Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Perusahaan (Studi Pada Perusahaan yang Terdaftar di BEI Pada Tahun 2016-2018

Abstract

This study aims to determine the effect of good corporate governance on the financial performance of banking companies in the Indonesia Stock Exchange in 2016-2018. The indicators used to explain corporate governance in this study consisted of the composition of the board of commissioners, the number of boards of directors and the size of the company. Financial performance is measured using Cash Flow Return On Assets (CFROA) with multiple linear regression methods. The number of samples used were 23 companies taken through purposive sampling. The results of this study prove that corporate governance simultaneously influences the company's financial performance, while partially the size of the board of directors has a positive effect on the company's financial performance; and the size of the board of commissioners and company size have no significant effect on the company's financial performance.