TRI HITA KARANA AS A MODERATING VARIABLE OF GOOD CORPORATE GOVERNANCE AND CROSSED CREDITS IN FINANCIAL PERFORMANCE OF RURAL CREDIT INSTITUTION OF GIANYAR DISTRICT, INDONESIA

Abstract

This study aims to determine how Tri Hita Karana moderates the effect of Good Corporate Governance and Bad Credit on Financial Performance of the Rural Credit Institution in Gianyar Regency. The population in this study is all Rural Credit Institutions (LPDs) that are still operating in Gianyar Regency, as many as 270 populations. The sampling technique uses proportionate stratified random sampling method using the Slovin formula to get the results of 73 research samples. The data analysis technique used is multiple linear regression with Moderated Regression Analysis (MRA). This study found that GCG had a positive effect on LPD financial performance in Gianyar Regency, Bad Credit had a negative effect on LPD financial performance in Gianyar District, and THK weakened the influence of GCG and bad credit on financial performance in LPD of Gianyar Regency.

Keywords

• tri hita karana
• good corporate governance
• loan loss
• financial performance
• agency theory