The effect of good corporate governance on financial performance in banking companies listed on the Indonesia stock exchange
Year: 2024
Type: article
Abstract: This research was conducted by a banking company listed on the Indonesia Stock Exchange. The purpose of the study is to find out and analyze the influence of Good Corporate Governance on financial performance in banking companies listed on the Indonesia Stock Exchange. Good Corporate Governance in this study is measured by the Independent Board of Directors, Independent Board of Commissioners, Managerial Ownership and Audit Committee. Meanwhile, Financial Performance is measured by return on assets (ROA). The number of samples in this study is 120 financial statements. The research was conducted from 2021 to 2023. This study uses quantitative data processed with the Eviews application with a linear regression model of panel data. The data source used is secondary data taken from the Indonesia Stock Exchange website. The results of the study show that the Independent Board of Directors partially has a positive but not significant effect on ROA. The Independent Board of Commissioners has a significant positive effect on ROA. Managerial ownership has a significant positive effect on ROA. The Audit Committee has a significant positive effect on ROA. Meanwhile, simultaneously the Independent Board of Directors, the Independent Board of Commissioners, Managerial Ownership and the Audit Committee simultaneously had a significant positive effect on the ROA variable. The amount of influence contribution is 84.82%.
Institution: Universitas Pembangunan Panca Budi Medan
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4404552655