The Effect Of Good Corporate Governance On Performance Company
Keywords:
GCG, Board of Directors, Board of Commissioners Commissioner, Managerial Ownership, Institutional Ownership, ROAAbstract
This study aims to analyze "THE EFFECT OF GOOD CORPORATE GOVERNANCE ON COMPANY PERFORMANCE (Study of Consumer Goods Industry Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2019 Period)". By using four Good Corporate Governance mechanisms, namely the Board of Directors, Board of Commissioners, Managerial Ownership, and Institutional Ownership as independent variables, while company performance is measured using Return On Assets (ROA) as the dependent variable. This study uses quantitative data with secondary data sources. The research data collection technique uses literature and documentation. The population in this study were 52 companies listed on the Indonesia Stock Exchange in the Consumer Goods Industry Sector. The research sample used a purposive technique with a total of 10 companies that met the characteristics. This study uses data analysis methods, namely: classical assumptions, multicollinearity, autocorrelation, heteroscedasticity, multiple correlation, multiple regression, coefficient of determination, t and F tests. (2 tailed) = 0.177> 0.05 meaning that there is no significant influence between the Board of Directors on company performance. The results of the H2 T test obtained a value of -2.386 <1.70814 and Sig. (2tailed) = 0.025 <0.05 meaning that the Board of Commissioners has a significant influence on company performance. The results of T test H3 obtained the result -1.189 < 1.70814 and Sig. (2 tailed) = 0.246 > 0.05 meaning Managerial Ownership does not have a significant effect on company performance. The result of T test H4 showed the result 2.943 > 1.70814 and Sig. (2 tailed) = 0.007 < 0.05 meaning institutional ownership has a significant effect on company performance. From the results of the F test, it is known that the calculated F value is greater than the F table (3.405 > 2.60), and the calculated significance value is smaller than the specified significance value (0.024 < 0.05) which means that the variables Ownership of Directors, Board of Commissioners, Managerial Ownership and Institutional Ownership have a significant effect on company performance
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