis, tested that poor corporate governance was one of the main causes of economic instability that affected the 1997 economic crisis. some shareholders, capital markets that are still under development, and weak legal structures are examples leading to poor corporate governance in these countries
Primary data were collected by interview and survey methods with questionnaires related to the roles of the Board of Commissioners, Good Corporate Governance, and Performance

Summary

Introduction

The lack of good corporate governance is one of the triggers of the financial crisis in Asian countries (see, Johnson et al, 2000; Mitton, 2002). The results of ADB's (2001) study of five Asian countries, including Indonesia, which was most affected by the economic crisis, tested that poor corporate governance was one of the main causes of economic instability that affected the 1997 economic crisis. Some shareholders, capital markets that are still under development, and weak legal structures are examples leading to poor corporate governance in these countries. Johnson et al's (2000) empirical study shows that corporate governance applied within a country is better able to explain the extent of currency depreciation and declining capital market performance in developing countries than

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Conclusion