PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN YANG TERDAFTARDI BURSA EFEK INDONESIA

Abstract

The purpose of this study was to determine the effect of the implementation of Good Corporate Governance (board of commissioners institutional ownership and audit committee) towards the financial performance of companies with five indicators: return on assets (ROA), Return on Equity (ROE), Operating Expenses to Operating Income (ROA), Net Interest Margin (NIM) and the Capital Adequacy Ratio (CAR) on banking companies listed at Indonesia Stock Exchange from 2005 to 2009. The sample was banking companies listed in Indonesia Stock Exchange in 2005-2009. The data of this study comes from the bank's annual report (annual report) 2005-2009 obtained from the website of the Indonesia Stock Exchange, Banking Directory Indonesia, Indonesian Capital Market Directory (ICMD). The analytical method used was multiple linear regression and the sample used in determining the purposive sampling method and obtained 14 samples of banks.The study found that the implementation of good corporate governance does not affect the financial performance of the banking companies listed in Indonesia Stock Exchange.
Keywords: Good corporate governance, financial performance, banking, Indonesian Stock Exchange