THE EFFECT OF GOOD CORPORATE GOVERNANCE ON THE PERFORMANCE OF VILLAGE CREDIT INSTITUTIONS WITH TRIPLE BOTTOM LINE ACCOUNTING AS MODERATING VARIABLES

Abstract

This study aims to identify and explain Triple Bottom Line Accounting as a moderating effect of Good Corporate Governance on the performance of rural credit institutions. This research was conducted at 35 Village Credit Institutions (LPD) in Denpasar City, which are spread over 4 sub-districts, namely South Denpasar, North Denpasar, East Denpasar, West Denpasar. Researchers use the entire population as a sample or what is known as a saturated sampling technique. The data used in this study are primary data and secondary data. The data analysis technique in this study used a simple linear regression test and Moderated Regression Analysis (MRA). The results of this study are (1) Variable Good Corporate Governance has a significant positive effect on LPD performance in Denpasar City, and (2) Triple Bottom Line Accounting variable is a moderating variable that strengthens the effect of Good Corporate Governance on LPD performance. These results indicate that the implementation of Good Corporate Governance and the implementation of the Triple Bottom Line Accounting concept can improve LPD performance. The contribution of this research to LPDs in Denpasar City, namely through the implementation of GCG which has recently been introduced and applied to the LPD business processes when coupled with synergies between financial and non-financial aspects (planet, people, profit) which is reflected in the concept of Triple Bottom Line Accounting is expected to be able to improve the performance of LPDs in Denpasar City.

Keywords

• triple bottom line accounting
• good corporate governance
• village
• credit institution