GOOD CORPORATE GOVERNANCE DAN KINERJA KEUANGAN (Studi Empiris pada BUMN di Indonesia) (Studi Empiris pada BUMN di Indonesia)

Abstract

This study aims to examine the effect of good corporate governance
on financial performance. The independent variable in this study is
good corporate governance which is proxied as board of directors, board of
independent commissioners, audit committees, managerial ownerships, and
institutional ownerships, while the dependent variable of this study is financial
performance which proxied as return on assets (ROA). The sample
used in this study were 24 state-owned companies listed on IDX for the
2015–2019 period. The sampling method used is non-probability sampling.
This study uses secondary data in the form of annual reports for the 2015–
2019 period which obtained from the company’s official website. The data
collected were then analyzed by multiple linear regressions using SPSS 25.
The results of this study show that board of independent commissioners
have negative effects on ROA. This means that the greater the number of
board independent commissioners, the lower the ROA will be. The results
also show that other independent variables, namely board of directors, audit
committees, managerial ownerships, and institutional ownerships have
no effect on ROA.