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The effect of good corporate governance on financial performance in banking companies listed on the Indonesia stock exchange
Master of Accounting Study Program, Post-Graduate, Universitas Pembangunan Panca Budi, Indonesia.
Research Article
International Journal of Science and Research Archive, 2024, 13(02), 989–1003.
Article DOI: 10.30574/ijsra.2024.13.2.2189
Publication history:
Received on 05 October 2024; revised on 14 November 2024; accepted on 16 November 2024
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%.
Keywords:
Good Corporate Governance; Financial Performance; Independent Board of Directors; Independent Board of Commissioners; Managerial Ownership; Audit Committee; ROA
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
