PENGARUH GOOD CORPORATE GOVERNANCETERHADAP KINERJA KEUANGANPADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2016 – 2018

Abstract

The very rapid development of banking and a high level of complexity can affect the performance of a bank. The high complexity of banking businesses can increase the risks faced by banks in Indonesia. This study aims to determine the effect of good corporate governance on financial performance in banking companies listed on the Indonesia Stock Exchange for the period 2016-2018. The independent variable used in this study is Institutional Ownership, Independent Commissioner, Board of Directors and Audit Committee, while the dependent variable used is financial performance using the Return On Asset (ROA) proxy. The analysis technique used in this study is multiple linear regression analysis where previously the data was tested using a classic assumption test consisting of normality test, multicollinearity test, autocorrelation test and heteroscedasticity test. The results showed that institutional ownership and the board of directors had a significant effect on return on assets. Meanwhile, the independent commissioners and audit committee do not have a significant effect on return on assets. Simultaneously the good corporate governance mechanism has a significant effect on return on assets.